skip to Main Content

Land value tax should replace community amenity contributions

By Raza Mirza for Business in Vancouver

According to the City of Vancouver, “community amenity contributions (CACs) are in-kind or cash contributions provided by property developers when city council grants development rights through rezoning.”

CACs are simple to explain, an easy sell for the city: the property developer who is asking for rezoning, often resulting in extra density, should pay for the amenities needed to support the new density. Not surprisingly, the development industry doesn’t like CACs and wants mass rezoning and relaxed regulation for easy profit. For anti-development industry folks, CACs are a way to stick it to developers that prioritize profits over housing needs of the local working residents. But the reality is very different.

Vancouver Real Estate News, Market Updates, Insider Tips, Stats, & Analysis

Sign up for insider real estate news & tips from our podcasting team.

Are you a realtor? Click here
Selling Your Home? Click here

  • Reload
  • Should be Empty:

In business, backers expect a profit margin on total investment. For property developers, CACs are another cost that needs to be financed. While additional cost is simply passed on to the buyers, the developers also expect a profit on every CAC dollar they put in. If CACs add 25% to the cost, the developers walk away with original profit plus 25% extra profit made on investment used to pay CACs.

Continue reading the full story here >>
 

This Post Has 0 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

As Seen and Heard On

Media enquiries and press contact info: media@vancouverrealestatepodcast.com

© 2020 Matt Scalena PREC* & Adam Scalena PREC* , all rights reserved • Site MapBy Line49 Web Design, Vancouver BC

*Considering a real estate transaction? One of the first decisions you will need to make is whether you should work with a licensed real estate professional who will represent you. Take a moment to read this important consumer protection information from the Real Estate Council of BC. This form explains the special legal duties that real estate professionals owe to their clients. CLICK HERE and please call 778-847-2854 or 778-866-4574 immediately if you would like to discuss.

Back To Top