On Monday morning, Edmonton’s executive committee decided to recommend the city start charging developers to build fire halls in nieghbourhoods when they sub-divide the land.
“We will be charging a fee, at the time of subdivision, for future fire stations, representing a shift in cost from ratepayers to those who most directly benefit from the fire station facilities,” explained urban strategies director, Lindsey Butterfield.
The change is just one “off-site” levy the city could contemplate as it struggles financially with the effects of the pandemic.
“We’ve got to keep talking to the development community about where those costs are more rightly borne by incremental new home owners, rather than general taxpayers,” Mayor Don Iveson said.
He said new homes should reflect their true costs, not just for the land and house, but also the financial implications of extending things like utilities, infrastructure and services out further and further away.
“Making sure that we’re not unintentionally subsidizing the development of new community at the cost of all other taxpayers, and that includes business.”
The bylaw, as proposed, would see developers pay an average of $17,500 per hectare towards fire rescue services.
“The cost of land, design, construction, furniture, fixtures and equipment, which include one fire truck per facility,” Butterfield said.
“We’re talking a very small amount of money per individual home,” the mayor said.
Iveson added there’s financial benefits for developers when building within a certain distance of a fire hall too.
While presenting to the executive committee, Butterfield said the levy would cover between 40 and 45 per cent of construction costs. The city will still be on the hook for the remainder.
Overall, Iveson said the change would save taxpayers $50 million on future neighbourhoods.
A group representing Edmonton’s developers, the Urban Development Institute, said it’s on board too.
“As city builders, we believe that growth should pay for growth,” Edmonton chair Michael Kohl said.
“We support the inclusion of fire halls as an off-site levy.”
Kohl took some issue, however, with the idea that the levy would include costs like fixtures and furniture.
But Coun. Ben Henderson disagreed, saying a fire house needs those things to be operational.
Kohl also said developers take issue with the levy including some city initiatives like public art associated with new builds, and green building standards in line with Edmonton’s climate strategy.
That was a consideration that caught the attention of Coun. Tim Cartmell, who might bring forward an amendment to council when it debates the bylaw.
If approved, the funding changes would come into effect Jan. 1, 2022.