City of Penticton’s plan to hike development fees ‘rammed down people’s throats’: home builders

The South Okanagan branch of the Canadian Home Builders Association is slamming the City of Penticton’s proposal to hike development fees by 40 per cent over the next two years.

Joe Wackerbauer said the increases to development cost charges (DCCs) will result in higher prices of new homes.

“It’s just going to be another cost that gets passed on down to the consumer in the end and they are going to be paying more for their homes,” he told Global News on Tuesday.

“It’s just poor planning, this should have been taken care of over the past 13 years and not just rammed down people’s throats,” Wackerbauer said.

DCCs are fees developers pay to the municipality to help cover the costs of new public infrastructure associated with increased density, such as parks, roads, water, sewer and stormwater systems.

The city says Penticton’s DCC rates were last updated in 2007 and are “now out of step with current construction costs, building practices, development needs and infrastructure requirements,” according to a media release.

“When you look at the cost of infrastructure since 2007, we’ve estimated they’ve gone up almost 40 per cent and really this is an inflationary increase to help offset that,” said Blake Laven, the City of Penticton’s director of development services.

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