Banff Hikes Developer Parking Buyout Fee to $35,000 per Stall

Developers who choose to pay the Town of Banff instead of building required parking spaces will soon face a significantly higher bill after council approved the municipality's first increase to its parking cash-in-lieu rate in 26 years.

Council unanimously approved amendments to the Town of Banff's Fees and Charges Bylaw on July 14, increasing the parking cash-in-lieu rate from $21,000 to $35,000 per stall.

The cash-in-lieu program allows developers, in certain circumstances, to pay a fee instead of building some or all of the parking spaces required for a project. The town uses that money to help fund public parking infrastructure.

The increase drew opposition from the Banff & Lake Louise Hospitality Association, which argued the higher fee would make it more difficult for small businesses to expand or redevelop their properties.

"A near-doubling of a significant business cost deserves a stronger foundation than what has been presented to date," association president and CEO Mike Kelly wrote in a submission to council.

Kelly urged council to delay approval until a broader community parking strategy is completed, arguing parking availability is a community-wide issue rather than one that should be addressed solely through developer fees.

"We also ask Council to include BLLHA as a stakeholder in developing a viable, transparent, long-term parking strategy for Banff," Kelly wrote.

Council ultimately sided with administration's recommendation, approving the increase unanimously.

Administration said the existing rate no longer reflects the cost of building parkades and leaves taxpayers subsidizing private development. The increase marks the first adjustment to the rate since 1999, when it was raised from $13,000 to $21,000 per stall.

According to the administration report, it now costs between $70,000 and $80,000 to build a single parking stall in a parkade, meaning the previous $21,000 fee covered only a fraction of the town's costs. The new $35,000 rate is intended to better align the fee with actual construction costs while still remaining below the full replacement value.

The policy also moves the parking cash-in-lieu rate into the Fees and Charges Bylaw, allowing council to review it annually and adjust it based on changes in commercial construction costs rather than leaving it unchanged for decades.

In addition to increasing the parking cash-in-lieu rate, the amended Fees and Charges Bylaw includes changes to parking penalties, business licence fees and several bylaw fines, including higher penalties for wildfire-related offences.