Off-Site Levy Rates

It depends.

Contact Planning and Development to confirm what levies apply based on the specifics of your proposal.

The rates are calculated on a per hectare basis on the levy area. There are three offsite levy rates – water, sanitary sewer and transportation – for each area. Whether all three rates are applicable depends on whether the development is connected to municipal systems. The amount of land that the levy will apply to depends on the specific details of the development. The off-site levy is not applied to environmental reserve land, municipal reserve land or land for a road.

Examples

The examples below are meant to illustrate some of the ways that the OSL policy influences when the levies apply and are owing. They are provided for example only and do not bind the Town to a specific interpretation of the policy. 

Proposal 1: To develop 1 house on an unserviced 16-hectare parcel.

Assumptions: Applicability Threshold 8.19 and 8.20 of the OSL Policy apply.

Bottom line: The minimum levy where 8.19 and 8.20 apply would be a transportation levy based on 0.1 hectares, if the yard site (including the driveway) is 0.1 hectares or less. If the yard site of the development is larger than 0.1 hectares, then the levy would correspondingly be larger as well (e.g. 0.5 hectare yard site).

Proposal 2: Subdivide 10-hectare parcel into 2 equal size parcels.

Assumptions: Applicability Threshold 8.15 of the OSL Policy applies.

Bottom line: The levies do not apply at subdivision. The subdivision can be registered at land titles without the payment of an OSL.

Proposal 3: Subdivide 10 hectare parcel into one 2 hectare lot and one 8 hectare parcel, and develop at house on the 2-hectare parcel.

Assumptions: Applicability Threshold 8.15 and 8.20 of the OSL Policy applies.

Bottom line: Per 8.15, the offsite levy may not apply at subdivision. At development the levy would apply to a minimum of 0.1 hectares, up to the full 2 hectares depending on how the parcel is developed. If the parcel is connected to all municipal services, then all three levies will apply. If the parcel has onsite water and sanitary sewer, then only the transportation levy will apply.

Proposal 4: Develop a restaurant in an existing building that was previously a retail store.

Assumptions: Applicability Threshold 8.18 of the OSL Policy applies.

Bottom line: The OSL does not apply for a development permit that changes of the use of an existing building.

Proposal 5: To demolish an old house and develop a semi-detached building with 2 dwellings on a parcel.

Assumptions: Applicability Threshold 8.9 of the OSL Policy applies.

Bottom line: The OSL does not apply.

Off-site levies become owing only at subdivision approval or before a development permit is issued. The off-site levy must be paid before the start of a development or prior to subdivision registration at the Land Titles Office.

There are some subdivision and development permit situations where no off-site levy applies.

Over the last decade the Town has heard the critique that the levy makes developing in the Town more difficult. We acknowledge that the levy is an additional cost on the developer. The intent is that the levy will cover the additional cost of development on the Town, so that the existing rate payers are not required to pay for costs created by new development.

Over the last decade the Town has worked to improve the assumptions that influence that off-site levy model, which is used to determine the levy rates. Through this process, levy rates have decreased from a high of $83,355 / hectare (approximate weighted average rate) in 2016 to the current rate of $37,297 / hectare (approximate weighted average rate).

Table 2 Off-site levy rates since 2014

The Town has also improved the policy, which identifies subdivision and development situations where the levies do not apply.

The Town has had an off-site levy bylaw since the late 1970s. Removing the off-site levy would create legal and financial risk to the Town.

The Off-site levy model covers all areas of the town.

The Town of Peace River cannot register a caveat for such a purpose.

If you want to know whether an off-site levy payment will be required for a particular development or subdivision, contact the Planning Department at 780-624-2574.

Levy rates are updated every second year. The next rate update is expected in 2023.

Off-site levies only apply at subdivision or development. If you are not undertaking one of those processes, the levy won’t becoming owning through other processes. Each levy can only be levied once. I.e. once the transportation off-site levy is paid, a future subdivision or development will not “retrigger” another transportation off-site levy.