Provincial Press Release shortchanges Vernon's taxpayer contributions

Backgrounder: 4305 19TH AVENUE

4305 19^th Avenue in Vernon will provide 40 units of affordable housing, comprising 26 apartment units and 14 townhouse units for Vernon families at risk of homelessness, under the new Aboriginal Housing Initiative (AHI). The 0.95-hectare (2.348-acre) site is in a residential neighbourhood and is close to a shopping centre, two elementary schools, a secondary school, and bus service. Construction is expected to be complete in spring 2009 with occupancy anticipated for July 2009.

Partners and Funding
The capital cost of this project is $11,783,215

• The Province is providing a capital grant of $10,883,215 through AHI;
• The City of Vernon is providing reductions of property taxes *** and development cost charges in the amount of $400,000. The city will provide a 60-year lease to the society for a nominal amount (the land is valued at $900,000).

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Don Quixote Note: The Dev. Cost Charges for a 40 unit multi family project would be $10,303 per unit for Road and Sewer DCC's. The total DCC bill would have been $412,120.**

The DCC's for water and Parks were denied by GVSC. There are 40 units in question and Water DCC rates are $2180 per unit with Park DCC's are $3644 per unit. Total of $232,960.

** Effective June 10, 2008, New Development Cost Charge rates will apply in the City of Vernon. The new rates are a result of amendments to Development Cost Charges Bylaw #3769, as adopted by City Council on June 9, 2008. Key revisions are updated project costs, waiver of DCCs for non-profit rental housing and a decrease in the multi family rate to 60% of the single family rate to correct a previous charge inequity.

***Contrary to the release The City has not authorized any reductions of property taxes. Any such tax relief can only come after the units are on the tax rolls of the city and application is vetted through the taxation exemption committee each year.