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Land levies set to almost double in 2012

Mar 3, 2011 | 3:52 PM

With rising land levies for future development to be adopted by the city, developers had the chance to voice their concerns.

On Wednesday, the city hosted the first land developers’ forum of the year. City planner Yves Richard and city manager Robert Cotterill explained to the crowd the city’s plans to increase land levies for the development of property.

The city is planning to increase levies from $19,500 per acre in the West Hill area and $11,750 per acre everywhere else in the city to $39,826 per acre.

“To be able to accommodate growth for the next 25 years and to be sure we have enough money to accommodate that growth, we need to increase levies,” said Richard.

Richard explained that the previous levies were last adjusted in 2001 and at that level were the lowest in the province for major cities. The increase, he said, would put Prince Albert’s levies above cities like Moose Jaw and North Battleford, but lower than Regina and Saskatoon.

The increased levies were based on a report commissioned by the city to look at growth trends. The report showed that a conservative estimate of growth would see an additional 6,000 residents and about 150 residences built per year over the course of 25 years.

Cotterill said the increase were necessary because not only were costs and labour going up, but so was the need for water infrastructure as development moved further and further away from the city’s water treatment plant.

“We have to charge those costs to the appropriate developments. Do you want the existing taxpayer to pay for future development? No,” said Cotterill.

Levies cover the future costs for infrastructure, for things such as water and sewer, roadways and development of the water treatment plant.

Developers participate in conversation

After Richard’s presentation, the floor was turned to developers. A concern was brought forward that it would result in higher costs for the home buyer.

“We have to pass that on to the consumers,” the developer said.

Another estimated that, the increased levy would mean each home would end up costing around $4,500 more to develop. He suggested the city should consider working towards infill in the downtown and surrounding areas.

City manager Cotterill said while that was indeed an option, the desire simply wasn’t there.

“The developer has to want to do it and he has to get a return on his investment,” he said, adding that most who came to the city didn’t want to be in the business of renting and that meant the downtown areas were less desirable.

Council to see report

Richard said the city’s planning department would be taking concerns heard by developers to council for approval.

He said the soonest the increased levies could be put into place would be in 2012.

adesouza@panow.com