Burnaby Updates

[Migrant_Coconut]

Major civic project funding on the line as Burnaby saw $175M shortfall in developer money last year

The City of Burnaby took in $175 million less than expected in developer money last year – and that spells trouble for the future of the city’s major community amenity projects.

Burnaby expected to pocket almost $237.2 million from developers in 2023, but the city only took in about $62.2 million, almost three-quarters less than expected, according to the city’s annual municipal report.

The city took in $250.7 million in 2022.

Through its community benefit bonus program, the city funnels the developer money into its reserves dedicated to affordable housing and community amenities like recreation centres, cultural facilities and space for non-profit organizations.

The program is “essential” for the city to pay for new community amenities, according to Noreen Kassam, the city’s chief financial officer and deputy CAO.

It allows the city to serve its growing population without raising property taxes or incurring external debt, Kassam wrote in the annual report.

She noted the amount of developer cash fluctuates year to year, depending on development activity in the city and market conditions...

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So property taxes need to go up, or Burnaby has to start picking fights with the homeowners... either way, the Corrigan model is no longer sustainable.