Developers push back against Saskatoon school land levies

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School land levies are set to increase for new neighbourhoods in Saskatoon, and developers say they’re concerned about the added costs as the city faces a housing crisis.

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The elementary school land levy is based on the year-to-year cost of acquiring 10 acres of land (formerly eight acres) for potential school sites.

The levy is applied to neighbourhoods like Brighton and Elk Point. Kensington and Aspen Ridge are exceptions, and will be charged the eight-acre rate because they’ve already been developed to a point where the school sites can’t be expanded to 10 acres, city council heard on Wednesday.

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With the new rates, residents in Brighton, Elk Point and future neighbourhoods are expected to pay an elementary school land levy of $230.50, up from the $183.50 rate approved for 2023.

Starting in 2025, a high school land levy will be established, based on the year-to-year cost of purchasing 28 acres for future high-school sites for every four developing neighbourhoods.

According to the city administration, by the time the new Holmwood high school opens, the city’s population is expected to have increased by 110,000 people, the equivalent of eight or nine neighbourhoods.

Based on that prediction, the city has changed its initial recommendation to spread the cost over eight neighbourhoods instead of four, reducing the levy to $89.30.

The city has said it also wants to approach the province to find a better solution and potentially reduce or eliminate the high school land levy.

Saskatoon and Region Homebuilders’ Association CEO Nicole Burgess told council that new levies put additional financial burdens on builders, which are then passed on to home buyers, undermining housing affordability.

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Nothing in the provincial planning and development act authorizes levies for school land, Burgess said.

“The city solicitor’s initial response, claiming there is nothing saying it isn’t permitted, does not align with the act’s specificity.”

Saskatoon has some of the highest development levies for single-family homes in Canada, second only to Surrey, B.C., she added.

Additional costs discourage development in Saskatoon, and new schools benefit all citizens, so placing the financial burden on buyers of new homes is inequitable, Burgess argued.

The city should defer the levies until they can be legally verified, and stakeholders like the homebuilders’ association should be a part of the conversation when the city approaches the province to look for a different solution, she added.

The association has filed a motion for a judicial review, but it picked the latest possible court date in the hope that the issue can be resolved another way, Burgess said, adding that the association has approached the province for its interpretation of the planning and development act, but never received any.

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Legislative changes making municipalities responsible for providing land for schools were enacted in 2018.

“There are consequences to this legislation and this downloading onto municipalities,” Burgess said.

Coun. Troy Davies asked what would happen if the city loses in court; administrative staff replies that ultimately the levies would be struck down and the money refunded.

Coun. Randy Donhauer asked what consultation has happened with stakeholders, saying it was his understanding back in May that a similar request had been made.

“One of the only reasons I voted for this in the spring was that we were directing administration to come up with another solution with the province, with some urgency. And here we are at the end of the year and it doesn’t look like that happened,” Donhauer said.

The administration said meetings were held with developers during the summer, adding that Regina is in a similar situation, and the recommendation stands that the city needs to meet with the province.

City manager Jeff Jorgenson said the province has come forward to help with the purchase of school land, but further lobbying should happen.

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“How likely we are to be successful, I can make no comment on, but there’s absolutely no downside to that work,” Jorgenson said.

Council voted in favour of a motion to include other stakeholders in the conversation with the province.

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