A city committee endorsed a move to fast-track approvals for new communities on Calgary’s outskirts, but only if they don’t require capital investments from the city.
Currently, developers submit applications throughout the year to build new subdivisions, but a final decision from city council only comes once a year, during budget deliberations in November.
According to city administration, this is because applications are reviewed to determine the capital costs required to enable construction, which could include roads, utilities and water, as well as emergency services like fire stations.
However, city administration says some of the applications for new neighbourhoods only require operating investments for the city services and not new capital costs, as they leverage previously installed infrastructure.
On Wednesday, the city’s Infrastructure and Planning committee unanimously endorsed a proposal that would speed up approvals for new subdivisions, provided they only require operating costs.
“We talk about removing red tape, and this is an opportunity to remove red tape,” said Ward 1 Coun. Sonya Sharp, who chairs the committee.
As part of the proposal, administration is also recommending city council approve six new subdivisions.
Operating costs, which are supported by property taxes, for the neighbourhoods are $140,000 per year to expand Calgary Transit service to the areas.
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But the city’s report on the proposal warns council’s approval of a new community commits the city to future long-term operating and capital investments “as a community develops and services are provided to future residents.”
City administration estimates at full buildout, the six new subdivisions will require $3 million in tax-supported funding annually for city services.
The communities will also eventually require $609 million of capital investment, with $189 million supported by taxes, $109 million coming from off-site levies and development fees, and $311 million coming from utilities to be repaid by user fees.
“When you look at full buildout you have to look at the return on investment and how much those houses and that area will bring money back into the city as revenue generation,” Sharp said when asked about the potential future costs.
The move is getting support from the development industry with representatives from BILD Calgary Region noting the current process can create delays.
“It better aligns approvals with infrastructure readiness, reduces uncertainty for investors, and supports a more responsive approach to Calgary’s growing housing needs,” Deborah Cooper with BILD Calgary told committee. “That small shift helps manage costs and risk more effectively and supports a more reliable housing supply.”
However, it follows a slew of spending commitments from city council outside of budget talks, including $20 million in surplus Enmax dividends for city facility upgrades, and $15 million to retrofit Calgary Transit buses with improved shields to protect operators.
“There are times that you have to look at making decisions that are outside of the budget cycle in the best interest of the people you serve,” Mayor Jyoti Gondek said.
“When we are trying to deliver on housing, sometimes those ideas need to come forward ahead of a budget cycle.”
The six new communities as well as proposed change to the approvals process will now go to city council as a whole for a final decision later this month.
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