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What is a Development/Service Agreement?

  • A contractual agreement between the City and developer
  • It ensures that infrastructure required to service a proposed development is constructed to the City’s municipal standards.
  • Servicing Agreements also contain provisions for the payment of applicable levies and securities
  • It may contain provision for payment for services previously installed by others that benefited the new subdivision, or alternatively any moneys that will be owing to the developer when further development occurs by others.
  • These agreements are required as a condition of some development permits and most subdivision approvals in accordance with Section 655 of the Municipal Government Act.

What is the Service Agreement Process?

  • The first step in the servicing agreement process occurs when a developer comes in to discuss the development and servicing of a parcel of land.
    • This process may include either an application for a Development Permit (Major) and/or a Subdivision Application.
  • When a Development Permit and/or Subdivision Approval has been approved with the condition of a service agreement, the developer will then initiate the servicing agreement process.
  • The developer must enter into the agreement prior to construction of any municipal improvements or infrastructure on City owned land, right-of-way, or future City lands.  
  • Once detailed drawings are submitted and accepted, the Development Engineer will work out the terms and conditions of the Servicing Agreement with the Engineering Consultant.
  • A servicing agreement draft will be drawn up by the City.
  • Once the final draft has been approved by both the developer and the City, final copies are prepared for the developer to endorse.
  • Once the conditions of endorsement are met, the agreement is sent to the City Clerk and the Mayor for City endorsement.
  • The return of the signed agreement to the developer constitutes as a legal binding contract between the City and developer.
  • The monitoring of this contract becomes the responsibility of the Development Engineering Coordinator.

Request for Preparation of Service Agreement (PDF 107KB)

Service Agreement Instructions - Currently under revision

Servicing Agreement (PDF 318KB)

Servicing Agreement Inspection Request Form (PDF 126KB)

Transportation Off-Site Levy:

The current Transportation Off-Site Levy Bylaw (#C-1197) was adopted by City Council on September 22, 2008. The bylaw included the following clause:

“11.3. If no update to Schedule “D” is made by Council by March 31 in a given year, the
amount of the Transportation Off-site Levy rates shall be automatically adjusted on
March 31 of that year by the annual percentage change in the Consumer Price Index
for the previous calendar year. The adjustment shall be made to the previous years
Transportation Off-site Levy as adjusted pursuant to this section.”

The 2017 Transportation System Levy was $60,158.26 per gross hectare. The 2017 “Schedule C” for New Two Lane Rural Roadway Unit Costs was $1,135.22 / l.m.

The annual percent change in the Consumer Price Index for the province of Alberta as determined by Statistics Canada between January 2017 and January 2018 was published as 1.4% (Statistics Canada Website).

https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=1810000413

Therefore, the new Transportation Levy amount is to be set at $61,000.48 and the new Road Unit Costs per l.m. is set at $1,151.11.

Service Agreement Contact:

Engineering Services, City Service Centre
9505-112 Street Grande Prairie AB

780-538-0490

Mailing Address:

P.O Bag 4000
Grande Prairie, AB, T8V 6V3

Last updated: 11/15/2018 9:54:36 AM