On February 10th, Council authorized flexibility for payment timing of Development Cost Charges (DCCs) and reinstating a two-stage development security collection procedure. The flexibility to establish and pay the DCC rate is authorized at either excavation, foundation, or full Building Permit (BP). The purpose of these changes is to support development viability and improve the allocation of staff resources and workloads. 

In terms of the two-stage security payment plan, the details include: 

• Stage 1 - Reduce Performance security due at 4th reading/subdivision approval from 110% to 25%; 
• Stage 2 - require the remaining 85% at BP issuance; 
• Modify the existing performance agreement to outline the new two-stage security deposit obligations; and 
• Enter into a s.219 covenant that would set out the use of a two-stage security deposit and would include an assumption clause for potential future owners. 

 Justifications for reinstating this include: 

• Freeing up cash flow for applications as the timeline between 4th reading/DP and BP issuance can vary from 6-10 months to years depending on project complexity; and 
• Aligning the receiving of financial securities closer to where the applicant receives project construction financing from their lender. 

More information can be found in the full report by City staff.