Latecomer Policy

Understanding the Latecomer Policy

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  Latecomer Policy details

  On October 19, 2021, Council provided endorsement of the Latecomer Policy PDF file (908 KB).

  The Latecomer Policy outlines how:

  • We will require latecomer eligible upgrades from initial developers, which are not funded by our Development Cost Levy ("DCL") program
  • The will settle latecomer agreements with an initial developer and administer this agreement over the course of its life (typically 15 years)

  Note The agreement has a maximum term of 15 years.

  Changing to existing process diagramPDF file (385 KB)

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  Definitions

  24 hour agreement

  A latecomer agreement where parcels in the benefitting area only pay a latecomer charge if they connect to the upgrade within 24 hours of completion of the upgrade. It is effectively a waiver by the initial developer for the collection of any latecomer charges from subsequent developments.

  Administrative payment

  The payment of $9,000 by the initial developer for the preparation and administration of the latecomer agreement by us.

  Benefitting areas

  Lands that connect to or benefit from an infrastructure asset that meets the definition of excess or extended service.

  Note Lands within a benefitting area may be subject to latecomer charges based on a cost apportionment method as determined by us.

  Cost apportionment

  The latecomer agreement, with the initial developer, will define the latecomer rate, which is the cost divided by the total developable floor area projected within the benefitting area, taking into account any exemptions, exclusions, and credits.

  Subsequent developers will be charged using the equation:

  Latecomer charge = Latecomer Rate x (SD’s GFA – (1 FSR x SD’s parcel site area))

  Where:
  SD = Subsequent developer
  GFA = gross floor area
  FSR = Floor space ratio

  Exclusion

  • To not include parcel in the boundaries of the benefitting area. These are typically lands that receive little to no benefit from an infrastructure upgrade.

  Excess or extended service

  • A street system that provides access to land other than the land being developed.
  • Water, sewage, or drainage systems that serve land other than the land being developed.

  Exemption

  • To not require payment of all or part of a latecomer charge by the owner of a parcel which is included in the benefitting area, based on specified criteria

  Final latecomer rate

  The per square metre rate based on the final work costs submitted by the initial developer; the amount which is approved by the City Engineer in accordance with the latecomer agreement and latecomer policy.

  Initial developer

  Owner of the initial development who delivers the latecomer eligible infrastructure asset that is required as a condition of rezoning, subdivision, or development permit issuance.

  Interest rate

  • The interest rate is 5.5%.
  • We may adjust the interest rate from time to time.

  Latecomer agreement

  The written agreement between us and the initial developer, entered into at rezoning, subdivision, or development permit, whereby the benefitting area is laid out, and the latecomer rate is specified. The latecomer agreement sets the terms for developers to recover costs associated with certain infrastructure works by cost-sharing with neighbouring properties that are developed within a maximum period of 15 years.

  Subsequent developer(s)

  Owner of the triggering development on a “benefitting parcel” within a benefitting area, which may be subject to a latecomer charge.

  Unfinalized latecomer rate

  The per square metre rate based on the projected work costs; the amount which is determined by the City Engineer in advance of construction of the work and includes contingency

  Utilities development cost levies (DCL) front-ender agreement (FEA)

  An agreement between us and a developer who finances and builds a project that would otherwise be funded by our utilities development cost levies program.

  A latecomer agreement is distinct and separate from a utilities DCL front-ender agreement. Refer to our guide PDF file (113 KB) for more information about the Utilities DCL front-ender agreement

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  Eligible projects

  As part of a rezoning or subdivision application process (review Step 2 of  "How Rezoning Works"), we may require a developer to construct infrastructure that serves not only their development, but also other lands in the neighbouring area

  In such circumstances, latecomer agreements may be initiated if the project meets the following conditions:

  • Infrastructure triggered by a rezoning or subdivision application submitted or approved after March 5, 2020 (Note Approval means having received either Council approval at a public hearing or a preliminary letter of approval.)
  • The infrastructure is not funded by the utilities DCL

  Approach to settling latecomer agreements for eligible projects

  Since introduction of the latecomer legislation in to the Vancouver Charter, we have seen over 100 projects approved with conditions for latecomer eligible infrastructure. These require either a latecomer agreement to allow development and the construction of the infrastructure to proceed.

  We are:

  • In the process of working through settling latecomer agreements (including 24 hour) with initial developers
  • Prioritizing our attention to those initial developments, which are furthest along in the development process (for example, those which are at building permit ahead of those at development permit)
  • Using “no development” or “no building” permit covenants to ensure it tracks those initial developments that are eligible for a latecomer agreement while allowing them to proceed through the development process (for example, reduce delay).

  Once a latecomer agreement is signed between us and the initial developer, we will start to take in deposits for latecomer charges from subsequent developers in the benefiting area. Subsequent developers will be notified through the development and building permit process that a latecomer charge security will be due at building permit issuance, and the final amount will be confirmed at occupancy for the subsequent developer’s parcel.

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  Eligible excess or extended infrastructure

  Eligible infrastructure

  Certain types of infrastructure assets will be eligible for cost recovery through a latecomer agreement. In general, sewer, water, and street systems may be eligible. 

  The General Manager of Engineering Services has further defined eligible infrastructure for:

  Sewers    

  • Construction of a new sewer or drainage system where a sewer or drainage system did not previously exist
  • Upgrade of an existing sewer or drainage system and we request that the developer oversize the system to provide servicing capacity greater than the needs of the initial development
  • Sewer separation of an existing system

  Water

  • Construction of a new water main where a water main did not previously exist
  • Upgrade of an existing water mainline

  Street systems

  • Construction of wider sidewalks or new sidewalks where they previously did not exist that extend beyond the frontage of the property
  • Construction of improved cycling facilities (for example, wider or separated) or new cycling facilities where they previously did not exist that extend beyond the frontage of the property
  • Net-new vehicle lanes or road structure upgrade that extend beyond the frontage of the property
  • Major geometric changes
  • Signal and Intersection improvements, such as:
    • Net-new traffic signals
    • Signal improvements, such as left-turn arrows
    • Net-new pedestrian signals
    • Pedestrian signal improvements, such as accessible pedestrian signals (APS)
    • Cycling signal improvements

  Important note Lighting improvements and other supportive infrastructure such as kiosks or power supply that are part of an eligible intersection upgrade will be included in the cost of the upgrade.

  Ineligible infrastructure

  The General Manager of Engineering Services has further defined ineligible infrastructure as:

  General

  • Projects or upgrades in the Development Cost Levy (DCL) or Utilities Development Cost Levy (UDCL) or Layered DCL
  • Upgrades that are internal to the development site property lines, as shown on the original application by the initial developer

  Sewers

  • Green infrastructure is considered ineligible

  Street system

  • Upgrades directly fronting the subject development
  • Road rehabilitation
  • Minor geometric changes (for example, corner bulges)
  • Traffic calming
  • Signal equipment modifications
  • Changing street lighting fixtures to LED
  • Other works that do not provide new or improved access for vehicles, pedestrians, or cyclists 

  Other

  • Structural assets (such as viaduct or bridge) support/upgrade associated or due to development
  • Third party utilities such as BC Hydro, Telus, Shaw, Fortis, District Energy, etc

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  Background documents

  • Bill 10 – Municipal Affairs and Housing Statues Amendment Act (2020) External website, opens in new tab
    • BC Legislative Assembly passing amendments to the Vancouver Charter.
    •  Authorizes the City to use latecomers using the powers as other BC municipalities
  • BC Ministry of Finance – Latecomer agreements External website, opens in new tab
  • Utilities DCL front-ender agreement guide PDF file (113 KB)
  • City Engineering design manual PDF file (10 MB)

  Other types of contributions

  • City-Wide DCL 
  • Utilities DCL