The City of Nanaimo (City) is in the process of updating Development Cost Charge Bylaw 2017, No. 7252. The Development Cost Charges (DCC) Bylaw was last updated in 2018. The City is also in the process of developing a new Amenity Cost Charges (ACC) Bylaw; Nanaimo does not currently have an ACC program in place. To date, the City has prepared materials for both programs that includes the proposed projects, costs, and rates.

June 23, 2025: The draft DCC and ACC rates were presented at the June 23, 2025 Governance and Priorities Committee meeting (find the Meeting Package here).

A public open house for the proposed DCC and ACC programs will be held on October 9, 2025, from 4:00-7:00pm at the Beban Park Social Centre (2300 Bowen Road). The open house will include information on both programs, a project timeline, and the opportunity to speak with the project team and provide feedback.

All are welcome: advance registration is not required for the open house, nor is any prior knowledge of DCCs or ACCs.

DCCs are fees collected to help communities recover the costs of off-site infrastructure needed for growth. They are based on the principle of cost-sharing infrastructure between existing taxpayers and new development. They are a Provincially regulated tool; the Local Government Act sets out the general requirements under which local governments may administer DCC programs.

Funds generated through DCCs are intended for one-time capital costs (planning, engineering, design, legal, studies) and can only be used to fund growth-driven projects within the following categories:

• Transportation services
• Water services
• Drainage services
• Sanitary services Parkland acquisition and improvements
• Fire protection facilities
• Police facilities
• Solid waste and recycling facilities

DCCs cannot be used for projects that serve the existing population (i.e., deficiencies, asset replacement) or for operations and maintenance costs. DCCs also cannot be used for projects otherwise eligible for ACCs.

ACCs are fees collected to help communities finance amenities such as community centres, recreational facilities, libraries, daycares, and public spaces. These amenities support liveable and complete communities in areas of growth. They are a Provincially regulated tool; the Local Government Act sets out the general requirements under which local governments may administer ACC programs.

DCCs and ACCs impact individuals and organizations whose developments increase demand on City utilities and services, such as through the addition of new units or the construction of new developments. Residents do not pay these charges on their existing homes. However, DCCs and ACCs are cost-sharing mechanisms: depending on how costs are shared between new growth and existing residents, the proposed DCC and ACC programs may impact general taxation and, by extension, City residents.

DCCs and ACCs are paid by applicants/developers at the time of:

• Subdivision, for approval to create new single-family lots (Low Density Residential); or,
• Building Permit, upon application to construct Medium or High Density Residential, Commercial, Industrial, or Institutional developments

DCCs and ACCs are collected on a per lot or per dwelling unit basis for Low Density Residential and on a per unit basis for Medium Density Residential, and High Density Residential. Non-residential (Commercial, Industrial, and Institutional) uses will be collected per square metre of gross floor area.

The proposed DCC and ACC rates outlined below assume a 1% Municipal Assist Factor (MAF) for all programs except water supply and police services (25%).

Please note the City is proposing to create an Area-specific Transportation DCC applicable to properties within the South Nanaimo area. This DCC captures projects that will specifically benefit existing and future residents in the area. All new or expanded properties within this area are expected to pay both the proposed City-wide and Area-specific DCCs. Existing residents are not required to pay these charges.

When a new DCC Bylaw and/or ACC Bylaw is enacted, an existing development application submitted prior to the adoption of the new Bylaw(s) is granted 12-month in-stream protection.

In-stream protection will apply to both building permit and subdivision applications received prior to the adoption of any new DCC Bylaw and/or ACC Bylaw. Protection is also extended to rezoning and development permit applications that were submitted prior to the adoption of any new DCC and/or ACC Bylaw and that will result in a building permit within 12 months of bylaw adoption. If an application meets the required criteria of being submitted prior to the adoption of the new DCC Bylaw and/or ACC Bylaw, it is provided protection from rate increases.

The below table identifies instances when DCCs are not payable:

The below table identifies instances when ACCs are not payable:

Under the Local Government Act, a local government may opt to impose a Bylaw through which DCCs, or ACCs may be waived or reduced. DCC waivers or reductions can be provided in support of development resulting in the creation of affordable rental housing or reduced environmental impact. ACC waivers or reductions can be provided in support of affordable rental housing and low-impact development.

The City of Nanaimo Development Cost Charge Bylaw 2017, No. 7252, contains a provision allowing for a 50% DCC reduction for not-for-profit rental housing when at least 30% of the units are secured with a housing agreement, such that rent does not exceed 30% of before-tax income.

In the case of any waivers or reductions provided, the amount waived or reduced is to be entirely supported by the City.

Poul Rosen, Director of Engineering

City of Nanaimo

poul.rosen@nanaimo.ca