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Old Posted Aug 22, 2020, 2:28 AM
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Originally Posted by officedweller View Post
You have to wonder whether the newcomers to the neighbourhood should be the only ones bearing the cost of the amenties provided by CACs (such as daycare centres, social housing, cultural amenities, etc.). Is the need for those facilities solely exacerbated by the new construction and residents? Or is it an extension of a NIMBY sentiment against change and a monetary trade-off or buy-in (that introduces a barrier to entry through high units prices)?
If you accept Genwhy's point that the market sets the price for new apartments (whether there's a CAC or not) the newcomers aren't bearing the costs. The developers are bearing the costs, and they ought to be paying less for the land as a result. If there were no CACs land values would probably be even greater.

CACs aren't the only source of funding for new facilities, they're just one source. Most renewals and many upgrades of existing public facilities are paid out of the capital element of the City's budget - the part that has to be approved at each municipal election. Other growth related facilities are paid for with Development Cost Levies - DCLs - paid be almost every development project. (Only some rezonings pay a CAC). For example, Emery Barnes Park was initially acquired, and then expanded, with DCLs collected over many years in Downtown South. The new Richards Street Park site was acquired by the City, but the construction is funded from a CAC offered by Westbank for the Telus Garden condos.
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