The Nanaimo Regional Landfill is utilized by the City and all areas of the RDN, and is expected to reach the end of its lifespan by 2050, increasing the RDN's need to think of how they'll pay for waste and recycling collection facilities in the future. (RDN)

By Jordan Davidson

development cost charge

‘Hugely flawed:’ RDN considers first-of-its-kind development charge to pay for future waste facilities

May 15, 2025 | 5:25 AM

NANAIMO — The Regional District of Nanaimo (RDN) wants to implement a new charge for developments to help offset the costs for new solid waste and recycling facilities, but it’s already facing some early hurdles.

During their Tuesday, May 13 board meeting, RDN Directors decided to send the proposed bylaw back to the committee stage for further review, after they couldn’t agree to pass the first reading.

The bylaw would create a solid waste and recycling facilities development cost charge (DCC) for eligible projects with a construction value of $50,000 or more, with a potential to generate around $127 million a year in revenue, based on estimates from current projects which would qualify for a DCC.

Director Doug O’Brien wasn’t in favour of the proposed bylaw, stating they’re currently in a “sweet spot” with their current DCCs, and any further fees incurred by developers would just be passed on to consumers.

“We’re under huge pressure to provide affordable housing. Any form of DCC in addition to what is already in place…means that the developer is going to pay for it…but in the end, that is reflected on the sale price. Now, if we’re going to propose another one, it’s going to put the brakes on the development that comes to our area….I see hardship coming from this.”

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The RDN estimates 39 per cent of its waste is generated by the residential sector, followed by commercial developments at 30 per cent, then institutional at 17 per cent, and industrial at 12 per cent.

Conservative estimates for population growth are at 1.1 per cent, with the RDN projecting around 56,000 new residents living in the area by 2050.

The costs of the proposed DCC would be based on the number of dwelling units for residential developments, while a DCC for commercial, industrial, and institutional developments would be based on their size.

If passed, this would make the RDN the first municipality in the province to implement this type of DCC, made possible due to the passing of Bill 46, The Housing Statutes (Development Financing) Amendment Act, in November 2023.

The RDN is the first municipality in the province to attempt to implement a waste-facility focused DCC under this new legislation, according to the board.

The bill adds new categories for where DCC can apply, with the RDN planning to use this to help pay for the capital costs of off-site infrastructure services needed to accommodate future population growth and new developments.

A look at the proposed cost charge schedule based on the May 13, 2025, RDN board meeting. (RDN)

Electoral Area H director Stuart McLean questioned why they estimated the amount of future waste production using the predicted number of people moving to the area, saying it’s “highly unfair” for rural areas to face the same fees as urban zones.

“That doesn’t take into account the vast difference in planning across the region where, yes, in Nanaimo, of course you want to promote high-density. But say in Bowser, we don’t have a sewage system, so there’s no way to have higher density,” said McLean. “This is essentially an extra tax on electoral areas because of the difference in planning…. it’s all going to be single-family dwellings in rural areas.”

Director for Electoral Area A Jessica Stanley, who made the motion to send it back to the committee phase, said they need to consider “rural land-use perspectives” and the threshold for triggering the DCC, which can be increased from $50,000 but not decreased, according to provincial regulations.

“When we look at the $50,000 threshold, that is a bathroom renovation. So I don’t think that we should be having community members pay DCCs because they do relatively minor renovations to their homes, said Stanley. “I think that’s hugely flawed. I don’t think we go to public consultation when we have something that I think is that problematic.”

The board is also counting on full compliance with their recently enacted mandatory waste separation bylaw to help reduce the amount of garbage added to their landfill.

The bylaw, which came into effect on Jan 1, requires all commercial, institutional, industrial and multi-family homes without curbside pickup to properly sort and dispose of their waste.

While the proposed bylaw is back to the committee stage for further review, the solid waste and recycling facilities DCC bylaw would still need to go through a public consultation phase prior to second and third reading and final adoption.

The majority voted to send it back to the committee stage, with directors Janice Parino, Leonard Krog, Teunis Westbroek, Bob Rogers, and Mark Swain all voting against the motion.

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