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Home > Developing a Community > Standard Development Agreement
Developing a Community: Standard Development Agreement
The development industry is responsible for funding a large portion of growth-related infrastructure and services in the city of Calgary.
On an annual basis, The City of Calgary and UDI - Calgary negotiate the Standard Development Agreement (SDA), which details the developers' obligations to provide public infrastructure and make financial contributions in the form of fees and levies for the development of new subdivisions. In addition to funds acquired through the SDA, Front Ending Agreements provide an opportunity for The City to advance infrastructure projects with the direct participation of the development industry.
With this type of agreement, the developer agrees to finance a required infrastructure project through the payment of the interest charges on loans, allowing projects to proceed where capital budget priorities would not otherwise allow. Front ending agreements are becoming common place in the development of today's new communities.
Developing land, from its inception to a completed community, involves working with The City of Calgary through several stages/processes, some of which include:
- Outline plan
- Land Use Amendment
- Subdivision of the land
- Tentative Plan
- Development Permit application
- Building Permit
- Inspections
- Construction completion certificates
- Occupancy permits
These stages/processes can take a long time to complete and, as such, it can be several years before a developer will see a return on their investment. Few developers have the financial resources available to cover these 'up-front' costs and therefore most developers have investors or work out arrangements with financial institutions.
Not surprisingly, the costs associated with these levies add up to a significant amount of money (in the millions). Although much of this expense will eventually be passed along to the home builder and then to the new home purchaser (who will pay for it in the cost of the home and lot) it is up to the developer to pay for these costs up-front.
The final 2010 Development Agreements are posted on our Home page. You may also wish to refer to Information Bulletin #110 for a summary of the key changes made to the 2010 Development Agreements.
Inspection Fees
The inspection fees are updated on an annual basis, with the rate being determined as a percentage of the Construction Costs for the facility being inspected. A model has been agreed upon whereby Construction Costs, for a given facility, can be determined annually.
$2,326 per hectare
Traffic Signage and Road Markings Levy
The Traffic Signage and Road Markings Levy was established to cover the costs incurred by The City for the manufacturing and placement (including traffic control) of traffic signs and road markings in new subdivisions. The levy was established based on historical data obtained using the costs for signage and road markings of fully developed communities to obtain the per hectare rate. The levy is updated annually based on historical data of the previous year’s manufacturing and placement costs.
$646 per hectare
Community and Recreation Levy
The Community and Recreation Levy was established to collect funds for the construction of fire stations, police stations, EMS stations, regional recreation centers and area libraries, as well as the acquisition of transit buses, for new growth areas. No contributions go towards the other rolling stock and equipment required for these facilities.
$50,988 per hectare
Transportation Levy
The Transportation Levy is one of the offsite levies included in the Municipal Government Act that allows for the imposition of an offsite levy for new or expanded roads required for, or impacted by, a subdivision or development.
$66,910 per hectare
Storm Sewer Levies
In 2008, a Storm Sewer Acreage Assessment Working Committee was established, consisting of members of UDI – Calgary and City Administration to review the previous model, which used 46 different catchment areas. Agreement was reached to adopt a new model consisting of six new catchment areas based on long established watersheds. The new model will be easier to administer and will provide improved accountability and transparency. The levies have been calculated using a forecast of expenditures for projects that will be constructed by The City to accommodate growth. The levies will be used to fund new storm infrastructure required for Greenfield development and will NOT be used to fund retrofit projects. The following lists the per hectare levies based on catchment area:
- Bow River 2,423
- Nose Creek 16,120
- Elbow River 211
- Fish Creek 211
- Pine Creek 3,266
- Shepard 43,408
Oversize Funds for Major Roads, Community & District Parks and Utilities
In 2001, The City of Calgary and UDI – Calgary signed an agreement that created the “Developer Funded Infrastructure Stabilization Fund” (DFISF) commonly referred to as “oversize funds”. The purpose of the oversize funds is to reimburse land developers for providing infrastructure for roads, parks and utilities in excess of what is normally required for their development. The assessment allows the DFISF to fully recover its payments to developers. The DFISF is paid into by all developers of new subdivisions and is administered by The City on behalf of the development industry.
In 2010, the following Oversize levies were approved (no change from 2009):
Major Roads
The levy for Major Roads is updated on an annual basis, based upon the average annual payments made from the DFISF to developers for divided residential and undivided industrial major roads.
$11,800 per hectare
Community & District Parks
The levy for Community & District Parks is updated on an annual basis, based upon the average annual payments made from the DFISF for development of community and district parks.
$5,500 per hectare
Utilities
The levy is updated on an annual basis, based upon the average annual payments made from the DFISF to developers for "oversize" of water, sanitary and storm facilities.
$5,000 per hectare
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