The Town of Penhold's construction-related fee structures will be increased in 2015 after a three-year period of holding the line.
According to an administration document, the last increases took place in 2011 and it noted that since then the growth and development of Penhold has exerted an upward pressure on costs related to inspections and permit fees. Additionally, according to the document, the method of calculating fees will be changed from an outside dimension to a square footage basis.
“We're moving to the middle of the pack in terms of fees,” said Dennis Cooper, mayor of Penhold, of the changes.
The schedule of proposed changes covers development permits, building permits, inspection fees, plan amendments and other miscellaneous fees. In terms of increases, a multi-family unit of two to 10 suites will increase to $100 per unit instead of $75, while the largest increase will be in building permits.
A schedule of values per square foot was also adopted by council. The development permit value will range from $55 per square foot for a renovation, and up to $170 for a commercial building.
“A residential home of 2,154 square feet will cost $1,735.60 for a development permit based on both square footage and construction value,” said Cooper. “When we looked at municipalities around us there was a consensus that a change to square footage charge was coming.”
Administration noted that an assessment based on area and construction cost will mean fewer changes to fees and it will minimize value fluctuations. The increases will also put Penhold into the same competitive range as other municipalities in the region.
New charges under the rate change include encroachment agreements, advertisements, development and planning administration fees, extension fees and occupancy permits.
The new fee structure was approved unanimously by council and will take effect Jan. 1. Construction and land development companies will be notified of the increases. Information on the increases can be found online at www.townofpenhold.ca.
