Developing A Community: Who Pays?

Developing A Community Introduction Who Pays? Community Design & Maintaining Affordability Development Guidelines The Approval Process Why Does A Lot Cost A Lot?

A common misconception associated with the cost of land development in Calgary involves the issue of 'who pays?'. Many people are unaware that initially it will be the developer who pays for everything including: the stripping and grading of a site, the placement of services, the construction of roads, sidewalks, curbs and gutters, a range of municipal fees and assessment rates, consultant fees, and landscaping, just to name a few things. Not surprisingly, these fees can often add up to great sums of money, typically millions of dollars!

Although much of this great expense will eventually be passed along to the new home purchaser who will pay for it in the cost of the home and lot, it will be up to the developer to pay for these great costs up-front. Few developers have the financial resources available to cover these 'up-front' costs and, as such, most developers work out arrangements with financial institutions or have investors.

Finally, you will be interested to know that despite the great deal of money developers will pay in developing the site, it can take a significant period of time (often many years!) before developers see any return on their investment!