TAMRMS#: B06
13.1
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Front-End Development Costs
Notice given by: Councillor Hughes
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PROPOSED MOTION(S):
recommendation
That by Q2 2026 Administration draft or amend a Council Policy for Council’s approval related to the City’s position on front-ending the costs of development, outlining the circumstances under which the City will consider front-ending costs of development, and that Administration explore solutions to enable and encourage developers to front-end costs of development, including by researching what is done in other municipalities in Alberta, and present recommendations to Council by Q2 2026.
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ADMINISTRATION’S UNDERSTANDING OF THE INTENT OF THE MOTION
That by Q2 2026 Administration brings to Council recommendations on policy changes which will provide guidance to Administration on when the City will consider front-ending Offsite Leviable projects.
PURPOSE OF REPORT
The purpose of this report is to present a motion for which Councillor Hughes gave notice on November 5, 2024.
ALIGNMENT TO COUNCIL DIRECTION OR MANDATORY STATUTORY PROVISION
N/A
BACKGROUND AND DISCUSSION
The City has three policies relating to Offsite Levies and Debt:
C-P&E-08 Off-Site Levy Framework
C-FS-03 Debt Management
C-P&E-09 Off-Site Levy City Front Ending Prioritization Criteria
C-P&E-03 Off-Site Levy Framework provides a framework for the transparent, responsible and integrated administration of the City’s Off-site Levy Bylaw and the identified municipal infrastructure required to support the sustainable growth and development of undeveloped lands within St. Albert.
C-P&E-09 Off-Site Levy City Front Ending Prioritization Criteria policy identifies a three stage process for front-ending off-site leviable infrastructure. Once a project passes the first two stages, the third stage prioritizes the project based on several criteria:
a) Council Goals and Priorities
b) Supports Growth
c) Growth & Economic Development
d) Environmental Protection
e) Financial
Under the Financial criteria, points are awarded if partial funding is available through developer front-ending and funding is available through Council resolution. While the criteria provide a general guideline for front ending of projects, there are no specific guidelines around what developers should contribute, including minimums.
C-FS-03 Debt Management stipulates debt service limits for total debt but does not provide any direction or limitation on how much debt the City can use for offsite levy projects.
In developing a Long-Term Debt Funding Strategy, Administration revised the Debt Management Policy to provide debt servicing limits on debt. In the next phase of the strategy, Administration will assess how the City will support offsite levy projects in a financially sustainable manner. This will include a scan of other municipalities to review and provide options on best practices. This research will be done in 2025 and recommendations brought to Council by Q2 2026.
IMPACTS OF MOTION
Financial:
None at this time. The review will be done as part of the Long-Term Debt Strategy.
Compliance & Legal:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
Risks
None at this time.
ALIGNMENT TO PRIORITIES IN COUNCIL’S STRATEGIC PLAN
Long-Term Debt Strategy
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Long-Term Debt Management
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Report Date: December 3, 2024
Author: Suzanne Findlay
Department: Financial & Strategic Services
Department Director: Anne Victoor
Managing Director: Diane McMordie
Chief Administrative Officer: Bill Fletcher