Off-Site Levies under discussion with The City of Edmonton
The new MGA and City Charters have enabled municipalities sweeping new levy powers, which could mean that new developments pay for more City infrastructure and facilities in the future. NAIOP and our industry partners are working hard with the City of Edmonton on this important initiative.
Off-site levies are charges imposed at the time of subdivision (or development permit) to pay for new infrastructure or facilities. The previous MGA (Municipal Government Act) allowed municipalities to levy for land and facilities related to new or expanded:
Storm sewer drainage
And municipal roads
The October 2017 update to the MGA expanded the above list of off-site infrastructure to also include:
fire halls, and
community recreation facilities
These potential changes to levies could download over $1 Billion in cost to land developers (residential, commercial and industrial), in the City of Edmonton alone, over the next 30 years.
Additionally, new City Charter legislation allows the City to create off-site levies for any infrastructure, with very few limitations, increasing the exposure of land developers to incalculable rates.