The City of Vancouver has released an administrative report that provides information on Community Amenity Contributions (CACs) and Density Bonusing for 2014. These types of reports highlight some interesting market information. Of note, 2014 generated more than the previous two years combined, primarily as a result of the Oakridge Centre rezoning approval.

Here are few highlights:

• In 2014, there were 50 approvals of additional density resulting in a net increase in floor area of 6,500,000 SF and total public benefit in the amount of $234 Million.
• The rezoning of Oakridge Centre in May 2014 represents 60% of the density and CACs generated
• 80% of the public benefits are provided as on-site contributions, and 20% were cash in-lieu
• 95% of additional density approvals aligned with recently approved community plans
• The heritage density bank has been drawn down to 800,000 SF, a 50% decrease since the creation of new heritage transfer density was put on hold in 2009
• There were 14 approvals for secured market rental housing in 2014, or 1,073 apartment units

For those interested, the report provides a full list of all rezoning applications approved by Council in 2014 that generated additional density and public benefits.

The City of North Vancouver council will be considering a policy report outlining a formalized density bonus and community benefits policy that was expected after the adoption of the new Official Community Plan back in April.

If endorsed by Council, the new policy will apply to all rezoning applications that seek an increase in bonusable density within the OCP guidelines. The bonus system breaks down into two categories:

1. Category ‘A’ Bonus. An increase in density up to the OCP Schedule ‘A’ density, or effectively the baseline density for rezoning or sites that are already pre-zoned. The amenity contribution is $20.00 per SF of increased gross floor area above existing zoning.
2. Category ‘B’ Bonus. An increase in density that exceeds the OCP Schedule ‘A’ density, up to a maximum bonus amount set out in the OCP. This type of bonus would only be for rezoning of higher density. Within the Category ‘B’, there are four paths to providing the requisite benefits, as follows:
   1. Amenity Contributions (CACs) – $140 per SF of increased density in the Lonsdale area; $110 per SF outside this area. City reserves right to negotiate a different rate in unique circumstances.
   2. Secured Rental Housing – Bonuses will be permitted for properties where the new project is secured as 100% market rental; however, mixed rental and condo development will now not be permitted on existing rental apartment sites.
   3. Employment Generating Use – Bonuses for commercial uses above 1.0 FSR will not be charged a contribution.
   4. Heritage Conservation – Bonuses may be offered outside of this policy in unique circumstances.

For those not familiar, here is a depiction of the above Bonus categories:

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.