A new fee implemented by the City of Kelowna to create new parks is drawing the ire of developers and the local business community.

The new development cost charge (DCC) will see an additional $7,180 fee on every new residential condo or home, regardless of size.

The Kelowna Chamber of Commerce, Urban Development Institute and the Canadian Home Builders91裸聊视频� Association of the Central Okanagan all came out against the increase over the last three months while the city was developing the plan. All three groups issued a joint news release but only the chamber was present at a news conference on Tuesday morning.

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While parks are beneficial to the city, the issue of housing affordability in Kelowna still needs to be addressed, according to the chamber of commerce.

91裸聊视频淵ou91裸聊视频檇 be hardpressed to find someone in the business community that doesn91裸聊视频檛 think park development 91裸聊视频� or investing in park development 91裸聊视频� makes a whole lot of sense,91裸聊视频� said Nikki Csek, president of the Kelowna Chamber.

91裸聊视频淭he challenge that we have is specific to the funding strategy that is being implemented by city council. It91裸聊视频檚 at a time when the stated objective is to focus on housing attainability and we don91裸聊视频檛 think that this added cost will help with housing affordability.91裸聊视频�

She also cited a study entitled Straddling the Gap published by Generation Squeeze in 2019, which highlights the already unaffordable situation many young people find themselves in. The study showed that last year a millennial family had to increase its income by $16,930 to comfortably afford a new home in Kelowna.

91裸聊视频淏y endorsing this DCC increase, council has ensured that millennial income must grow even more in 2020,91裸聊视频� said Csek.

City staff said these costs would not be entirely passed on to homebuyers, but Dan Rogers, executive director of Kelowna Chamber of Commerce, said that likely wouldn91裸聊视频檛 be the case.

91裸聊视频淲hen you add cost at one end, there91裸聊视频檚 a payer at the other,91裸聊视频� he said.

91裸聊视频淭his will see an increase in new home prices in the future.91裸聊视频�

Developer and chamber director Ray Wynsouw is currently involved with two proposed housing projects but with additional costs imposed by the fee, they may not come to fruition.

91裸聊视频淚t creates (fewer) jobs and a downfall in our industry even further.91裸聊视频�

He also said despite the fee adding a one per cent increase on a $700,000 home; it91裸聊视频檚 a 100 per cent increase on currently implemented DCCs.

91裸聊视频淚t91裸聊视频檒l add another $36 to your monthly payments. With the stress being so tight for these young families to get into homes, that $36 could knock out we don91裸聊视频檛 know how many people.91裸聊视频�

Only two councillors voted against introducing the new parks DCC, Coun. Brad Sieben and Coun. Mohini Singh, who said she was torn on the issue.

City staff are now preparing the bylaw to send it to Victoria for approval and hope to have it in place in time to be implemented in January.

michael.rodriguez@kelownacapnews.com
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