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Land Use & PlanningABHARD

What is the significance of the Municipal Government Act's 'off-site levy' provision for Alberta land developers?

Correct Answer

D) It lets municipalities levy developers to fund infrastructure the new development needs, such as roads, water and sewer

Under the Municipal Government Act, municipalities can impose off-site levies on developers to recover costs of new or expanded infrastructure needed to support the development, including roads, water supply, sanitary sewers, and storm drainage. These levies can be significant and are an important cost consideration for Alberta land developers.

Answer Options
A
It allows developers to build outside municipal boundaries, provided they pay a levy to the neighbouring municipality
B
It exempts developers from property taxes during construction, in exchange for paying the levy up front
C
It requires developers to donate land for public parks, which the municipality holds as reserve for the new community
D
It lets municipalities levy developers to fund infrastructure the new development needs, such as roads, water and sewer

Why This Is the Correct Answer

Under the Municipal Government Act (Part 17), municipalities may impose off-site levies on developers to recover costs of new or expanded infrastructure necessitated by the development. This includes roads, water supply, sanitary sewers, and storm drainage facilities. The levy ensures growth pays for growth, a cornerstone principle of Alberta municipal finance law.

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Key Terms

off-site levyMunicipal Government Actinfrastructure fundingdeveloper costs
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