The City of Vancouver said Thursday it is reviewing its method of demanding extra payments from developers to help pay for non-traditional services such as daycare centres, heritage conservation, parks and social housing.

The review comes after the province issued new guidelines for how local governments assess community amenity contributions (CACs) that are tied to rezoning applications. Those guidelines were sparked in large part by concerns that Vancouver is using a method of calculation that could be seen as both coercive of developers and breaching long-standing rules against the selling of zoning in return for a benefit.

The city’s practice has been to seek what it calls “voluntary contributions” from developers that amount to 75 per cent of any profit they might generate from land that becomes more valuable through rezoning. In the most expensive of cases, that amounts to as much as $50,000 per-unit, compared to a more modest $1,200 per unit in Surrey.

By seeking “voluntary” payments the city retains a discretionary right to approve rezoning applications. The payment is different from legislated “development cost levies” that all applicants must pay for services such as sidewalks, water, roads and sewer connections. Vancouver said it obtained a legal opinion that the CACs are fair as long as they are made “voluntarily” by developers, who are told they are not a precondition of zoning approval.