Town of Gibsons to receive more than $1.7 million in fees and charges for the George

Developer Klaus Fuerniss’ contribution for a necessary upgrade of the Prowse Road sewage lift station remains unknown at this time

(by Margot Grant)

The Town of Gibsons will receive $1,073,175 in development cost charges for the development of the George Hotel and Residences.  Emanuel Machado, chief administrative officer of the Town of Gibsons, told The Coast Clarion the building permit fee is $352,780.

The development cost charges are: water $80,628.73; sanitary $101,738.59; drainage $70,880.73; roads $742,394.41, and Sunshine Coast Regional District facilities $77,532.67.

Development cost charges are a method of funding the infrastructure associated with growth. The Town of Gibsons is projected to grow from its present population of 4,500 to 10,000 in the coming years, according to Dave Newman, the town’s director of engineering. The funds for infrastructure improvements will be derived from development cost charges. Anyone obtaining a building permit has to pay into the fund proportionally per square meter or hectare; the rates are specified in the town’s development cost charges bylaw number 1218.

The bylaw was adopted on July 19, 2016.

A Freedom of Information request shows that on October 30, 2014, the town’s director of engineering, Dave Newman, sent Art Phillips, project manager for The George, an email with a quote of $2,696,662 for development cost charges — $1,623,487 more than the current charges.

On September 5, 2017, Newman explained the difference to The Coast Clarion: “The lower charges are based on the final floor areas. The earlier quote was based on an estimated larger floor area.”

The upgrade of the Prowse Road sewage lift station, necessary to accommodate additional discharge from the project, is not included in the development cost charges. Newman could not say how much the developer would be charged for the upgrade.

In addition to the development-cost charges and the building-permit fee, Fuerniss’ company will be required to post a $2.6-million bond. The bond is a regular requirement for construction with frontage or offsite work, Newman said. It provides security to the town until the work is completed.

The developer has deposited $100,000 for the redevelopment of Winegarden Park after the construction of The George. The park ia adjacent to the site and will suffer considerably from the construction activity. The total cost of the park redevelopment is unknown.

The developer has agreed to pay $156,648 into the town’s affordable housing reserve fund.

The developer’s company will also pay $61,600 for a sub-surface “air space parcel” for use as a parkade underneath Winn Road.

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3 comments

  1. I just read this again. 1.7 million for all this. Last week a small waterfront lot with a 1940’s cabin on it sold in 3 days for 1.2 million. The town will be paid the equivalent of a small lot with a tear down on it for all the above. What are we thinking – to destroy our inner harbour. Speaking of the inner harbour the dock is thick and slick with goose poop, the broken concrete lip barely under water at low tide is a trap waiting for the unsuspecting boat and trailer. The ramp needs new concrete. The unbelievable increase in traffic on the ramp and for parking, perhaps a parking attendant probably would cost close to 1.7 million. In a town hall meeting where people were complaining about the chip seal patch jobs and the terrible state of many of our roads, the town engineer explained the cost of paving as exorbitant. 1.7 M seems very small peanuts for losing the only drive-able access to the water front in an increasingly elderly population plus a chunk of our park, plus more traffic in an already congested area, plus plus plus Really, is this the only water front available on the coast?

  2. The headline should read that the Town of Gibsons expects to receive the amount mentioned. So how much have they actually received to date. And when are the other amounts payable? What is payable on issuance of the building permit which Is now “ready for pick-up”? What guarantee does the Town have that the funds will be paid?

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