Special meeting on Monday to discuss controversial housing development

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A staff report summarizing the new cost analysis found the development would generate roughly $7.1-million in annual property tax revenues.

580 Commonage Development

Special meeting on Monday to discuss controversial housing development

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However, it said the development would have indirect operating costs for services, such as police, fire protection, and transit, of around $8.1-million; annual operations and maintenance of new infrastructure costs of around $900,000; and annual life cycle replacements of $3.55-million.

That total cost of $12.55-million total represents an annual funding gap of around $5.45-million annually.

However, Kerkhoff Develop-Build said in a release the new lifecycle cost analysis did not tell the whole story.

“The report has omitted a key revenue stream consisting of $100 million in development cost charges (DCCs) that will be collected as the project proceeds over the next two decades,” Leonard Kerkhoff, President and CEO of Kerkhoff Develop-Build, stated.

“What’s puzzling is the terms of reference approved by Vernon City Council for this cost review stated DCC’s were to be included, but the report leaves this out and bases everything on tax revenue alone. When you add DCCs of $100 million over 20 years, as estimated by the city itself, this is essentially a break-even project.”

Kerkhoff went on to say the project would provide “$2-billion in economic investment in the region over the next 20 years,” and adding “most importantly, there will be permanent family housing that will help local businesses keep skilled employees living and working in Vernon.”

The new lifecycle cost analysis will be discussed at a special council meeting at 8:30 a.m. June 1.

City staff recommended the report be received; that second reading be given to an Official Community Plan amendment for the project; that a public hearing be scheduled for June 15 at the Schubert Centre; and that final adoption of the amendment be considered subsequent to the the registration of a Restrictive Covenant for Attainable Housing and the execution of a Memorandum of Understanding for Infrastructure and Amenities Implementation Framework.