Big payday with Banks Cres.

The controversial Banks Crescent development in Summerland would generate an additional $429,000 in annual net income for the municipality, the equivalent of a 5.7 per cent property tax increase.

A detailed financial analysis prepared by district staff is going before council next week, outlining revenues and infrastructure costs the community would sustain should the 415-unit seniors housing development be built.

Based on discussions with BC Assessment, the completed development would have a value in excess of $94M, generating $296,000 in property taxes under the 2017 rate.

That would be offset by about $13,000 in increased spending per year on roads and fire protection.

“Based on discussions with the District of Summerland’s fire chief, the fire department has identified some potential concerns with the construction of this development,” the report states. “However, mitigation of these concerns is all at the expense of the developer.”

Summerland would lose $54,000 per year selling electricity to the development, but make back nearly $200,000 with wastewater and sewer fees.

In March, the District stated a one per cent property tax increase would generate $75,000 in new revenue.

The district would also collect over $2.9M in development cost charges from the project, doubling the district’s current DCC reserves. Development cost charges are used to fund infrastructure projects throughout the community.

The report features a lengthy list of projects that could move ahead with the DCC funding provided by the Lark Group development; including improvements to various roads or upgrades to green space and the purchase of new park land along Lakeshore Drive.

All the money in the world, however, won’t get the project green-lit without the approval of the nearby trout hatchery, which is currently opposed due to concerns over the development's impacts on its water source.

A third-party review of Lark Group’s plans to protect the aquifer is pending, with councillors acknowledging earlier this year, the hatchery’s concerns need to be mitigated before anything moves forward.

More than 2,200 Summerland residents have signed a petition against the project. It would add about 1,000 people to the community.

A public hearing date for the project will likely not be set until next year.


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