Can we build?
That was the big question posed by local developers and builders to the Town of Golden at a recent meeting held between the parties. The tension was palpable as stakeholders from both sides discussed the state of Golden’s aging infrastructure and significant approval delays affecting new real-estate developments in town.
Over two dozen developers, property owners, investors, and construction companies gathered on February 25th to meet with representatives from the Town of Golden, including newly appointed Chief Administrative Officer Jeremy Denegar, Director of Public Works Chris Cochran, and Director of Planning & Development Phil Armstrong. External stakeholders, including the Chamber of Commerce and Tourism Golden, were also in attendance.
The meeting, scheduled at the request of the developers and other interested parties, was mediated by Kristopher King of Ridge North America. The Town’s representatives kicked things off by providing a status report on the current challenges facing Golden’s infrastructure, primarily related to water and sewer system capacity, including lift and booster stations, several of which require upgrades to meet even current volume demands.
That is where frustrations start for developers. Despite modest historical population growth and moderate expectations for future commercial growth, much of the Town’s current infrastructure is already at or nearing capacity. As a result, dozens of submitted development project applications are on hold pending approval, with several waiting for more than two years. One meeting attendee cited poor communication from the Town’s Planning & Development department, claiming to have waited four years for feedback on a particular application.
It’s estimated that over $100 million in residential and commercial developments, including houses, apartments, and hotels, are currently stalled due to the Town’s incapacity to provide the needed infrastructure to support the projects.
The Problem: High Costs and a Lack of Available Funds
Local government has historically underfunded infrastructure and does not have the necessary reserves to cover the costs themselves. Over the past 20 to 30 years, Town Council has been reluctant to raise taxes, which has now caught up and is contributing to the issue.
But increasing taxes for residents of Golden alone won’t be enough. Replacement and maintenance costs are too high and simply cannot be achieved through taxation alone.
“The Town has existing infrastructure that requires ongoing investment from taxpayers, separate from the infrastructure needed to support growth,” said Chris Cochran, Director of Public Works.
Compounding the issue is the fact that the Town of Golden has been aware of some of these problems for several years. Yet, developers claim they were only made aware of the extent of the problem six months ago. Now, they are facing the harsh reality of paying higher Development Cost Charges (DCCs)—the fees collected from developers and placed in reserves to help fund these necessary upgrades.
“DCCs help make sure that development pays for the infrastructure it relies on and helps provide some certainty of funding for future construction of growth-related infrastructure,” said Phil Armstrong, Director of Planning & Development for the Town of Golden. “We recognize the importance of balancing sustainable growth with fair development costs, and we are committed to working closely with the development community throughout this process.”
All DCCs do include a small municipal assist factor.
Updating the DCC Bylaw
The Town of Golden is working with consulting firm Urban Systems Ltd. to update the current DCC Bylaw, ensuring that growth-related infrastructure needs are contributed to fairly and distributed among different developers across the community. The Town’s current DCC Bylaw was adopted in 2012 and includes charges for water and sewer. The updated bylaw will incorporate new DCC categories, such as transportation and parks, reflecting the needs of the growing community.
The DCC update process is structured into four key phases (see page 5 for Town of Golden statement):
• Phase 1: Background Review (September 2024 – February 2025) – Reviewing master plans and preparing funding approaches.
• Phase 2: DCC Calculation (March – April 2025) – Developing financial models and draft rates for Council review.
• Phase 3: Consultation and Engagement (May – June 2025) – Engaging with stakeholders and the public and refining proposed DCC rates.
• Phase 4: Provincial Approvals (July – December 2025) – Securing approval from the Inspector of Municipalities before Council adoption of the new DCC Bylaw.
Developers are not keen on paying higher DCCs, nor the fact that the DCC program will only be able to fund some of the Town’s identified infrastructure needs. As per a press release issued by the Town of Golden following the meeting:
“Some developments will be required to fund or build certain offsite infrastructure in order to develop their properties that are either not part of the DCC program or where there are not adequate funds within the DCC reserve funds at the time they are seeking to develop.”
Developers don’t want to foot the bill for these upgrade costs. “If Golden can’t pay for it, we can’t pay for it either,” quipped one of the developers at the meeting.
Moving Toward a Solution
The good news is that the Town is adopting a more transparent approach, providing access to reports and plans via its website, publishing Town Council meetings on its YouTube channel, and actively engaging in dialogue with the developers’ group and related stakeholders. The Town will also be exploring additional development financing tools to ensure flexibility in funding infrastructure projects.
Unfortunately, this decades-old problem is now at the forefront of Golden’s future. Developers and the Town find themselves at a crossroads where cooperation and a mutually beneficial action plan are critical. Although dialogue is now open, the solution may not come quickly.
Aside from updating the DCC Bylaw, support from Town Council in the form of increased taxes may be required to help pay for some of the public works that will allow Golden to continue growing steadily over the coming decade. And even with the best-laid plans, if work started today, it would still take years to complete.
The question remains: Can we build here over the next five years? Stay tuned—more to come as this story unfolds.
To learn more about the Town of Golden’s plans visit www.golden.ca/dcc
