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Tax on new developments to fund new schools in Nanaimo-Ladysmith

Nanaimo-Ladysmith School District is projecting a surge in population growth
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An estimated $14.7 million in land is expected to be needed in the Nanaimo-Ladysmith district in the coming decade for new schools or additions to existing schools, although that figure could increase given rising land prices. VIA GOOGLE STREET VIEW

The Nanaimo-Ladysmith School District is imposing new charges on residential developments to help pay for land for new schools or school additions that will be needed as the region’s population grows.

The new bylaw setting out charges reflects the district’s expectation of “considerable growth” over the next decade.

Nanaimo, with a population of 100,000, is one of the five fastest-growing cities in the country, said Charlene McKay, chair of the district’s board. “With more students coming, we need to make sure we have space for them in the classroom.”

Mark Walsh, school district secretary treasurer said the school site acquisition charge is part of a proactive plan to prepare for growth. “We are doing our best so we are not going to have to catch up later.”

Land acquisition charges will apply in Nanaimo, Lantzville, Ladysmith, the regional districts of Nanaimo and the Cowichan Valley, and Islands Trust.

The bylaw sets out a range of charges for builders, depending on the density of a development. Municipalities will collect the charges on behalf of the school district.

Charges are levied when a property is subdivided or a building permit is issued. Provincial rules do not allow for multiple charges throughout the development process.

In the Nanaimo-Ladysmith School District, projects with fewer than 21 units per hectare would cost a developer up to $1,000 per unit in school site acquisition fees, while $600 per unit would be charged for projects of more than 200 units per hectare.

Developments with fewer than four units are exempt, but local governments can approve a bylaw to reduce that to two units.

If all parties agree, the charge can be waived for developers who provide land instead of a cash payment.

An estimated $14.7 million in land is expected to be needed in the Nanaimo-Ladysmith district in the coming decade for new schools or additions to existing schools, although that figure could increase given rising land prices, Walsh said.

The district estimates a potential 7,630 housing units could be developed over 10 years.

Enrolment in the 2020-2021 school year was 13,281. By 2030-2031, that could rise to 17,966, according to consultants hired to prepare forecasts.

Some have asked why closed schools are not being reopened, but they are not all located where growth is expected, the district said.

The northwest part of the school district is growing by “leaps and bounds” and will likely need a new school site, Walsh said.

Some other school districts, including Sooke, already have site acquisition charges, which are permitted under provincial legislation.

cjwilson@timescolonist.com