By Troy Gillard (Twitter: @Troy_Gillard)

Permit fees going up despite plea from home builders

Jan 15, 2019 | 9:10 PM

Local home builders say that given the economic challenges currently hitting their industry, now is not the time to increase costs.

In a letter to the City of Red Deer, BILD Central Alberta urged staff and council to reconsider increases to permit fees for developers and contractors.

BILD Central CEO Denie Olmstead wrote that the planned increases came as a “surprise.”

“The industry currently faces growing economic challenges on many different fronts. Over and above a tightening market and slowing economy, recently members have been subjected to numerous and varied programs that negatively impact our bottom line,” he explained.

“Our members are continually adjusting to federal, provincial and municipal demands placed on the industry. While the association appreciates that municipalities also must change to meet demands, to increase any cost now is one more burden that these businesses will have to carry.”

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As deliberations continued Tuesday for the 2019 Operating Budget, council heard that a comprehensive review found Red Deer’s permit fees to be low compared to most Alberta municipalities, including Red Deer County.

Existing city fees for residential and commercial plumbing, gas, heating and building permits ranged from $70 to $85, well below the market average of between $90 to $165.

Administration proposed raising fees to $100 across the board.

The City subsidizes between 69 to 81 per cent of these fees, leaving builders to cover the remaining cost.

Council debated whether to increase the fees effective April 1, 2019, September 1, 2019 or January 1, 2020. In the end they voted to implement the changes April 1.

Mayor Tara Veer, who cast the lone dissenting vote, wanted to wait until Sept. 1 citing the challenges the building industry is facing.

Other councillors, however, said they didn’t want to delay the new fees as they felt doing so would’ve burdened taxpayers.

Also approved Tuesday were new fees for safety code services along with penalties for safety code infractions.

Mayor Tara Veer gives an update on 2019 Operating Budget deliberations