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1. What is a development cost charge (DCC)?

Development Cost Charges (DCCs) are fees charged on new developments to help pay for the cost of expanding and upgrading infrastructure needed to support growth. This includes transportation, water, sewer, drainage, and park infrastructure. Recent changes to provincial legislation now allow local governments to use DCCs to fund additional services, such as fire protection facilities, policy services, and solid waste and recycling facilities.

2. Who pays DCCs?

DCCs are paid by applicants for:

• Subdivision approval to create single family lots
• Building permits for multi-family, commercial, industrial, and institutional developments.

Note: developments are exempt from DCCs when the value of work authorized at building permit is $150,000 or less. Additional examples may apply under the Local Government Act. Contact City staff for full details.

3. How are DCCs calculated?

DCCs are based on:

• Land use and growth projections as established by the City planning documents
• Costed capital infrastructure plans 
• Growth-related project costs (DCC Recoverable Costs)  divided by the projected growth

4. How can DCCs be paid?

DCCs can be paid by cash, certified cheque and bank draft.

5. Can DCCs be paid in installments?

Yes. If City DCCs total $50,000 or more, developers may pay in one-third installments:

• Pay one-third of the DCC amount and a financial administration fee before subdivision approval or building permit issuance.
• Provide a Letter of Credit (LOC) as security for the remaining two-thirds.
• Pay the second installment one year later and the final installment two years later (as per invoice due dates).

Important Notes:

• LOCs are a security requirement but not a form of payment. Payments must be made by bank draft or certified cheque.
• If a developer chooses to pay DCCs in installments but misses a payment deadline, the full DCC balance becomes immediately due. The City will then use the Letter(s) of Credit to recover the total amount.

The Finance team will contact you one month before payments are due. Provide a generic company email to ensure timely reminders and notify the Finance Department if your contact details change. Once payments are complete, the City will adjust or release the LOC.

6. Do I need more than one Letter of Credit (LOC) ?

No. One Letter of Credit (LOC) can cover the total amount for the last two installments. Ensure the correct file number is listed on the LOC to apply it to the right project. You can request an LOC template or submit drafts for review to PlanningProjectFinancials@coquitlam.ca. If preferred, you may provide separate LOCs for each installment. 

7. What types of projects are DCCs used to fund?

DCCs fund infrastructure projects to support growth, including:

Transportation:

• New roads, bridges
• Pedestrian and bike overpasses
• Road widening, sidewalks and street improvements
• Bridge replacement, turning bays and signalization

Water: New/upgraded water mains, pump stations and reservoirs

Sewer: New trunk sewer mains, sanitary pump stations and sewer upgrades

 Drainage: 

• Storm sewer and culvert Upgrades
• New storm pump stations and water quality ponds
• Stream erosion control 

 Parks: 

• Parkland acquisition (neighbourhood, city and community parks)
• Trails, greenways and park improvements

8. How are DCC projects and growth projections determined?

DCC projects and costs are determined using:

• Growth statistics and projections for Coquitlam
• Technical infrastructure plans (e.g. Strategic Transportation Plan, and Parks, Recreation and Culture Master Plan)
• Capital costs based on recent studies and project tenders
• The portion of costs specifically tied to growth-related needs