Agenda Package - City of Vernon

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limitation. Consequently the commercial DCC rate was applied. However,
the DCC top-up covenant was not registered in September 2007 when the
strata plan was registered. Therefore use of the units has been limited to
the 180 day rule except for 23 units which have paid the DCC top-up levy.
The levy has been on average approximately $8,000 per unit'
lf the 3Oo/ol7Oo/o occupancy use ratio and the 180 day occupancy duration
provisions were removed from the Zoning Bylaw, and because there is no
DCC top-up covenant in place for 81 of the Strand units, those units could
be used as permanent residence or for short term rentals without having to
pay the DCC top-up charge. This will likely cause some concern to those
owners who have recently paid the top-up charge and may want a rebate
which is not permitted as the funds are now locked into the various DCC
reserve accounts.
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City taxation is levied on properties based upon the classification assigned by B'C'
Asðessment Authority and the millrate established by the City. With respect to
strata accommodation properties that have been outlined in the above noted
projects at Predator Ridge and in the Okanagan Landing, the B.C. Assessment
Authority has prepared an informative factsheet (see Figure 1). This document
explains how such properties are split-classified (part Class 1 residential and part
Class O business) and therefore the tax levy is composed of residential and
commercial rates. An impodant point noted in the document is that if an owner
fails to provide B.C. Assessment Authority with the required information related to
the usäge of the unit for split classification purpose_s, the Authority will
automatiõally assign the Class 6 business classification. Consequently, the City
will levy the commercial tax rate which is higher than the residential rate.
Other forms of tourist accommodation facilities such as "hotels" and "motels" have
been included in the review of occupancy term provisions. Currently a guest in a
hotel or motel room cannot stay longer than 240 days per year. lf the length of stay
provision in other forms of tourist accommodation such as "apartment housing,
iourist" are going to be deleted and allowed to follow market demands, then such
should be tñe case for "hotels" and "motels". lf the deletion is approved it would
allow the guest suites with kitchens in the Suites at the Sandman lnn for example,
to be useã for longer term rentals that exceed the current maximum 240 day per
year for each guest.
The proposed deletion of the occupancy use ratio and term provisions does not
preclude developers from registering their own management rental agreement
covenant (i.e. similar to that registered by Predator Ridge).
For any residential zoned property where short term rental periods (i.e. less than a
seven day stay) are proposed, then the appropriate OCP designation would have
to be in þlaceand a rezoning to a commercial zone (i.e. RTC, C10) approved.
This would also be the case where the split residential and commercial
classification is assigned by B.C. Assessment Authority. The ALC also allows for
short term stay (i.e. bed and breakfast) facilities on lands in the ALR'
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