construction site

Growth-related infrastructure & Development Cost Charges (DCCs)

New developments and growth increases the demand for new or expanded infrastructure and services from municipalities, this can result in what is called offsite infrastructure requirements. 

Offsite infrastructure is triggered by development and refers to offsite works required for our growing community. This includes: 

  • Improvements to non-local roads and the active transportation network.
  • Increasing water and fire flow (ex. water main upsizing, a larger booster station).
  • Sewer main upsizing to handle additional flow.
  • An expansion to the wastewater treatment plant. 

Offsite infrastructure does not include:

  • Development service connections and frontage works (ex. a sidewalk or paving to centerline immediately fronting a development). 
  • Works internal to a new subdivision where the developer pays for the roads, water/sewer distribution systems, and other services within the subdivision. 

Offsite infrastructure may be required when a developer builds a new subdivision, commercial or residential buildings, when a business owner constructs an addition to their buildings, or when a homeowner builds a Detached Secondary Residential Dwelling (ex. carriage house).

Offsite infrastructure may need to be installed or upgraded before, or in conjunction with, the new building or subdivision proceeds. Depending on the required infrastructure and circumstances (such as timing and localized vs. broader community infrastructure). 

There are two main ways that this can occur:

  1. Through a Development Cost Charges program and bylaw. 
  2. The infrastructure can be installed/funded by a developer(s) and in certain circumstances recovered from other developers through other development-related infrastructure projects.

The Town of Golden has started the process of creating a new DCC program and an update to Development Cost Charges Bylaw No. 1304, 2012.

Development Cost Charges (DCCs)

Development Cost Charges (DCCs) are fees that municipalities charge developers of subdivisions or new buildings, these fees help fund the infrastructure required to support the new development. The fees are placed in reserve funds to contribute to future capital projects identified within the Town’s DCC Program. 

DCCs help facilitate development by providing a method to finance some of the capital projects needed to keep up with growth. 

Background: DCCs in Golden

The Town’s current bylaw was adopted in 2012, and includes DCCs for water and sewer.

To better inform the Town and the development community the following studies have been completed and will inform the new DCC bylaw:

Anticipated to be completed by the end of March 2025:

  • Sewage Treatment Capacity Feasibility Study
  • Integrated Water Strategy

The DCC bylaw update will continue to include DCCs for water and sewer and it is anticipated the new bylaw will also include new DCC categories: transportation and parks. 

Based on these plans and studies, the Town anticipates significant increases in its DCCs rates.  

In-stream application protection

Legislation protects in-stream applications which include: 

  • Subdivision applications or building permit applications; and 
  • Precursor applications (rezoning or development permit);

To qualify for in-stream protection (i.e. paying the current 2012 rates) the developer must: 

  1. Submit a complete application to the Town, with fees paid, before the adoption of the new DCC bylaw (the new DCC rates will not be in effect until Q3 2025 or later); and 
  2. Within one year of bylaw adoption:
    1. final subdivision approval must occur; or 
    2. building permit issuance must occur. 

DCC Bylaw Timeline

The Town of Golden is currently working on an updated DCC Bylaw. The following timeline is a tentative schedule, subject to change.

Other development-related infrastructure projects

DCCs is just one of the tools available to local governments to use as a cost recovery mechanism. Others tools may include local area service taxes, fees or specified areas parcel taxes. These cost recovery tools typically do not meet the accepted benefiter pay principal, where a developer is charged in proportion to how much the development benefits.  

This means that in certain circumstances, Developer-Build Agreements are required for localized infrastructure to service new growth immediately and before development approvals.  For these required offsite works, specific scenarios (with catchment areas) and financing tools options are being researched and analyzed for consideration by the Town and the development community. These tools may include:

Timeline for other development financing tools:

In Q2 (April - June) 2025, the Town anticipates having guidance and scenarios for review and discussion with the development community for financing tools beyond the DCC financing method.