Leaseholders will be paying different rates when adding a net-new development after council approved an updated bylaw on Tuesday (April 21).

Under the bylaw, residential developments will go from $1.93 per square foot to $4,286.36 per dwelling unit. The commercial rate ($2.57 per sq. ft.) and industrial rate ($1.27 per sq. ft.) will be combined into a single non-residential development rate of $5.53 per sq. ft.

An off-site levy is charged as a condition of development and allows the municipality to recoup the infrastructure costs of growth, specifically relating to water, sewer and stormwater.

While council gave third reading to the bylaw this week, the bylaw was primarily discussed during the March 24 public hearing.

Beth Sanders, director of Urban Design and Standards, said an updated bylaw was needed as the rebuild is expected to add net-new developments.

“What is for you to consider today is, how do we pay for that additional infrastructure over time?” Sanders told council at the hearing. “It’s a question for the financial health of the Municipality of Jasper over the next number of decades.”

The levy only applies to those building net-new development and not to those rebuilding their pre-existing properties from the 2024 wildfire. For those who already have their permits, the former bylaw’s rates will apply.

Town planner Marley Pollock said the bylaw was last updated in 2015. Since then, construction costs have increased significantly, and Jasper is seeing higher-density developments. The new bylaw will reflect today’s current costs.

Without off-site levies, the Municipality would have to pay for new and upgraded infrastructure either through the general tax base or utility rates.

“The infrastructure needs to be paid for somehow,” Pollock said. “The question is how do we pay for it.”

Pollock emphasized that the levy will only apply to residential properties that are adding a net-new unit. Non-residential properties will be charged based on net-new gross floor area. He added that rates were based on detailed engineering work from a third-party contractor.

A federally funded incentive program can provide Jasper residents with $30,000 for building a net-new accessory dwelling unit, which will cover the cost of the levy. One of the conditions is the unit must be a long-term rental for 10 years.

Jasperite Gilly Thomas, who presented during the hearing, asked what other fee structures were considered for off-site levies. She said a duplex that might accommodate a family of six may pay the same levy as a smaller suite for one or two people.

“The layout of this one being the same for everybody seems a little bit unfair,” Thomas said.

Coun. Laurie Rodger shared Thomas’s concerns, saying a bachelor suite could have the same levy as a three-bedroom duplex.

Sanders said the number of bedrooms or occupants was not a reliable measure of long-term infrastructure impacts, since the number of occupants could change over time. She added that charging per dwelling unit or square footage was the standard practice.

Mayor Richard Ireland said he was worried that people who hadn’t gotten their permits may have to pay a higher levy than those who were already rebuilding, and imposing this partway through the rebuild could be seen as unfair.

“A line in the sand is one thing, but a line in the ashes is quite a bit different,” Ireland said.

Sanders said off-site levies will only affect a minority of properties being rebuilt, and the majority of units that were building like-for-like will not be affected. As well, anyone can add more dwelling units anywhere in town and in the process are creating the potential for a significant revenue stream.

“If you don’t collect an off-site levy for those additional units, then what you are asking for [from] all other residents and taxpayers in town is to pay for that additional infrastructure,” she said.

Ireland ultimately supported the bylaw, saying the Municipality could look at solutions outside the bylaw, such as creating other incentive programs, if a lack of equity became an issue.

Peter Shokeir, Local Journalism Initiative // info@thejasperlocal.com