COCHRANE— Cochrane Council has directed the Town of Cochrane Administration to waive applicable development permit and building permit fees for the Town's Transit and Innovation Hub and Protective Services Building projects.
The builds are two of several major capital projects being undertaken by the Town of Cochrane, said general manager of development and community services Drew Hyndman at the regular council meeting Tuesday (May 25).
In the past the Town has charged itself for development and building fees, Hyndman said, and administration requested these fees be waived for the Transit Hub and Protective Services Building.
Council is expected to review a policy recommending that all Town projects not be subject to these fees in the future.
“We would be doing this work anyway,” Hyndman said.
Hyndman said based on his previous experience municipalities have not typically charged themselves for projects given the staff resources that are used for the completion of a project.
Overall, these fees add to the general financial costs of a project, he said.
Saving funds for the Town is becoming increasingly important given the rising costs of building materials, which can be addressed through the use of contingency funding, he said, and having the Town charge itself for fees only adds to the cost of a project.
The biggest implication of these fees is they are incorporated into the cost of a project, including any borrowing funds. Hyndman said factoring these costs in to loan requests can lead to a greater accumulation of interest for the Town.
He added charging for the permit is not the main concern in regards to fees, but by waiving the costs of charging the Town auxiliary pieces including staff time to process requests and potential financial charges can be eliminated.
Councillor Marni Fedeyko praised the motion as a way to find efficiencies and cost savings in the Town. She added administration could explore other areas in the Town's administration to ensure fees are not being collected when they do not need to be.
Mayor Jeff Genung said the decision makes sound financial sense.
“It doesn’t make sense to charge ourselves for a fee that we will then potentially put on a borrowing bylaw or borrow against and accrue interest on and charge that to the taxpayer in a sense through taxes on a project that we’re already undertaking,” Genung said.
He added this will in no way waive the necessary bylaws, procedures and policies in place when it comes to the undertaking and development of a project— The move will only affect the charging of fees for services.
“We’re not going to take money out of this pocket and put it in this pocket,” Genung said.
