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2011-01-10 Workshop Meeting Agenda and Reports.pdf
District of Maple Ridge COUNCIL WORKSHOP AGENDA January 10, 2011 9:00 a.m. Blaney Room, 1st Floor, Municipal Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. REMINDERS January 10 Closed Council 11:15 a.m. Committee of the Whole Meeting 1:00 p.m. January 11 Council Meeting 1. ADOPTION OF THE AGENDA 2. MINUTES -December 13, 2010 3. PRESENTATIONS AT THE REQUEST OF COUNCIL 4. UNFINISHED AND NEW BUSINESS 7:0❑ p.m. 4.1 Appeal of Orders Issued Pursuant to Maple Ridge Regulation of Untidy and Unsightly Premises Bylaw No. 6533-2007, 22296 136 Avenue -Thu Dinh Reconvening of hearing of the November 22, 2010 Council Workshop Meeting 4.2 2011 Property Assessment Review and 2010 NAIOP Office Development Survey Results Staff report dated January 5, 2011 providing an overview of the 2011 Property Assessment Information received from BC Assessment (BCA) and providing comments on the 2010 NAIOP Office Development Survey results. Council Workshop January 10, 2011 Page 2 of 4 4.3 Albion Dyking District and Maple Ridge Road 13 Dyking District Staff report dated January 5, 2011 providing an update on the discussions between District of Maple Ridge staff and the Province pertaining to the assumption of responsibility for the Albion Dyking District and the Maple Ridge Road 13 Dyking District. 4.4 Request for Extension of Deadline for Funding of Projects - Downtown Road and Utility Rehabilitation Project and Albion Dike Upgrade Staff report dated January 5, 2011 recommending a request to the Provincial Government for a one-time extension of the deadline for the funding of projects under the Building Canada Fund - Communities Top -Up from March 31, 2011 to October 31, 2011. 4.5 Extension of Infrastructure Projects under the Economic Action Plan - North Alouette River Greenway and Vernon Bridge Crossing Staff report dated January 5, 2011 recommending a request to the Provincial Government for a one-time extension of the deadline for the funding of projects under the Infrastructure Stimulus Fund from March 31, 2011 to October 31, 2011. 4.6 "The Great British Columbia Shake Out" Earthquake Drill Verbal presentation by the Manager of Legislative Services and Emergency Program 4.7 Grant Narrows Update Verbal update by the General Manager of Community Development, Parks and Recreation Services Council Workshop January 10, 2011 Page 3 of 4 5. CORRESPONDENCE The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: a) Acknowledge receipt of correspondence and advise that no further action will be taken. b) Direct staff to prepare a report and recommendation regarding the subject matter. c) Forward the correspondence to a regular Council meeting for further discussion. d) Other. Once direction is given the appropriate response will be sent. 5.1 6. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 7, MATTERS DEEMED EXPEDIENT 8. ADJOURNMENT Checked by: Date: Council Workshop January 10, 2011 Page 4 of 4 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: (a) personal information about an identifiable individual who holds or is being considered fora position as an officer, employee or agent of the municipality or another position appointed by the municipality; (b) personal information about an identifiable individual who is being considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; (c) labour relations or employee negotiations; (d) the security of property of the municipality; (e) the acguisition..disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; (f) law enforcement, if the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; (g) litigation or potential litigation affecting the municipality; (h) an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council (i) the receiving of advice that is subject to solicitor -client privilege, including communications necessary for that purpose; a) information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (1) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] (m) a matter that, under another enactment, is such that the public may be excluded from the meeting; (n) the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) (o) the consideration of whether the authority under section_ 91 (other persons attending closed meetings) should be exercised in relation to a council meeting. (p) information relating to local government participation in provincial negotiations with First Nations, where an agreement provides that the information is to be kept confidential. MAPLE RIDGE Deep Roots Greater Heights TO: FROM: SUBJECT District of Maple Ridge His Worship Mayor Ernie Daykin and Members of Council Chief Administrative Officer DATE: January 05, 2011 ATTN: Council Workshop 2011 Property Assessment Review & 2010 NAIOP Office Development Survey Results EXECUTIVE SUMMARY: Property Assessment information for 2011 was received from BC Assessment (BCA) on January 2, 2011. This information is preliminary as property owners still have the opportunity to appeal their assessments. The purpose of this report is to give Council a sense of the 2011 assessment information as it currently appears. A few months ago, we gave Council an analysis of the 2009 Industrial Development Cost Survey completed by NAIOP, a commercial real estate development association. A few weeks ago, NAIOP issued its 2010 Office Development Cost Survey. Our comments on this latest survey are included in this report. RECOMMENDATION: No resolution required; receive for information only. DISCUSSION: 2011 Property Assessments For the purpose of valuation, BC Assessment bases 2011 property assessments on market conditions as at July 1, 2010. The changes in the assessment roll are generally comprised of two components: 1. Market value fluctuations 2. Real growth due to new construction For taxation purposes, properties in Maple Ridge are classified into seven classifications which include Residential, Utilities, Major Industry, Light Industry, Business and Other, Recreational/Non- Profit, and Farm Land. The majority (91%) of Maple Ridge's property assessment base is in the Residential Class. n w� In 2009, market values in the Residential Class decreased by 4% while values in the Commercial Class increased by about 5%. According to BCA, market values have increased since their last valuation date. As a result, residential properties have increased by an average of 5.5%. By contrast, market values in the Commercial and Light Industrial Classes have increased by an average of just under 2%. Decisions concerning the municipal budget are made independent of market value fluctuations in property values and these fluctuations therefore have minimal impact on our process. As in past years, municipal tax rates will be: i) adjusted to offset average market value increases/decreases in each class ii) increased based on the tax increase included in the approved financial plan As a result, properties that experience value changes above the average for their class will experience higher than average tax increases and properties that experience value changes below the average will experience lower than average tax increases. It is important for citizens to keep in mind that their own tax experience will vary based on the assessment change for their property in relation to all other properties in the same class. For example, if the average market value assessment change for the residential class is an increase of 6% and an individual property experiences an assessment increase of 12%, this property will experience a higher than average tax increase. Similarly, a property decreasing in assessed value by 6% will experience a considerably lower tax increase. To demonstrate this variability from property to property, we have been tracking the taxes assessed against a sample of properties for a number of years and the data from that analysis is attached in Appendix "A". The data is illustrative in nature as we do not yet know what the tax increases will be from the other agencies. In this example, we have assumed a 4% increase. While the impact to the average home amounts to an overall municipal tax increase of approximately 6%, there is significant variation from this average. On the low end, the sample property in Lower Hammond (Sample 7) in 2011 will pay a municipal tax amount similar to what was paid in 2010. At the other end of the spectrum, the sample property in the Silver Valley area (Sample 1) will experience a 12% municipal tax increase. This variation in tax impact is the direct result of the assessment increase experienced by each individual property. This is why citizens should review their assessment notices closely and any questions or concerns should be referred to BC Assessment. Property assessments can be appealed through BC Assessment. The due date for filing appeals is January 31, 2011. Property taxes cannot be appealed. The second major component of the change in the assessment roll is due to new construction. Council will recall that in the financial plan, we budgeted for growth from new construction at 2.35%. The preliminary assessment information suggests that real growth is about 1.75% which translates into a revenue shortfall of about $300,000. Council will recall that a contingency has been provided for this in our financial plan. While overall new construction is approximately 1.75%, it is not uniform across all property classifications. The Residential Class grew by 2%, while the Commercial Classes had growth of only 1.25%. It is important to note that Council has approved a series of incentives to encourage development in the Town Centre. Those incentives include tax exemptions for qualifying properties and this will impact future years' growth revenues. Page 2 of 10 NEIGHBOURHOOD ANALYSIS The following is a brief look at the effects of growth on assessments by neighbourhood throughout the District to give Council a sense of how these changes impact individual areas. Residential Properties: Approximately 91% of folios in Maple Ridge are classed wholly or in part as residential. While the total growth factor in the Residential Class is 2%, specific neighbourhoods continue to contribute to the bulk of that increase. Neighbourhood Silver Valley/Fern Cres Kanaka Creek Whonnock Cottonwood/Albion Strata Units All other neighbourhoods Growth Contribution % of to Assessment Base Total Growth $ 61,551,900 29% $ 25,669,800 12% $ 24,615,900 11% $ 15,297,300 7% $ 79,029,602 37% $ 8,762,800 4% Though the average market value in the Residential Class increased by 5.5%, the change in market value for specific areas varies. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios 4% 12% 61% 17% 6% T Average Home 2011 The following information provides a sense of the impact of assessment changes experienced in specific neighbourhoods. Haney Residential Boundaries: S - Lougheed; W - Burnett and 224; N - 124A, 125, 128; E - 234 and 235 This area is comprised of mostly single family homes which are 30 years or older. New construction in this area is limited. The neighbourhood represents 11% of the District's overall residential inventory. The average home in this area, valued at $390,500 in 2010 and paying $1,528 in municipal taxes, has increased in value by 8% and will experience a general purposes tax increase slightly higher than 5%. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios Nil 1% 87% 12% nil% T Average Home 2011 Page 3of10 Kanaka Creek Boundaries: S, SW - Lougheed; N - Kanaka Way and 128; E - 248 This area comprised mostly of single family homes continues to develop contributing 12% to the overall residential growth in 2011 and represents approximately 8% of the District's overall residential inventory. The average home in this area, valued at $447,000 in 2010 and paying $1,783 in municipal taxes, has increased in value by 10% and as a result will also experience a general purpose tax increase higher than the average 5%. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios nil 1% 70% 29% nll% T Average Home 2011 Silver Valley and Fern Cres. Boundaries: S - 128; N - Silver Valley Rd; W - Marc Rd. & 224; E - 264 This area makes up approximately 7% of the District's overall residential inventory and at 29% of the overall growth continues to be the biggest contributor. It is comprised of mostly single family homes some of which are on large lots and acreages. The average home here, valued at $572,000 in 2010 and paying $2,240 in municipal taxes has also increased in value by 10%. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% % of folios 1'I, 7% 89% T Average Home 2011 Whonnock and Ruskin Boundaries: S - Lougheed; N - 132; W - 248; E - 287 over 25% nil% This is an old established rural neighbourhood made up of large residential lots and acreages and just under 10% of properties in this area enjoy farm status. The average home in this area was valued at $583,000 in 2010, paid $2,300 in municipal taxes and is now assessed at $614,000, an increase of approximately 5% and will likely experience a general purposes tax increase of about 5%. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 2% 1.2'1. 49% 37% nil% T Average Home 2011 Page 4 of 10 Strata Townhouses There are now 3,464 properties in Maple Ridge which are classed as residential strata townhouses, 168 of which are new this year. At 4%, the market increase for these types of properties is slightly less than the overall average. The average townhouse assessed in 2010 at $281,000 and paying $1,100 in municipal taxes now has an average assessment of $290,000 and will likely be experiencing a tax increase slightly below 4%. Percentage of Change in Assessment Under -5% -5% to 0% 1%-10% 11% - 25% over 25% % of folios 6% 12% 67% 15% nil% T Average Home 2011 Strata Apartments There has been no growth in this type of housing and the number remains at 2,505 units. Average market value for these types of units increased by less than 1% in 2010. The average apartment which was assessed in 2010 at $207,000 and paid $810 in municipal taxes is now assessed at $209,000 and will see the average increase of the municipal portion in the neighbourhood of 2%. Percentage of Change in Assessment Under-5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 11% 44% 35% 10% nil T Average Home 2011 Business Class and Light Industry Class Of the 28,000 folios which make up Maple Ridge, 4% of properties fall into the Business and Light Industry Classes. The contribution to the assessment base growth by these two classes is about 1.25% and a breakdown of this growth follows: Neip-hbourhood Core Commercial East side Whonnock Industrial West side Commercial All other areas Growth Contribution % of to Assessment Base Total Growth $ 8,439,500 70% $ 1,637,000 14% $ 1,239,100 10% $ 733,600 6% The large increase in growth for Core Commercial East side is mostly attributable to two new strata developments, one at 229 Street and Dewdney Trunk Road, the other at 223 Street and Lougheed Highway. The continuing development of the Kanaka Business Park accounts for the growth in the Whonnock Industrial area. The growth in the West side Commercial area includes the completion of the business complex at 206 Street and Lougheed Highway. Page 5 of 10 The average market value increase in the Business Class is 3% and 3.5% in the Light Industry Class. Business Class Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 4% 59% 23% 6% 8% T Average 2011 Light Industrial Class Percentage of Change in Assessment Under-5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 11% 53% 21% 13% 2% T Average 2011 The following information is intended to give an idea of what is occurring in some of the more concentrated areas for these classes. Maple Ridge Industrial Park This area represents 21% of Business Class folios. These are mostly commercial strata units and some warehousing facilities with about 5% of the lots being vacant. Average market increase for properties in this area is 1.6% and tax increases for most properties in this area will be near or below the District average. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 0.5% 6% 87.5% 6% nil T Average 2011 There are 99 folios in this Industrial park that are classed Light Industry, 8% of which share Business/Light Industry classification. These 99 lots make up 48% of all Light Industry lots in Maple Ridge and represent 52% of the Light Industry Assessment base. Average market change is a decrease of 1% meaning tax increases will be lower than the District average. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11% - 25% over 25% % of folios 13% 47'/, 14% 24% 2% T Average 2011 Page 6of10 Albion industrial This area represents 4% of Business Class folios. Average market increase in this area is 1%. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios nil 82% 15% nil 3% T Average 2011 Light Industry folios in this area account for 18% of the folios in this class and represent 24% of the overall Light Industry assessment base. 11% of the folios in this area share Business/Light Industrial classification. The average market increase attributable to the Light Industry portion is less than 1% and the average folio's assessment is $1,305,000. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios 3% 73% 21% 3W, nil T Average 2011 The market values in this neighbourhood for both classes increased below the District average and as a result the majority of properties here will see a lower than average tax increase. Lougheed Commercial. West of 207 This area represents only 11% of Business Class folios in number, but 29% of total Business Class assessments. The average market increase in this area is less than 1% well below the District average of 3%. As a result tax increases experienced by most properties in this area will also be below the District average. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios 2'% 65% 31'1, 1°I, 1% T Average 2011 Whonnock Industrial This area is made up of businesses associated with the lumber industry, and as of 2010 included two new Business Parks. It represents 10% of Commercial folios and accounts for 7% of the combined Business and Light Industry assessment base. The average folio assessment is $567,000. The average market increase in this area is higher than the average and properties may experience higher than average tax increases. Percentage of Change in Assessment Under -5% -5% to 0% 1% -10% 11%-25% over 25% % of folios nil% 43% 17% 40% nil T Average 2011 Page 7 of 10 NAIOP Office Development Cost Survey A few months ago, Council received a staff report on NAIOP's 2009 Industrial Development Cost Survey. A few weeks ago, NAIOP released its 2010 Office Development Cost Survey which is based on data submitted by municipalities. The survey is based on the following development scenario: • Subject property is currently not subdivided, zoned residential and 2.5 acres. • Development proposal is for a 2 storey 50,000 square foot office building, with an interior lot with 295 feet of frontage on dedicated municipal roadway. Net size will be 2.0 acres after road and other dedications. • Required municipal processes are rezoning, subdivision, a development permit and a building permit. • Construction Costs are $132 per square foot for the building ($6,600,000); $12 per square foot for site improvements ($600,000); and, $600,000 for street and drainage improvements. Municipalities were asked to provide information on their approval times and development costs for such a project. While some of the data is empirical as it is obtained from fee schedules and municipal bylaws, other data that is time framed is more subjective, dependent on the party providing the data, and it is hard to verify. Approval Times The approval times are provided to NAIOP by each individual municipality and include pre -application time as well as time for the rezoning, development permit, subdivision approval and building permit processes. While some of the time is under the control of the municipality, a portion of the time is dependent on the time that the applicant takes to fulfill his requirements. The data we supplied is based on our experience over the years and reflects our estimate of the time required to complete the process, including the time taken by developers to complete after third reading. Whether other municipalities use the same methodology is not clear. The veracity of these timelines would be borne out by feedback from the development community to NAIOP. Time Ranges vs Absolute Times Municipalities choose to submit the processing timeline in different ways. Some provide an absolute time whereas others submit a range of timelines. Maple Ridge submits a range based on its experience in that no two applications are the same. For straight forward applications, we estimate a processing timeframe of 120 days. For complex applications or applications where outside agencies are involved beyond the control of the applicant or municipality, a file may take up to 210 days to complete. The time estimates for the surveyed municipalities ranged from a low of 90 days in Abbotsford and Chilliwack, to a high of 270 days in New Westminster, Vancouver and West Vancouver. Maple Ridge estimated that it would take 120 to 210 days to complete depending on the issues and complexity of the project. On the summary chart in the NAIOP report, however, the lesser time of 120 days is ignored while the timeframe for more complex projects is used. This provides an inaccurate ranking for those municipalities that have chosen to provide a range of times rather than an absolute. Using a range of timeframes as the true measure, Maple Ridge's timeframes are in the ballpark with the majority of Metro Vancouver municipalities. Page 8of10 In the 2010 survey, four municipalities' approval time estimates increased from what was reported in 2008: Pitt Meadows' increased to 150 days from 120 days; Port Coquitlam's increased to 180 days from 150 days; New Westminster's increased to 270 days from 210 days; and West Vancouver's was reported to be increased to 270 days from 180 days. Two municipalities' time estimates decreased from what was reported in 2008: Coquitlam's to 150 days from 180 days; and, the City of North Vancouver to 240 days from 270 days. ii. Municipal Development Fees Development Fees, which include Development Cost Charges (DCCs), range from a low of $137,815 in Burnaby, to a high of $668,623 in Richmond. Maple Ridge's fees are quoted at $267,520 which was the seventh lowest. Burnaby does not have local Development Cost Charges for this type of development while in other municipalities, these charges range from a low of $33,500 in New Westminster to a high of $561,000 in Richmond. Maple Ridge's DCCs quoted at $163,428 are in the lower half of municipalities. DCCs reflect the cost of additional offsite infrastructure that must be provided as a result of development. This is why DCCs vary, depending where a community is in its development cycle. Communities with more established development patterns will generally have lower DCCs than those developing in growth areas. The following table looks at the fees alone, after taking out the DCCs: Municipality Fees Rank DCCs Rank Fees Rank net of DCCs Burnaby $ 137,815 1 $ 0 1 $ 137,815 13 City of White Rock $ 138,176 2 $ 62,893 4 $ 75,283 2 New Westminster $ 148,726 3 $ 33,500 2 $ 115,226 10 Pitt Meadows $ 195,031 4 $ 115,298 5 $ 79,733 3 Chilliwack $ 198,634 5 $ 132,197 7 $ 66,437 1 Port Moody $ 215,327 6 $ 55,154 3 $ 160,173 18 Maple Ridge $ 267,520 7 $ 163,428 8 $ 104,092 5 Delta $ 287,000 8 $ 124,506 6 $ 162,494 19 District of North Vancouver $ 317,513 9 $ 174,856 9 $ 142,657 14 Port Coquitlam $ 324,580 10 $ 187,525 10 $ 137,055 12 West Vancouver $ 337,375 11 $ 229,900 12 $ 107,475 6 Township of Langley $ 360,587 12 $ 252,835 13 $ 107,752 8 Langley (City) $ 361,239 13 $ 214,699 11 $ 146,540 15 Mission $ 375,658 14 $ 283,252 16 $ 92,406 4 Coquitlam $ 391,437 15 $ 280,697 15 $ 110,740 9 City of North Vancouver $ 425,638 16 $ 266,402 14 $ 159,236 17 Abbotsford $ 484,731 17 $ 357,962 17 $ 126,769 11 Vancouver $ 539,499 18 $ 385,000 19 $ 154,499 16 Surrey $ 568,513 19 $ 361,500 18 $ 207,013 20 Richmond $ 668,623 20 $ 561,000 20 $ 107,623 7 If we remove the impact of DCCs, the ranking of some municipalities changes drastically. For instance, Burnaby, which is shown to have the lowest fees inclusive of DCCs, drops to 13th in ranking. Maple Ridge drops to 5th from 7th lowest in rank after the DCCs have been removed. The report also looked at the percentage change in fees since 2000 and concluded that Maple Ridge Page 9 of 10 fees increased by 109%. We do not have the details behind the 2000 numbers but surmise that a large portion of the increase is attributable to DCCs. This should be expected as the cost of construction increased very significantly over the time period covered by the survey. It is interesting to note that only nine municipalities had smaller increases than Maple Ridge. The report also looked at the percentage change in fees since 2008, and concluded that Maple Ridge fees actually decreased 4%, the largest decrease of all the surveyed municipalities. Only three other municipalities realized decreases from 2008 White Rock and Abbotsford both with decreases of 1% and Pitt Meadows with a 2% decrease. The highest increase since 2008 was 72% and this was in Port Moody. CONCLUSIONS: Though the assessment information is preliminary, it does give an indication of how assessments have changed since the last valuation. While the average assessment changes in all property classes are quite modest, there is some variability around this average. As a result, the property tax impact to individual properties will vary, depending on how their experience relates to the average. Property owners are encouraged to review their assessment notices closely as the deadline for appeals to BC Assessment is January 31, 2011. With respect to the information provided by NAIOP, our development fees are competitive and our development processing times are in line with the majority of municipalities surveyed. Prepared by: Silvia Rutledge Manager of Revenue & Collections s Prepared by: Jbp4uie Mrgmann Research Technician Approved by. Pa Gill, BBA, CGA General Manager: or rate & Financial Services r Concurrence' J.L. (Jim) Rule Chief Administrative Officer Attachment: Appendix A - Sample Tax Properties Attachment: Appendix B - NAIOP 2010 Office Development Survey Page 10 of 10 Appendix A - Sample Tax Properties 7_dinyiG S - 'lll V Cf Y Allcy 2011 Assessed Value: 746,000 2010 Assessed Value 656,000 2011 2010 Change % Percentage Change: 13.72% Municipal Council Levies: Gen Purpose, Debt & Library Levy 2,656 S 2,370 $ 286 12.1 % Fire Services Improvement Levy 247 197 50 25.4% Recycling Levies 64 62 2 3.2% Utilities 414 380 34 8.9% 3,381 3,009 372 12.4% Outer Agency Levies *: Other Agency Levies * 379 338 41 12.1 % School Tax * 1,508 1,383 125 Less: Home Owner's Grant 570 570 - 938 813 125 15.4% Total Taxes S 4,698 S 4,160 538 12.9% Sample 2 - Albion I Kanaka 2011 Assessed Value: 544,000 2010 Assessed Value 489,000 2011 2010 Chan-ae % Percentage Change: 11.25% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 1,937 $ 1,767 $ 170 9.6% Fire Services Improvement Levy 180 147 33 22.4%r• Recycling Levies 64 62 2 3.2% Utilities 699 653 46 7.0% 2,880 2,629 251 9.5% Other Agency Levies *: Other Agency Levies * 276 252 24 9.5 % School Tax * 1,099 1,031 68 Less: Home Owner's Grant 570 570 - 529 461 68 14.8% Total Taxes S 3.685 g 3,342 343 10.3%a Sg lle 3 - Whonnock 2011 Assessed Value: 518,000 2010 Assessed Value 487,000 2011 2010 Change % Percentage Change: 6.37% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 1,844 S 1,759 S 85 4.8% Fire Services Improvement Levy 172 146 26 17.8% Recycling Levies 32 31 1 3.2% Utilities - - - 0.0% 2,048 1,936 112 5.8% Other Agency Levies *: Other Agency Levies * 263 251 12 4.8% School Tax * 1,047 1,027 20 Less: Home Owner's Grant 570 570 - 477 457 20 4.4% Total Taxes $ 2,788 $ 2.644 144 5.4% Sample 4 - Central Maple Ridge 2011 Assessed Value: 418,000 2010 Assessed Value 384,000 2011 2010 Change % Percentage Change: 8.85% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 1,488 $ 1,387 $ 101 7.3% Fire Services Improvement Levy 138 115 23 20.0% Recycling Levies 64 62 2 3.2% Utilities 699 653 46 7.0% 2,389 2,217 172 7.8% Other Agency Levies *: Other Agency Levies * 212 198 14 7.1 % School Tax* 845 809 36 Less: Home Owner's Grant 570 570 275 239 36 15.1 % Total Taxes $ 2,876 $ 2,654 222 8.4% Sample 5 - Central Maple Ridge Strata Property 2011 Assessed Value: 243,000 2010 Assessed Value 236,500 2011 2010 Change % Percentage Change: 2,75% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 865 $ 854 S 11 1.3% Fire Services Improvement Levy 81 71 10 14.1% Recycling Levies 32 31 1 3.2% Utilities 699 653 46 7.0% 1,677 1,609 68 4.2% Other Agency Levies *: Other Agency Levies * 123 122 1 0.8% School Tax * 491 499 (8) Less: Home Owner's Grant _ 570 570 - (79) (71) (8) Total Taxes S 1,721 $ L,660 Sample 6 - West Maple Rid e 2011 Assessed Value: 610,000 2010 Assessed Value 579,000 2011 2010 Change 0/0 Percentage Change: 5.35% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 2,172 $ 2,092 $ 80 3.8% Fire Services Improvement Levy 202 174 28 16.1 % Recycling Levies 64 62 2 3.2% Utilities 699 653 46 7.0% 3,137 2,981 156 5.2% Other Agency Levies * Other Agency Levies * 310 298 12 4.0% School Tax * 1,233 1,221 12 Less: Home Owner's Grant 570 570 663 651 12 1.8% Total Taxes $ 4,110 $ 3,930 180 4.6% Sample 7 - Lower Hammond Property 2011 Assessed Value: 219,100 2010 Assessed Value 224,300 2011 2010 Change % Percentage Change: -2.32% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 780 $ 810 $ (30) -3.7%n Fire Services Improvement Levy 73 67 6 9.0% Recycling Levies 64 62 2 3.2%n Utilities 699 653 46 7.0% 1,616 1,592 24 1.5% Other Agency Levies *: Other Agency Levies * 111 116 (5) -4.3% School Tax * 443 473 (30) Less: Home Owner's Grant 570 570 - (127) (97) (30)1 30.9% Total Taxes $ 1,600 $ 1,611 (11} -0.7% Sample 8 - Upper Hammond Property 2011 Assessed Value: 450,000 2010 Assessed Value 425,000 2011 2010 Change % Percentage Change: 5.88% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 1,602 $ 1,535 $ 67 4.4% Fire Services Improvement Levy 149 127 22 17.3% Recycling Levies 64 62 2 3.2% Utilities 699 653 46 7.0% 2,514 2,377 137 5.8% Other Agency Levies *: Other Agency Levies * 229 219 10 4.6% School Tax* 909 896 13 Less: Home Owner's Grant 570 570 - 339 326 13 4.0% Total Taxes $ 3,082 $ 2,922 160 5.5% Sample 9 - Maple Ridge Average based on BCAA Market Increase of 5.54% 2011 Assessed Value: 404,222 2010 Assessed Value 383,004 2011 2010 Chan e 0/0 Percentage Change: 5.54% Municipal Council Levies: Gen Purpose, Debt & Library Levy $ 1,439.03 $ 1,383.68 $ 55.35 4.00% Fire Services Improvement Levy 133.92 114.79 19.13 16.67% Recycling Levies 64.30 62.43 1.87 3.00% Utilities 698.55 652.50 46.05 7.06% 2,335.80 2,213.40 122.40 5.53% Other Agency Levies *: Other Agency Levies * 205.30 197.40 7.90 4,00% School Tax * 816.86 807.37 9.49 Less: Home Owner's Grant 570.00 570.00 - 246.86 237.37 9.49 4.00% Total Taxes $ 2,787.96 $ 2,648.17 139.79 5.28% * Rates for Other agency and School Tax for 2011 not yet available so an increase of 4% was estimated. VANCOUVER CHAPTER RF 0MCIVNAL SUPPLEMENT Appendix "B" COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION METRO VANCOUVER * CHAPTER Municipal Development Costs New this year: ♦ A historical comparison comparing the actual cost increases since the survey's first publication in 2000 to the average increase in the CPI over this time period Some Positive Highlights to Note: ♦ One municipality managed to keep their cost increases below the rate of inflation over the ten year period from 2000 to 2010 ♦ Processing times have remained generally stable with increases in 4 municipalities offset by a decrease in two ♦ Four cities have lowered their costs and one held costs at the 2008 level ♦ Increases in Development cost charges for improving municipal infrastructure appear to be leveling off with 9 municipalities lowering versus 5 increasing the charges ♦ Business to Residential Tax ratio's have shown a significant improvement since 2008 with half of the municipalities meeting the ideal ratio of 3 to 1 compared to only 5 municipalities surveyed in 2008 Some Not -So -Positive Highlights: V Compared to the rate of inflation from 2008 to 2010 (just over 1 % per annum), 15 out of 20 municipalities have posted increases in excess of the annual inflation rate, in one case an increase representing a 70% hike in costs over this 2 year period V Letters of credit and other forms of refundable security are becoming excessive which will become more of an issue in today's credit -restricted environment Emerging Trends ♦ The gap between the average cost of $340,000 per jurisdiction and the lowest cost municipality has narrowed it's rate of increase, totaling $199,000 this year, up slightly from $180,000 in 2008 Regional 0cc11 rE Development Cost Survey ................................................................................. Fall 2010 The Vancouver Chapter of the National Association of Industrial and Office Properties (NAIOP) is pleased to present the 2010 edition of their Commercial Development "Report Card" n the fifth anniversary of the Office survey which began at the eve of the new millennium in 2000, we find ourselves in a time of uncertainty with mixed signals from industry and government providing no clear direction of where the economy is headed. With the rapid rise in real estate values to their pre -recession levels, Vancouver has experienced positive year-to-date absorption and an increased level of leasing and sales activity in the office market. Despite the dramatic rebound from the 2009 lows, overall vacancy in the Vancouver office market continued its upward trend. The current office vacancy rate is 8.4% compared to 6.9% a year ago. A leading cause of this increase in vacancy is the large number of new completions coming to market in the suburban markets. Despite this imminent upswing in the vacancy rate and storm clouds on the economic horizon, Vancouver has emerged from the 2009 recession relatively unscathed and poised to capitalize on the recovery as it takes hold. The Survey, which is distributed to 20 communities within the Lower Mainland, requires each municipality to identify the costs and processing times associated with the parameters of the case study outlined within this article. For 2010, the development project was, as per the previous Surveys, the construction of a 2 storey, 50,000 square foot office building on 2.5 acres of land requiring both subdivision and rezoning. As this. is the five year mark, we thought it would be interesting to show the costs we first reported back in 2000 at the Survey's inception to give some historical interest of the increases (or decreases) compared to the CPI which has ranged between .08% and 2.9% since 2000 and averaged 1.8% during the time period. We are sure you will find these particular results quite informative. In producing this annual publication, NAIOP strives to provide its membership and the business community as a whole with a reference cool that quantifies the costs and processing times associated with typical development projects within Metro Vancouver municipal jurisdictions. Moreover, we believe the Survey can be utilized by the municipalities, whose active participation makes this survey possible, as a gauge for their own development costs and approval processes. Survey Scenario 01 Market Beat - Office Report Market Statistics Municipal Fees B Timing B Municipal Fees and Approval Times 9 Robert Lee Profile 11 Comparative Tax Burdens 12 Property Tax 13 Move Towards Green 14 Office Profile 15 YEA WeSg ro u 500 the path of progress Pharmasave National Head Office I Langley, BC TransLink and Transit Police Head Office I New Westminster, BC N MIR ISE . w North Shore Credit Union I North Vancouver, 3C Corporate Home juarfers value the changing dynamics of our region and economy has required all businesses to reconsider their current and future real estate needs. quality our flexible partnership business model and process has offered private and public companies, as well as government agencies, a custom approach to address their unique needs to relocate, consolidate or expand their operations - performance • cost efficiencies • operational cost savings • transit & skytrain access • floor plate efficiencies • sustainability initiatives • turnkey delivery options • architectural branding • employee satisfaction We have many premiere and accessible development sites available throughout Metro Vancouver. To find out more, please contact: Raymond Choy 604 484 2678 wesgroup.ca Regional Office Development Cost Survey — Fall 2010 3 NAIC)p D1_VBLDP4ENT ABaOCIATION �•rwo v.xcovvew r cx..rww Office Development Scenario its year's survey was ■ based on an office ,,NORTH development scenario, the " ■ v R,OUVER construction of a 2 storey a 50,000 square foot Class B office building on 2.5 acres VER Rusruey of land. Municipalities ■y,w ■ tr ■ received a "development proposal" where rezoning, F. NnHO ■ SURREY subdivision, development oEttA ■ permit and building ■ permit approvals would to be required. They then reported on development costs and approval times according to their usual standards and processes. an opportunity to review and comment on 20 municipalities were asked to the results prior to publication. Please note process this mock development scenario that the Survey results are based solely through their planning departments to on the responses of the municipalities. assess the approval times and overall costs The Metro Vanacouver water and sewer associated with granting building permit charges, returnable security deposits, and approvals for the development. letters of credit have been broken out as This level playing field provides separate items for comparative purposes meaningful comparison to actual building but have not been included in totals and development permit requests made due to regional variation in methods for by industry, and holds municipalities calculating these items. (See detailed tables accountable for delivering on promises on pages X) to efficiently process development opportunities in their respective Subject Property is currently: jurisdictions. • Not subdivided All municipalities were provided with • Zoned Residential rl s richlards huell sutton LLF Barristers and 5a Ikktors RBS has built a solid foundation in all aspects of real estate law arld Is dedicated to bringing the MaXiM U M return on investment to our clients. rromthegrou1 d Up, our YOU first approach io your real estate transaction is the perfect fit. ser Yal1�y ��� ■ CNILLIWACK ABBOTSFORD ■ CANAOA U`sA -.. • 2.5 Acres Development Proposal • 2 storey 50,000 square foot office building • Interior lot with 295 feet of frontage on dedicated municipal roadway • Net size of 2.0 acres after road and other dedications Required Municipal Processes • Rezoning • Subdivision • Development Permit • Building Permit . � y Construction Costs • $132 PSF for the Building ($6,600,000) • $12 PSF for site improvements ($600,000) • $600,000 for street and drainage improvements (not DCC rebateable) Regional Office Development Cost Survey — Fall 2010 PROJECT MARKETING EXPERTISE Accelerating your development's success from the ground up. FDR Jameson House Office Vancouver Own rarely available, high quality, brand new office space in Downtown Ventouver Floors can be purchased together Or individually fo offer between 6.000 - 28.000 SF • Highly functional floorptate sixes, layouts and views create attractive work sparms Simon Urn* 604 6610882 John Freyvoget ,jib 604 6610806 13913 Fraser Highway Surrey Over 160,000 buildable square foot multifamily residential development site f • Located in the City of Surrey on Fraser Highway, minutes from Highway 99 and King George Highway • Asking Price: $3.800000 John W.Gee* rl.p 6D4 6610819 Owen Yates ,:fl:• 604 6610803 3A.CE Currra c Landing at Vancouver's New Convention Centre • Spectacular location in the Central Business District • Preleased to some of the City's best restaurants, eateries, pubs and cafes • Waterfront opportunities remain available Sheldon Scott* Matt Saunders mp, 604 662 2660 ❑iR 604 6610802 D011arton Landing/Dallarton Business Park, North Vancouver • North Vancouver's largest commercial strata developments 135.000 SF+ 80,000 SF respectiveiy • Consulted with developer, municipality and architect on functional design and effective zoning resulting In a successful project Terry Thies* Scott Smith :jlr 604 6610845 ulF: 604 662 2695 www.dollarionbp.cnm " --] I Golden Ears Business Centre, Pitt Meadows FOR 1--wA5E • Minutes from Highway 1, Port Kegs, CP Interlreodat Yard and the South Fraser Perimeter Road • Various build to suit opportunities on 95 acres • Building 100 now under construction, from 2.625 - 75.682 SF available Chris Maccauley Chris Morrison ❑ia� 604 662 2667 nip: 604 6610875 This document/email has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or its licensor(s). © 2010. All rights reserved. This communication is not intended to cause or induce breach of an existing listing agreement. Colliers Macaulay Nicolls Brokerage Inc. (Vancouver). "Personal Real Estate Corporation. PO # 10912. Regional Office Development Cost Survey — Fall 2010 ■ _ Yt s >r _ � s ■ __ M = —� ` _ �_ �_- ikF�tr ii � � -O�rT � TiFs - Yis Economy British Columbia is embracing 2010—the recession has passed, the Winter Olympics were a success, and strong economic growth is anticipated for the future. In 2009, BC was overwhelmed by its most significant economic downturn since 1982 and faced an uncertain economic future. Only one year later, BC is poised to keep pace with Canada's expcted GDP growth through 2010 and 2011, projected at 3.3% and 3.2%. Both BMO Capital Markets and RBC Economics agree that a leading factor in BC's economic recovery is the rebound in commodity prices and demand. Both oil and forestry product pricing have seen tremendous growth since their recessionary lows. RBC reports that lumber prices have recently hit a four-year high after falling to a 19-year low only one year ago. The leading driver of this forestry turnaround is the increase in housing starts both domestically and internationally. The resale housing market in BC has rebounded and housing prices increased 30% from the depth of the recession to recent record levels. Part of the improvement in the housing market is being attributed to the large number of consumers who rushed their housing purchases to beat the June 30th HST deadline. Consequently, BMO predicts housing sales to drop off in the latter half of 2010. Overview The increasing level of confidence in the Canadian economy has sent positive reverberations through the Vancouver real estate market. Vancouver has experienced positive year-to-date absorption and an increased level of leasing and sales activity. Despite these signs of recovery, overall vacancy in the Vancouver market continued its upward trend. The current office vacancy rate is 8.4%, up from 7. 9% in the First quarter and 6.9% a year ago. A leading cause of this increase in vacancy is the large number of new completions coming to market in the suburban "The downtown market contiunues to be tight, with many large pockets of space remaining in the suburbs. Office space demand from American -based companies remains slow, with an improvement required south of the border before any noticable rebound can be expected." — Bart Corbett, Senior Vice President NA10Pi DEVELOPMENT ASSOCIAT ON Y[Tw0 VANCouV [w } xe ♦�T[w ECONOMIC I I 2009 201OF 2011F GDP Growth -2.3% 3.9% 3.9% CPI Growth 0.0% 1.9% 2.3% Unemployment 7.6% 7.2% 6.6% Employment Growth -2.3% 1.9% 2.0% Source: BMO Capital Markets 7fromVACANCY imin Q1 to 4.6% in Q2 in the CBD ABSORPTION - more than 80,000 square feet of positive absorption was posted downtown in Q2 DEVELOPMENT - Over 486,000 square feet of new space has been brought to market in 2010 markets. More than 565,000 square feet (sf) of space has been brought to market since the beginning of 2010— much o£which is situated in Burnaby (more than 80n/o). Vancouver's CBD has continued its positive performance in 2010 with decreased vacancy, positive absorption, and increased leasing performance. In the second quarter alone, more than 255,000 sf of space was leased in the Financial Core. A contributing factor to this improvement is the turnaround in employment growth. BC's unemployment rate is projected to drop 40 basis points to 7.2% through 2010, with annual employment growth of nearly 2.0%. This employment rebound has initiated expansion of tenant space requirements and is forecasted to continue through 2011. With no new construction in the CBD, the market will continue to tighten. Outlook Vancouver's office market outlook Future Trends s an indication of what the future could bring, NAIOP included a section within its survey on future policy directions and changes to existing policies that were under consideration at the time of publication. This information comes with a general disclaimer that all or a majority of these potential changes are subject to either council or staff approval and final drafting. To the right are some highlights of what could be coming in the near future to a jurisdiction near you. remains positive. Despite potential construction and the prospect of a storm clouds on the horizon, economic new office tower completed in the recovery continues to take hold and downtown core, Vancouver has emerged real estate indicators are following from the largest economic downslide suit. Although the vacancy rate is since 1982 in a relatively advantageous projected to rise due'to new suburban position. Municipality Upcoming Planned Policy changes Downtown Community Plan recently completed, working on Queensborough Com- munity Plan, The Downtown Community Plan has policies that encourage commercial New Westminster development within the neighbourhood. The Queensborough Community Plan will also provide policies and strategies that guide future commercial and industrial through a new land use map City of North Vancouver Staff is beginning work towards updating the OCP with adoption scheduled for 2012. District of North Vancouver Zoning regulations are being re -written for new business friendly industrial zones to provide greater flexibility and allow for more intensive use of the land The City is currently in the process of commissioning an employment lands study Richmond examine whether the city has adequate lands to meet the growth projection to 2040. The study will inform the ongoing OCP review. Port Moody Nearing completion of OCP Review 2010. City staff will be moving toward the electronic review of development permit COqultiam applications. We will be adopting new, simplified industrial zones Regional Office Development Cost Survey — Fall 2010 Market/Submarket Statistics NAIQP -.via _,qC IAL `SEAL F�TAt-e :r�np+,s _;a- hSOCihTi4N xerxo v�xeouvex ti ex •�ree arket/Submarket Inventory No. nl Bids Vacaney Rate Bleacl Vaeancy Rate YFO Laaajag Under Cald M 0 81,948 8029 Downtown Vancouver 23,822,187 184 4.6 % 3-6% Broadway Corridor 5,223,354 92 4.4 % 3.7 % 0 -27,322 -29,215 Central 29,045,541 276 4.8 % 3.6 % 832.275 0 0 54,626 40,314 Burnaby 9,607,059 113 13.1% 11,4% .264.015 -51,023 -20,719 Richmond 4,365,067 75 17.6% 14.6% 0 14,987 -7,533 North Shore 1,523,825 34 5.3% 4.6% 0 19,037 25,897 New Westminster 1,039147 26 13.7% 12.2% 0 -2,927 10,528 Surrey 3,246,638 43 15.3% 15.3% 0 9,130 9,130 Suburbs 19,328,339 287 12.4% 12.3% 833,273 0 264,018 -21,423 17,303 �-NCOUVER TOTAL 48,829,27—r 56: 11St,6'7 TORONTO OTTAWA MONTREAL VANCOUVER EDNtON i UN WINNIPEG CALGARY LONDON When you need a commercial real estate advisor who understands your business as well as the market, only one firm has the depth and breadth of industry -specific experience to respond to your needs. With more than 538 employees in 16 offices across Canada and resources that span the globe - Cushman & Wakefield has the expertise and market knowledge to handle any assignment in any corner of the country. No matter where you are... We're There. www.cushmanwakefield.com Regional Office Development Cost Survey — Fall 2010 7 More Bu ild More in gs. Choice. With » unique downtown office buildings to choose from, we have a wide variety of urban leasing options to suit your needs. Lou Ficocefli Pacific Centre 6o+63o.5307 CANACCORD FINANCIAL PLACE HSBC BUILDING Call today TD TOWER for more 701 WEST GEORGIA information. 777 DUNSMUIR 700 WEST PEN DER 750 WEST PENDER L Waterfront Properties GRANVILLE SQUARE PRICEWATERHOUSECOOPERS PLACE THE STATION WATERFRONT CENTRE WWW.CADILLACFAIRVIEW.COM 8 Regional Office Development Cost Survey — Fall 2010 Municipal Fees NAIOP 10%1 ifi ERCIAL REAL ESTATE __6rM'eNT ASSOCIATWN McTRI IAIIQUv[n 111 CHAPTER O©®[i0�® 1111 ®®_9®II— wu®�® � '. 111 �=®®I— —I=®©®®®®®®® x��®®®®®®® 00® ® MiMM r T® 1 1 ®®®®®®®®® ■o EWE'ul© -d- i"ic - ®®®®®®® 1 Mission -responded with "variable" for costs, estimates are based on response to 2008 survey 2 White Rock -Water Service is 3rd party through EPCOR. Increase from 2008 Survey 3 Port Coquitlam - DCC's assumed Area 1, (Area 1= $187,525 and Area 2= $833,294) Decrease from 2008 Survey — - 4 New Westminster- DCC's assume City not Queensborough ($33,500 for Mainland, $255,500 for Queensborough) 5 Township of Langley - DCC Rate currently $204,438 until October 21st 2008, revised DCC's of $252,837 used. 6 District of North Vancouver Water Hookup charges does not include admin/inspection/design/survey charges (12 % add'tnl), contingency and GST (25%) 7 DCC rates vary in the City from $1.90 to $22.20 per square foot, standard City-wide rate of $7.70 used 8 The City has multiple GVS&DD rate areas. Higher East Richmond rate used for consistency with previous years Survey 9A DP would not be required for this development unless located in City Centre. 10 City of Richmond has single DCC rate for Office. Other jurisdictions have multiple rates depending on location which can significantly skew the resulting total costs (see Port Coquitlam and New Westminster for examples) # Based on 2010 Business Class mil rates using scenario values of $6,600,000 of building/sl¢e improvements- see Mil Rate Table for additional details. Timing � ©O r . © •1 1 ��®sue■�� Concurrent Foundation permit can be issued while remainder of permit is processed Increast rlom 2008 Decrease from 2008 Survey Regional Office Development Cost Survey — Fall 2010 I.I�\C0-hoi Municipal Fees and Apprc�wal Tim.9116. ^.'v-'IE:. t?PME^ T ASSCC!A',GN YeT1,o v�N<ouvCN � oN��T�N Municipal Development Costs Richmond 668,623 Suzy 568,513 Fees and Approval Times Vancouver 539,499 For 2010, the development project Abbotsford 484,731 was, as per the previous Surveys, of North Vancouver 425,638 the construction of a 2 storey 50,000 square foot class B office building on Coquitlam 391,437 2.5 acres of land. See page 3 for the full Mission 375,658 description of "The Scenario'. Langley (City) 361.239 Township of Langley 360,587 West Vancouver 337,375 Port Coquitlam 324,580 of North Vancouver 317,513 Delta 287,000 Maple Ridge I_ 267,520 Port Moody 215,327 Chilliwack 198,634 Pitt Meadows 195,031 New Westminster 148,726 City of White Rock 138,17 Burnaby 137,81: i $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Cost ($) Municipal Approval Times Fees and Schedule - 270 total fees levied by each West Vancouver The municipality for the construction Vancouver 270 of a 50,000 square foot office building New Westminster 270 development (as described on page 3) City of North Vancouver IM1111i 240 are presented on the left, above. On the Maple Ridge 210 right, the total approval times — from District of North Vancouver 210 application date to Building Permit City of White Rock 180 — are shown. Approval time frames Port Moody 160 shown can and will extend beyond Mission 180 the periods noted if the developer does not supply necessary information Port Coquitlam 180 with the initial application or respond Coquitlam 150 to requests for additional detail or Delta 150 clarification in a timely manner. Richmond 150 Carrying costs (interest and taxes) Pitt Meadows 150 represent a considerable component Township of Langley 120 of pre -construction expenses and Burnaby 120 additional time spent in the municipal Langley (City) 120 approval process increases those costs. Surrey 120 Chilliwack 90 Abbotsford 90 0 50 100 150 200 250 300 350 Days Helping You Build y Doing All the Heavy Lifting. V44en it comes to solving your environmental issues, too all the heavy lifting for you. Our practical management and planning approach >=4s to reduce your risk, cost and aggravation. /O PGL I Pottinger Gaherty ENVIRONMENTAL CONSULTANTS � __8,88,5 57,848 pggroup.com 10 Regional Office Development Cost Survey — Fall 2010 NAIOP :: �J ✓M Sk Ci;,L REAL ESTATE oEVeL' PPMDHr „asacur,an Municipal Fees and Approval Times CPI Comparison March 2000 to March 2010 Burnaby Vancouver deserves kudos for eamiting City of White Rock liWt the increases in their fees New Westminster to less than the rate of inflation since Pitt Meadows 2000. A clear pattern can be observed Chilliwack with regards to development cost Port Moody increase variations. The graphic shows that an initial cluster of municipalities Maple Ridge managed to limit their increases to Delta between 2 and 3 times CPI (primarily District of North Vancouver the suburban locations). The next clear Port Coquitlam grouping occurs between 3 and 5 times West Vancouver CPI (municipalities that have generally Township of Langley experienced higher growth) with one outlier at more than 7 times CPI. Mission Over this time period, the'All Goods Coquitlam Consumer Price Index" in the Greater City of North Vancouver Vancouver Census Metropolitan Area Abbotsford increased by 1.83%. (Source: BC Stats) Vancouver Surrey Richmond Annual Increase Compared to CPI (1.83%)* pr8.7% 2.4% 8.4% 5.5% l0% 7.8% 7.7% . 3.a4G Z99i L4% / 0% Development Costs Percentage Change 2008-2010 Richmond 20 % Surrey 25% Vancouver 1 21% Fee Changes 2008 to 2010 AbboWord 1'„4 The graph on right illustrates the City of North Vancouver 25% percentage change in development Coquitlam + 1 8111. fees levied by each municipality between Mission d% 2008 and 2010. Of the 20 municipalities !I 15 that responded to the survey, 15 reported Langley (City) n Ell d % a wide range of increases ranging from Township of Langley 3% to over 70%. Four municipalities West Vancouver I s'" reduced fees while one held costs the same Port Coquitlam 16% over the time period. District of North Vancouver it�B Delta 269E Maple Ridge r •� Port Moody 72% Chilliwack PittMEadows '' 8 New Westminster I� City of White Rock -1-.. Burnaby 0% 10% 20% 30% 40% 50% 60% 70% 80% -A5: Change Build. Business 1BUSIN[SS,�ffl NVESTOR BIV Media Group offers targeted business intelligence to keep you in the loop so you can build your business. www.biv.com/aboutbivmg.asp Regional Office Development Cost Survey — Fall 2010 FBI WIVIVI 1 i W#M7%4R. ROBERT LEE E: `,r.: by John Conicella �Wr The Lee Legacy ICON NAIOP+Vancouver 25 years ago on a typical frigid winter day in Winnipeg, I decided that I knew what I wanted to be. Although I was in my second year of architecture school, I was convinced that I wanted to be a real estate developer. Today it is a beautiful, sunny September morning on the West Coast, and I am about to meet with Mr. Robert H. Lee, the founder and Chairman of Prospero International Realty Inc. The reason behind the meeting? NAIOP's Vancouver Chapter has selected Lee as our 2010 NAIOP Icon, and I have the personal privilege of meeting and interviewing him. The Education Few of us can look back and pinpoint a single defining moment that forever changed our life, but for Lee that moment s crystal clear — it came in his early adolescence while enrolled in grade 4 at King Edward High School in Vancouver. Lee explains how this is the time when he encountered a proverbial "fork in the road." He recounts how this is the time in a young students' life when you have to make a decision as to whether to take courses in preparation for university, or work ready courses "such as wood class or typing". Despite an assumption that he would work in the family business with his father, and counter to the advice given to him by his high school councilors who viewed his grades as insufficient to warrant acceptance into university, Lee made the decision to attend university preparation courses. "For some reason," Lee says, "I just knew that I should take the university preparation classes instead." That single decision would forever change the course of Lee's life. He would later go on to graduate from UBC in 1956 with a Bachelor of Commerce degree. Many times during our conversation Lee modestly uses the word "lucky" to describe many aspects of his success. He tells me how, at 24 yeais of age, he was thrust into the position of running the family business, which by this time had become the largest bamboo drape importer in Canada. Around this same time the family began to acquire significant real estate holdings, and Lee recollects that he was lucky because he "could have lost it all with [his] limited experience." He goes on to say that in hindsight he could not imagine putting that burden on his own children at that age under the same circumstances. Even today he says he is still learning, whether it be by serving as a member on various boards, keeping up-to-date on the latest market information, or by attending mandatory real estate upgrade courses. The Pioneer My generation is familiar with the Asian influence on Vancouver and specifically the real estate market in the post -Expo era. Similarly, we are well versed with the most recent real estate rush in the mid-1990's leading up to the 1997 handover of Hong Kong to China. Most of us, however, are probably not as familiar with the first influx of Asian real estate investors that, according to Lee, has its roots in the tumultuous landscape of 1960's China. During this time there were serious concerns that China was going to overtake Hong Kong, these concerns were further agitated by The Great Proletarian Cultural Revolution - a violent mass movement that resulted in social, and economic upheaval in the People's Republic of China starting in 1966. Destiny would link Lee, a Chinese speaki UBC graduate with a real estate broker license, with overseas investors seeking a safe real estate market. Looking ba ultimately credits his ability to establish a relationship with the new investors to his ability to speak their language, a father who forced him to take Chinese lessons for 12 years. These initial relationships that Lee established would gro become the foundation of Vancouver's connection with the Asian investor for the next five decades. The Innovator The 1980's were a devastating time for the real estate industry. Thinking the slow period was going to continue for some time, Lee decided to join the UBC Board of Governors for a three-year term. Twenty-six years later he not only remains as Chairman, but he is also the founder of the UBC Properties Trust. Recently, references to market residential land leases and mezzanine financing as financial investment vehicles have become commonplace in our industry. Indeed, one could even say that they have been adopted as normal business practices. The origin of both of these concepts, however, can be traced back two decades to our own local real estate market, to the UBC Properties Trust, and to the innovative thinking of Lee. Lee recalls how, when he first broached the land leasehold concept with board members, he believed it was an ideal way for UBC to earn income forever on the initial land lease. Furthermore. he held that it would allow the University to retain permanent control over the land interest after the lease expired. The concept, however, turned out to be a hard sell with industry locals who claimed that the model was destined to fail in the Vancouver market. Lee admits that when no local bids were received on the initial 28 acres of land, even he started to have doubts about the viability of the concept. Addressing this lack of interest proved to be a challenge, and eventually Lee again turned to his relationships with overseas investors. That initial land parcel would become the first residential project on the UBC campus (Hampton House), and was also the impetus for the successful growth of UBC Properties Trust. Today, the Trust is responsible for the generation of some $600 million, all of which is a result of the land -lease business model. ,r- The early 1990's was another period of innovation for Lee when, while serving on the board of a significant pension fund, he introduced the concept of mezzanine financing as an alternative investment model. The model has subsequently resulted in an impressive double digit average return over the last 18 years, which is further testament to legitimacy of Lee's knowledge and creative insight. about his principles for success he quickly and naturally rolls out five — "be generous, establish a network, lave a passion, and establish a good reputation." After a brief pause he says, "money is not everything but it comes with the others." In looking at his illustrious career and countless distinctions it is obvious that these principles have served Lee well. Just a few of his many honours include an Honorary Doctorate of Law from UBC, the Order of British Columbia, and the Order of Canada. The graduate school at the UBC Saucer School of Business was named after him, as was the new YMCA facility in downtown Vancouver. Furthermore, Lee takes a special pride in his recent induction into the Business Laureate of British Columbia's Hall of Fame — an organization honouring outstanding contributions of BC business leaders to the province and country. He counts this as being one of his career highlights and explains that, "being recognized by this group of people was extremely gratifying." For myself, the last 25 years have been a long journey leading me to a point where I am fortunate to be fully engaged in the challenging, fast paced, and ever changing real estate development industry. Mr. Robert Lee represents everything that makes me know I made the right career decision. We as an industry, a city, and a province are indebted to the unmistakable depth, breadth of connections, and friendships that he has fostered for all of us. iN Regional Office Development Cost Survey — Fall 2010 Comparative Tax Burdens While it may not be the primary consideration, a growing number of businesses are considering the impact of the property tax burden, and the variations in that burden across the region, when making the decision on where to locate. Property taxes are not, for the most part, factored into per -square -foot lease prices but, like common area and maintenance (CAM) costs, they are paid in addition to the base lease rates. Municipal property taxes pay for city services such as parks, roads, utilities, policing, fire protection and local improvements. Property tax rates within any municipality are impacted by two factors. The first is the value of the property being taxed and the second is the tax rate (mill rate) that the municipality applies to various property types. Municipalities ensure their ability to balance their budgets with their ability to adjust mill rates. The property tax burden for businesses varies from jurisdiction to jurisdiction however, compared to residential tax rates, businesses (`industrial' and `commercial' property designations) pay a significantly greater proportion of the property taxes. For light industrial and commercial properties, research has indicated that the ideal median tax ratio (industrial/commercial tax rate to residential tax rate) is 3 to 1. Less than half the municipalities surveyed are in line with this ratio. The awareness among business owners of the disparity between commercial and residential tax rates is growing. Vancouver and Coquitlam's ratio in 2008 was approximately 5 to 1 and has been reduced to 4.5 to 1 in 2010 by lowering or maintaining the business tax rate at the expense of an increase in the residential rate. We commend both municipalities for their efforts and we look forward to future adjustments. The caution in using this comparison is that it may be misleading in times of rapid appreciation of residential land values vs. commercial land values, in KOFFMAN K OF LLP BUSINESS LAWYERS Our Commercial Real Estate practice group represents clients in a variety of complex real estate transactions and development matters including: the purchase and sale of shopping centres, office buildings and industrial parks; strata property development matters, including the preparation and filing of Disclosure Statements under the Real Estate Development Marketing Act land assemblies, subdivision matters, includ- ing providing advice regarding environ- mental and municipal requirements; bare land strata developments, strata hotel and recreational developments, and leasing transactions (industrial, office, retail, and First Nations). We also advise our real estate clients in connec- tion with construction, takeout and inventory financings, and the structur- ing of joint ventures, co-ownersbip arrangements and real estate syndica- tions of all types, including limited partnerships. Front left to right: Morley Koffman, Q.C., Patrick J. Julian, Daniel S. Remick, Andrea J. Wales, Stan Wong, Mark E. Wong, Erin K. Tait, Leslie A. Tucker. Missing: Michael M. Kalef, Andrew G. Kadler these circumstances, the ratio may appear to worsen but the taxes are simply being spread out amongst a higher residential value base while actual taxes paid for commercial properties could stay the same. To illustrate this in reality, NAIOP used the value of $6,600,000 from the scenario as a constant to calculate the level of taxes that the exemplar office building would pay in each municipality. Not suprisingly, the highest absolute taxes were paid in Coquitlam which also ranked 20th on the median tax ratio table. The next 4 highest taxes consisted of a number of municipalities with reasonable ratios including Abbotsford and Mission, showing very clearly that a low ratio does not necessarily translate into a competitive tax level for local business. Even more surprising was that three of the top 5 cities (Burnaby, Vancouver and the City of North Vancouver) with the worst ratios had levels of taxation that were in the middle to the low end of the spectrum. NA10P COMMERCIAL REAL E3TAT¢ OE'IHLOPVEMT A590CIATrDW For 2010, the five municipalities with the lowest commercial to residential property tax burden (rated from lowest to highest) were: 1. West Vancouver 2. Chilliwack 3. Langley (City) 4. White Rock 5. Abbotsford The five Metro Vancouver and Fraser Valley Municipalities with the highest commercial to residential property tax burden (rated from highest to lowest) were: 1. Coquitlam 2. Vancouver 3. North Vancouver (City) 4. Burnaby 5. New Westminster Small and medium sized commercial businesses are essential to the socio-economic health of the community and contribute to the goal of building compact sustainable cities. High municipal property taxes for these types of businesses have serious impacts on our city, neighbourhoods and employment NA10P would like to acknowledge and think ail zo municipalities who took part ut this year's Development Cost Survey. Partidpation is voluntary and the time expended to respond to it can he significant. not unlike a "real" development application. Development in any lurisdicd= is a partnership between business and the community. NAIOP is pleased to be in a posidunto work, on behalf of ourmernben, with allofthe Metro Vanmuver{urisdictiorls. which participated in the publication ofthis information for the huttineas corn unity. NA10P would also like to acknowledge the contributions from Cushman and Wakefield for the Market Beat Report and i.awsan LundeIl for providing the municipal Mill rate information. Thanks also to MAICP members for their time in puffing this prajeet "ether. Groerne 5tivera, Plenary Group (ahado Ltd. [hair NO Llevolopmen Imes eommillee Andrea Wellbum, Cud mort6 Wakefield LePage IoL Cheryl Carter, 8uslness in yaMoum Christine Campbell, Weskm Investor John Conieella, Wesgroup Properties Goelen Henry, Wogroup Pruporlias Darlene Hyde Ernst Tetiker, NAIOP Geoff Mau. GWL Reeky Adv. NA10P COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION MISTiLO YANoou YlN * aMAPTXR ww.naiopvcr.com 19th Floor, 885 West Georgia Street Vancouver, British Columbia V6C 31-14 Canada Telephone 604-891-3688 Fax 604-891-3788 www.kkbl.com Regional Office Development Cost Survey - Fall 2010 13 Property Tax NAIOP �OMNI F R C I AL REAL F STATE re2no v�xeouv[• * exA�Te11 West Vancouver 4.8353 2.3182 2.0858 1 3 Chilliwack 91883 4.2696 2.1520 2 4 Langley (City) 8.5338 3.8844 2.1969 3 2 White Rock 9.3037 3.7776 2.4529 4 5 Abbotsford 12.6500 4.7713 2.6513 5 1 Langley (Township) 9.1288 3.2023 2.8507 6 6 Part Moody 9.8343 3.2920 2.9873 7 10 Surrey 7-3798 2.4604 2.9994 8 7 Maple Ridge 11.7403 3.9124 3.0008 9 9 Delta 10.4049 3.4210 3.0415 10 8 Mission 14.4650 4.5657 3.1682 11 11 North Vancouver (District) 8.6340 2.6015 3.3188 12 14 Pitt Meadows 12.0750 3.5934 3.3603 13 15 Richmond 8.3639 2.4173 3.4600 14 12 Port Coquitlam 13.7092 3.8343 3.5754 15 13 New Westminster 14.2705 3.8241 3.7317 16 16 Burnaby 10.0296 2.5867 3.8774 17 17 North Vancouver (City) 9.7980 2.4898 3.9352 18 18 Vancouver 9.7808 2.1486 4.5522 19 20 Coquitlam 15.0318 3.2077 4.0862 20 19 FIND OUT MORE ABOUT US AT W'WW.OMICRONAEC.COM Regional Office Development Cost Survey — Fall 2010 Move Towards Green A `snapshot' of the increasing move towards ustainability amongst the municipalities, NAIOP has included a section within its survey on whether there are any sustainable/green building requirements (beyond the requirements in the BC Building Code) or incentives in place within each municipality. This year more than half (13 of the 20 municipalities who responded) confirmed they have requirements and/or incentives to promote sustainable building. Some were voluntary measures covering all areas of sustainability or smart growth, others were mandatory actions on particular items such as stormwater management and green (planted) roofs for buildings over a certain size. Most municipalities now require some form of sustainability reporting as part of their rezoning/ development application, and many NA-10-P CalM F Ro IA REi C 1. ce�.�an a nss 7c��rion ..,.o v.,,�ooven ,► <R..ren of these are offering incentives including density bonusing, floor area exclusions, transfers, DCC and tax exemption, as well as fast tracking the permit process for "green" projects. In future, the expectation is that many of the processes that are now voluntary will be formalized, as municipalities raise the bar on what is considered green. mokwily W-en OwIftill BRO an IV green swift h�Hlrele Gn+101111"" = — lfot m wy des Burnaby ✓ ✓ ApPiicants are encouraged to use LEED on a site specific basis Storm water management, some reduction in parting for co-op car spaces District of Maple Riduu ✓ Guidelines and Tax exemption provided in Town Centre New Westminster ✓ ✓ Smart Growth Checklist required - compliance with the list can reduce approval processing times Green roof (or equivalent) required where building area exceeds 500 m2. Port Coquitlam ✓ Up to $50 rebate available for use of low -flow fixtures. Fast track Building Permit application for LEED buildings. Pitt Meadows Smart aimlrth Chinldisl raqulted - can nftcs jxocasing lima II complied Wills Sustainability statement required for all development applications; direction from council to City of North Vancouver ✓ realize higher energy standards. No specific incentives but sustainable buildings could be viewed as more meritorious in the development application process Sus l eltat in Y the wist Ifir 4 pipm a of fart mows urtwimblwy mviNt Port Moody ✓ ✓ environmental, economic, social and cultural. required for all development proposals - requirement to achieve 251% better energy parformance than MNECB- If rainwater is managed onsite, fcollected and dispersed) with Abbotsford ✓ y no connection to the city system, drainage 0CC's may be exempt. District of North Vancouver ✓ Votunf try green building 0rwim Delta has developed a "green growth" index as a tool to identify the sustainability Deft-) r features of major new development projects. These features are reported to council and secured as part of development agreements. CW Greed 0WIdlrlg Strallpy and Gratin homes Praoram Floor socca ux£Iudient granted for Valicauv-r wall assemblies to remove penalty for constructing wafts with higher energy efficiency Coquldarr, Storm water design requirements Bylaw SJd5'Gretin ROW r, 3 older 0phorT5 lavolv.Ing indlrstnal 8urid'Ifigs' requires that Richmond industrial buildings outside of the City Centre, with a gross floor area of 2,000 m2 or more, to reduce the amount of storm water runoff by at least 20%. DL Spotlight: Derek Jones I Concert Properties by Gaelen Henry Derek Jones is full of energy. He is ambitious, funny, and has more than a little to say about the up-and-coming generation of real estate professionals. Working as an Acquisitions Manager at Concert Properties for the last 6 years, he was drawn to the real estate industry because of the challenges created by the dynamic and heterogeneous nature the work. It is an industry where problem solving is a necessary skill, where "you never have all the information, and often have to put together the pieces to make an informed decision." The real estate industry, however, is more than just a profession for Jones. It is also an industry lucky enough to have several well established associations that offer participants seemingly endless opportunities to connect with peers and mentors with shared interests. Indeed, Jones is actively engaged in the local real estate network, and it is for this aspect of his life that NAIOP has chosen to profile him as this years' Developing Leader. Jones currently volunteers as the chairperson for NAIOP's Vancouver Developing Leaders. Developing Leaders is a program targeted at members with less than 5 years of industry experience or who are under the age of 35. Jones became involved in the program 3 years ago when he was asked to help found and grow the Vancouver chapter. Jones is a strong proponent of the importance of networking for young people starting out in the industry, and he easily lists off several benefits that the program offers. Jones states that network- ing opportunities with senior members of the industry, educational programs ranging from large industry luncheons to podcasts, and opportunities to get involved with the various NAIOP committees, are just a few of the ways that people can, and should, get involved. Far from single minded and a having a strong belief in the importance of a 'life -work balance", the UBC BComm graduate (Finance and Urban Land Economics), and CFA Charter holder, enjoys some pretty adventurous activities during his off time. A Lower Mainland local, he talks openly of his love of the great outdoors, with rock climbing and ski touring being just a couple of his special interests. career»forward A NAIOP's Developing Leaders program: your career catalyst If you're a commercial real estate professional who's 35 or under, you know that "career" is a point that's constantly in motion. Your forward momentum depends on your drive, your expertise and your connections with others in your field. Your NAIOP Developing Leaders (DL) membership offers you: • Access to leaders in the profession, with opportunities to tap into their expertise • Connections to peers for more effective networking • Opportunities for mentoring and team - building • Timely industry information that gives you a competitive edge Interested? Start your engine: Call Derek Jones at djones@concertproperties.com now, and find out how NAIOP Vancouver can help you CareerForward—and faster. CareerForward with NAIOP Vancouver NAIOP DLDDEVELOPING LEADERS NAIOP would like to thank Jones for his various contributions over the years. Through all of his efforts he has shown that he is an outstanding example of what the up -coming generation has to offer to the ever changing world of real estate. Regional Office Development Cost Survey — Fall 2010 IR NOffice Environmental Sustainability Airport Executive Park Building Six by Sun Life Assurance Company of Canada Airport Executive Park Building 6 (AEP 6), located at 10851 Shellbridge Way in Richmond, is the result of a conscious decision to build one of the most modern, functional, and environmentally sustainable buildings in Richmond. Some of the building's key attributes include the use of locally sourced and recvcled building materials, extensive use of natural lighting, a green" housekeeping program, and an HVAC and building envelope system that is 25% more efficient than the baseline ASHRAE standard. T he building addresses the challenge faced by many developers today regarding concerns about the impacts of business and development on the envlror:ment. Sun Life Financial recognized this challenge and took a ieacership role to improve the design and construction to perform well beyor:a industry conventions. AEP 6 is Richmond's first LEED Gold Office Building, a certification that ensures long-term energy and occupancy cost savings for the tenant. Furthermore, the project demonstrates the commitment to environmen- tally sustainable business practices on behalf of both the landlord and the tenant Interested parties can take virtual tours of the building at AEP6 com Bu:;� ng Fads C ,mnaq�. Project Name: Location: New;Reno. Bu!wding Sr_e, Ofke/Health: Completion Date: Marketed By: Sun Life Assurance Company of Canada Airport Executive Park Building 6 (AEP 6) 10851 Shellbridge Way, Richmond, BC New 66,506 sf 66,506 sf January 2009 1 CUSHMAN & `s-= WAKERELDe Global Real Estate Solutions" Developed By: NA10P Gn M Y@RC I A f, REAL Ea to tE OEYE I.OPMEMt A58 DMATIDH ..Tno —Hcou— *, ..Aran Profile Innovative Use Grandview Woodland Community Health Centre by Wesgroup Properties The Grandview Woodlands Commu- no Health Facility is a product of a unique 10-year public -private partnership between Wesgroup and Vancouver Coastal Health (VCH). The site was chosen because of it's proximity to the Commercial & Broadway SkyTrain Station and, as a result, the facility is able to offer highly accessible and inclusive health services for the immediate neighbourhood and the surrounding area. The challenge for the project was to design a facility which enabled VCH to consolidate several health centres into one building, thereby keeping costs down, while maintaining the high level efficiency and quality of service that the community requires. To meet this challenge Wesgroup designed an innovative and efficient space plan, including dual employee work stations, and "stop -and -go - stations" whereby employees are able to temporarily connect to the VCH networks. Other features of the building include LEED Silver equivalency, a VRF system (efficient HVAC), and an air filtration system that brings air quality up to hospital grade specifications. The Grandview Woodlands Community Health Centre is an industry leader in innovative use because it successfully addresses one of the main issues facing many large organizations today — that of increasing efficiencies, decreasing costs, and consolidating operations while still maintaining a healthy environment for employees and customers. oullumg Fam Company: Wesgroup Properties Project Name- VCH Community Health Centre (Grandview Woodlands) Location: 1669 East Broadway, Vancouver New/Reno: New Building Size: 60,076 sf Office/Health: 50.000 sf Completion Date: August 2010 Sun glv(.k Life Financial Managed By: Bentall MARK CHAMBERS 604.640.5880 TIM EVANS 604.233.1009 Mark.Chambers@ca.cushwake.com TEvans@bentall.com r } Regional Office Development Cost Survey — Fall 2010 ------------- NAIOP Vancouver committees are very active and have won several awards including Chapter of the Year 2003, the Periodical Publication Award 2004 for the Cost of Doing Business Survey and the 2oo7 Annual Publication Award from NAIOP National. Through a grassroots network NAIOP seeks to create, protect and enhance property values. A10P COMMERCIAL REAL ESTATE DEVELOPMENT ASSOCIATION METRO VANCOUVER * CHAPTER NAIOP is a professional association with more than io,000 members across North America who represent { the interests of developers and owners of industrial, office and + related commercial real estate. NAICIP's Canadian network includes chapters in Vancouver, Calgary and Toronto. For more information on NAICIP —Vancouver Chapter or any of its events, please visit the website at www.naiopvcr.com, call 6o4-6o1-51o6 or fax 604-681-4545 Back (from left to right): Chuck We (Director at Large), Pav Sikham, CA (Treasurer) Bill Tucker (Director at Large), Jeff Rank (National Director), Stephanie Setchell (Events Committee Chair), Derek Jones (Developing Leaders Chair), Graeme Sitvera (Development Issues 6 Gov't Relations Chair), Bart Carbon (Education Committee Chair), John Conicella (Communications Committee Chair) Front (from left to right): Maury Dubuque (Vice President), Geoff Heu (President), Jocelyne Legal (Past President), Ernest Hee (Legal Counsel), Dan Harrison (Breakfast Committee Chair), John Scott (Sponsorship Committee Chair) M E . I�®/'Ar"Mfa 1 #rud er of NA10P l E. -JV v' Local networking opportunities through monthly breakfast speaker series and special events. Over the years, the Vancouver Chapter of NAIOP has featured speakers that include Mr. Bob Ackles, BC Lions, Mr. Brian Burke, formerly with the Canucks, Mayor Sam Sullivan, and the City of Vancouver Planner, Mr. Brent Toderian. ✓ National networking through conferences and access to NAIOP national database ✓ Industry and market information —through period publications and reports ✓ Educational opportunities —through special issue seminars and symposiums including the annual Developer's Symposium ✓ Access to NAIOP's online database and periodic newsletter ✓ Legislative voice — through our Legislative Issues and Government Affairs Committees ✓ Industry recognition — through our industry awards events Deep Roots Greater Heights TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Ernie Daykin and Members of Council Chief Administrative Officer DATE: January 5, 2011 FILE NO: E05-010-047 ATTN: Council Workshop Albion Dyking District and Maple Ridge Road 13 Dyking District EXECUTIVE SUMMARY: Through previous correspondence the Provincial Government has requested that the District of Maple Ridge assume responsibility for two Provincial Improvement Areas, Albion Dyking District ("ADD") and Maple Ridge Road 13 Dyking District ("MRRDD"). At the July 5, 2010 Council Workshop meeting, Council directed staff to send a letter to the Province requesting that they undertake a full assessment of the dykes, pump stations and associated assets and administrative costs to determine the most appropriate delivery of flood protection to property owners. Staff was also directed to send copies of the June 29, 2010 staff report to other local government affected by requests from the Province to accept the transfer of responsibility for Dyking Authorities. Additionally, a review of legislation was requested to ensure that the District's position is appropriate. The Province's response is attached. Deputy Minister Doug Konkin agreed that a comprehensive assessment is appropriate and requested that staff work with the regional office to identify the costs to complete this work. While the Province has the legal authority to dissolve dyking improvement districts and effect their transfer to other authorities or to impose maintenance and improvement requirements at their discretion municipalities may be able to influence the terms under which they assume responsibility for particular dykes. Council has previously acknowledged that prior to any transfer of responsibility it is imperative that the full cost of bringing these dykes and associates infrastructure up to Provincial standards be understood. In addition it is Council's previous position that these costs be borne by the Provincial Government. RECOMMENDATION: Submitted for information only. No resolution is required. DISCUSSION: a) Background Context: The District's legal counsel is in agreement with the approach being taken. Ultimately, the Province, through the Lieutenant Governor in Council and the dyking inspector, has broad unilateral authority to transfer the dyking districts to us or to impose maintenance and improvement requirements on the District. We cannot avoid these orders but we may be able to influence the terms under which the District assumes responsibility for the dykes. 1 of 3 4.3 Feedback from other Dyking District jurisdictions, as a result of the distribution of the copies of the June 29, 2010 staff report to other local governments, was consistent with the approach being taken by Maple Ridge. On September 21, 2010, District of Maple Ridge Staff met with representatives of the Ministry of Environment. At that meeting the Ministry outlined the requirement to upgrade the dykes to current seismic and flood protection levels. This aligns with the Ministry's letter of October 13, 2010 that `The Ministry concurs that a comprehensive assessment of the two diking systems would help to determine an appropriate level of flood protection plus it would provide useful information to support the ongoing maintenance and management of these assets.' b) Desired Outcome: An acceptable level of flood protection that services the interests of the local property owners and the District as a whole is required for these Dyking Districts and the most appropriate delivery of flood protection to property owners is required. A study will be required for a full assessment of the dykes, pump stations and associated assets. The Ministry has asked the District of Maple Ridge to work with Ministry of Environment staff to identify costs required to complete this work and will consider opportunities for funding. c) Citizen/Customer Implications: Property owners within the boundaries of the Dyking Districts are required to pay for all works on their dyking systems. This is done through a specific annual charge collected through the tax notice. d) Interdepartmental Implications: Staff are already acting in an unofficial capacity and tending to the ongoing maintenance issues of ADD and MRRDD. However, if the District accepts responsibility for the dykes in their current condition there would be additional responsibilities in terms of upgrading the flood protection. e) Business Plan/Financial Implications: To date improvements to the dykes have been funded through the Dyking Districts and/or Provincial grants. The Albion dyke was raised in 2007 as part of the response to the anticipated freshet that year. It is understood that the dyke needs to be raised further to meet current Provincial flood elevation requirements. A grant was approved in 2010 to raise a portion of the Albion dyke. Prior to this work being done the Ministry has requested that the Albion dyke be assessed against current seismic standards. 2of3 CONCLUSION The Ministry's letter is seen as a positive step towards identifying the costs to bring the dykes and associated infrastructure to current Provincial standards. District staff is currently working with Ministry staff to determine tkle appropriate methodology to determine those costs. It is Council's previous positiorj th0t .these costs be borne by the Province. Staff will continue to work with the Province on that basis. .� Prepared by: Russ Carmichael, AScT, Eng.L Manager of Corporate & Development Engineering Prepared by: Ceri Marlo, CIVIC Hager of Legislative Services by. Frank Quinn, MBA, P.En GM: Public Works &2re'velp6ment Services Concurrence: lief (Jim) Rule hief Administrative Officer 3of3 BRITISH CLER-K'S D1. COLUM_ BIA OCT The Best Place on Earth t 0 �>^. Reference: 128368 OCT 13 20 Ceri Marlo Manager of Legislative Services District of Maple Ridge 11995 Laney PI Maple Ridge BC V2X 6A9 Dear Ceri Marlo: Thank you for your letter of July 1.4, 2010 regarding the conversion and transfer of two improvement districts, the Albion Diking District and the Road 13 Diking District to the District of Maple Ridge. I apologize for the delay in responding. You advised in your letter that Council adopted the following resolution: "That the Province be requested to undertake a full assessment of the dykes, pump stations and associated assets to determine the most appropriate delivery of flood protection to property owners." The Ministry concurs that a comprehensive assessment of the two diking systems would help to determine an appropriate level of flood protection plus it would provide useful information to support the ongoing maintenance and management of these assets. While specific fiends have not been identified within current Ministry of Environment budget to undertake this work, I will continue to pursue opportunities to fund these studies. In the meantime I would ask that you work with staff from our regional office to identify the costs required to complete this work. I appreciate Council's interest in this matter. Yours truly, Doug Konkin Deputy Minister .../2 Ministry of Environment 0fficc of the Dcputy Xfinister Mailing.<•lddress: Telephone: 250 387-5429 110 Box 9339 5tn Prov Govt Facsimile: 250 387-6003 Victoria BC \'8\kr 9dll \X'ebsite: u-\uw.l;orr.bc.cafem- PC: Glen Brown, Executive Director, Local Government Infrastructure and Finance. Ministry of Community and Rural Development Dwayne Meredith, A/Director, Strategic Mitigation Programs, Ministry of Public Safety and Solicitor General Julia Berardinucci, Regional Manager, Lower Mainland Service Region, Ministry of Environment Neil. Peters, Head, Flood Safety Section, Lower Mainland Region. Ministry of Environment Deep Roots Greater Heights July 14, 2010 Mr. Doug Konkin, MLA Deputy Minister of Environment PO Box 9339 Stn Prov Govt Victoria, BC V8W 9M1 Dear Mr. Konkin: Re: Albion Dyking District and Maple Ridge Road 13 Dyking District The transfer of responsibility for the Albion Dyking District and Maple Ridge Road 13 Dyking District was further discussed at an open meeting of Council on July 5, 2010. Information obtained to date regarding the proposed transfer, including correspondence from your office dated January 26, 2010, was reviewed. An acceptable level of flood protection that serves the interests of the local property owners and the District as a whole is required for these Dyking Districts. The District must ensure there is enough information to establish that this can be accomplished within its fiscal abilities. Accordingly, the following resolution was adopted by Council: That the Province be requested to undertake a full assessment of the Dykes, pump stations and associated assets to determine the most appropriate delivery of flood protection to property owners. The District looks forward to working with the Ministry in this regard. Please feel free to have your staff contact me at cmarlo@mapleridge.ca or 604-467-7482. Again, thank you, Mr. Konkin, for your assistance in this matter. Yours truly, " /-� avc� Ceri Marlo Manager of Legislative Services cc Honourable Ben Stewart, Minister of Community and Rural Development Honourable Michael de Jong, Minister of Public Safety and Solicitor General Honourable Barry Penner, Minister of Environment Marc Dalton, MLA, Maple Ridge - Mission Glen Brown Executive r)irertnr I nrnl r,nxiernment InfrMoUl , IWn and Cln? nni.-,istr., f .� , I. n 1-st.-tulV Ul lu 1 11 lallVe, IVIII Ministry LIy of Community and Rural Development Dwayne Meredith, A/Director, Strategic Mitigation Programs, Ministry of Public Safety and Solicitor General Neil Peters, Inspector of Dikes, Ministry of Environment District of Maple Ridge 11995 Haney Place, Maple Ridge, BC V2X 6A9 Canada e Tel: 604-463-5221 • Fax: 604-467-7329 Deep Roots Greater Heights TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Ernie Daykin DATE: and Members of Council FILE NO January 5, 2011 E02-010-150 Chief Administrative Officer ATTN: Workshop Request for extension of deadline for funding of projects Downtown Road and Utility Rehabilitation Project and Albion Dike Upgrade EXECUTIVE SUMMARY: Over the recent years, the District received grant funding for a number of projects, including the Downtown Road and Utility Rehabilitation Project and Albion Dike Upgrade. These projects have been funded under Canada's Economic Action Plan (CEAP). The current deadline for funding these CEAP projects by the Province and Government of Canada is March 31, 2011. Recently, the Federal and Provincial Governments announced that extensions to October 31, 2011 may be granted if requested. However, consideration of such requests by municipalities require Council resolutions committing to finish the project and accepting responsibility for any costs incurred beyond October 31, 2011. The December letter provided a suggested Council resolution to accompany the formal request for an Both projects are expected to be completed within their schedule and no later than October 31, 2011, and as such staff is recommending that a request for extension be submitted and the following resolution be adopted. RECOMMENDATION: WHEREAS the federal and provincial governments will make a one-time extension of the deadline for funding of projects under the Building Canada Fund - Communities Top -Up from March 31, 2011 to October 31, 2011; AND WHEREAS all funding from the Government of Canada and the Province will cease after October 31, 2011; AND WHEREAS the District of Maple Ridge has asked the provincial government for an extension to October 31, 2011 for the following projects: Project Number Project Title Total eligible cost* Federal contribution* Provincial contribution* 25890 Downtown Core Road and U ili $5,605,465 $1,868,488 $1,868,488 (BCFCC-TU) Rehabilitation FPP Albion Dike Upgrade, Stage 2 $525,000 $ 175,000 $ 175,000 2009/10- 055,27479 (BCFCC-TU) 4A *Based on the approved grant application under the programs THEREFORE BE IT RESOLVED THAT the District of Maple Ridge attests that it will continue to contribute its share of the required funding for the aforementioned projects; AND BE IT FURTHER RESOLVED THAT actual claims for all eligible costs incurred by March 31, 2011 for the aforementioned projects must be and will be submitted no later than April 15, 2011 to the Province; AND BE IT FURTHER RESOLVED THAT the District of Maple Ridge will ensure that the projects will be completed. DISCUSSION: a) Background Context: The District received grant approval and is currently working the Downtown Road and Utility Rehabilitation Project, and an upgrade to the Albion Dike. These projects have been funded under Canada's Economic Action Plan. The second phase of the Downtown Enhancement Project is underway, materials and supplies have been ordered and construction is scheduled to proceed by the start of February (weather permitting). Design issues related to the upgrade of portions of Albion Dike have been identified and will allow the project to move to the detailed design stage. The current deadline for funding these projects by the Province and Government of Canada under Canada's Economic Action Plan program is March 31, 2011. Recently, the Provincial Government has announced that the extension to October 31, 2011 may be granted if requested. Based on the current construction schedule, it is prudent to request an extension to the funding. The Province has requested that a formal request be made and that a Council resolution accompany the request. b) Desired Outcome: The desired outcome of this report is to obtain Council approval and a formal resolution necessary to apply for an extension for funding for the listed projects. c) Strategic Alignment: The projects listed are partnerships with senior levels of government and are in alignment with Council's strategic direction. d) Business Plan/Financial Implications: Grant funding from both the provincial and federal governments has been secured for the projects. The extension for funding is important to the integrity of the Business Plan. Staff is confident with the schedule and estimated construction costs. CONCLUSIONS: Two key projects for the District, including the Downtown Road and Utility Rehabilitation Project are funded directly or indirectly by grants under Canada's Economic Action Plan. The current deadline for funding these projects by the Province and Government of Canada is March 31, 2011. Recently, the Federal and Provincial Government have announced that the extension may be granted if requested. This report recommends that Council adopt a resolution that will be a basis for an extension request. Prepared by: Apow Wood, PhD., PEng. unicipal Engineer Approved by: / Frank Quinn, MBA Eng. ►/ ene nag : P tc Works & Development Services Jv�� Concurrence: J.L. (Jim) Rule Chief Administrative Officer Deep Roots Greater Heights TO: FROM: SUBJECT: District of Maple Ridge His Worship Mayor Ernie Daykin and Members of Council Chief Administrative Officer DATE: January 5th, 2011 FILE NO: ATTN: Committee of the Whole Extension of Infrastructure Projects under the Economic Action Plan, North Alouette River Greenway and Vernon Bridge Crossing EXECUTIVE SUMMARY: The Government of Canada recently announced a one-time extension to the construction deadline for Infrastructure projects under the four Economic Action Plan stimulus programs. The March 31st, 2011 deadline may now be extended to October 31, 2011 for eligible projects. This extension will allow project proponents to benefit from an additional construction season to complete projects that are underway. The requests for an extension are to be submitted prior to January 14th, 2011. Although Staff are proceeding with the aim to complete construction prior to March 31st it may be prudent to request the extension based on the potential for construction delays due to the winter weather. In addition the ability to complete certain. aspects of construction during dryer weather later in the year could result in cost savings and a more refined finished product. - The North Alouette River Greenway Bridge/Trail Head and the Vernon Trail Bridge Replacement projects have received funding through the Local Motion and Recreational Infrastructure Canada (RinC) programs. The condition for an extension of these programs requires the following resolution from Municipal Council. RECOMMENDATION: WHEREAS the federal and provincial governments will make a one-time extension of the deadline for funding of projects under the Infrastructure Stimulus Fund from March 31st, 2011 to October 31st, 2011; AND WHEREAS all funding from the Government of Canada and the Province of British Columbia will cease after October 31st, 2011; AND WHEREAS the Corporation of the District of Maple Ridge has asked the provincial government for an extension to October 31st, 2011 for the following projects: Project Number Project Title Total Eligible Cost Federal Contribution Provincial Contribution 32276 North Alouette River $49,500 $24,750 $24,750 Greenway Crossing 09195 North Alouette River $497,000 $165,500 $0 Crossing, Vernon Bridge, and Trail Head Page 1 of 2 4,5 THEREFORE BE IT RESOLVED THAT the Corporation of the District of Maple Ridge attests that it will continue to contribute its share of the required funding for the aforementioned projects; AND BE IT FURTHER RESOLVED THAT actual claims for all eligible costs incurred by March 31st, 2011, for the aforementioned projects must be and will be submitted no later than April 15th, 2011 to the Province; AND BE IT FURTHER RESOLVED THAT the Corporation of the District of Maple Ridge will ensure that the projects will be completed. DISCUSSION: a) Background Context: The Federal Government recently announced the one-time extension to the construction deadline for infrastructure projects under the four Economic Action Plan stimulus programs. The intent of this extension is to allow for proponents, with projects now under construction, to benefit from an additional construction season. With the opportunity to complete the later stages of construction when the ground conditions are not saturated will result in better final land grading, habitat restoration planting and overall final appearance for the projects. Those seeking the extension are requested to provide prior to January 14th, 2011 a council resolution committing to finish the project and accepting responsibility for any costs incurred beyond the October 315t, 2011 date. b) Business Plan/Financial Implications: Council authorized staff on October 25th, 2010 to enter into an agreement with M2K Construction Ltd. for the construction of the North Alouette River Greenway Bridge Abutments and the tender for the Vernon Trail Bridge replacement. Council also authorized Staff to reallocate $300,000 indentified in the 2011 Parks Capital budget to this project. Based on price quotations recently received for the supply and delivery of the North Alouette River Greenway Bridge, Staff are confident that all three aspects of this project can be completed with the funds now allocated for this project. CONCLUSIONS: The opportunity to apply for a one-time extension for construction under the requested condition of a Council resolution should be pursued. The benefit of being able to complete the final stages of construction durin betterr`weatther will be a better finished project. �� / Prepared by: Bruce McLeod, MBCSLA Manager of Parks and Open Space concurrence: i.�-. (jim) Kuie ief Administrative Officer bmcl 7 ent, Parks and Leisure Services Page 2of2