Development Agreements
Large development areas normally undertaken by private developers require a Development Agreement (DA) between The City and the developer. A DA is a legal contract for all residential, industrial and commercial developments. It sets out the terms and conditions under which development of the lands are to take place within the city, including the responsibility to construct public facilities and associated financial obligations.
Development Agreements components
Below, you will find milestones related to your Development Agreement, providing transparency about how your Development Agreement flows from start to finish.
Special clauses and Development Agreement
When it is determined through your SB and/or DP application conditions that a Development Agreement is required, the following information will help you provide the appropriate guidance to ensure timely and accurate submissions and review of your Development Agreement.
- 2024 Development Agreement requirements 2016 offsite levy bylaw
- 2024 Development Agreement standard terms and conditions
- 2023 Development Agreement requirements
- Development Agreement application process
- Certificates of insurance requirements
- Letter of credit requirements
- Development Agreement surety bond form
- Digital signing of Development Agreements - DocuSign
Construction permissions
After the Development Agreement number has been assigned and construction permissions can be requested, please see construction drawings for more information and instructions.
Construction Certificates (CCC/FAC)
When the construction (maintenance) and the mutual inspection of an infrastructure component is completed, the consultant can submit the CCC (FAC) following the instructions in the documents below.
CCC-FAC tracking tool
Calgary Approvals Coordination Completion Certificate and Final Acceptance Certificate (CCC-FAC) tracking system is accessed through a password-protected account and accounts are restricted to authorized developers and their consultants.
For further information or to request an account, please contact VISTA Administration at Admin.Vista@calgary.ca or 403-268-3533.
Requirements and processes related to the Construction Completion Certificate (CCC) and Final Acceptance Certificate (FAC) are outlined in detail with the Consulting Engineer's Field Services guidelines.
Continue to check for updates and new online releases slated for the future.
Oversize and boundary claims
Tied to the approval of CCC/FAC's the oversize and boundary claims may be submitted. Refer to the material below on how to make a claim. In addition to this information, an approval letter will be sent with instructions on how to submit your invoice.
Building permits
Building permits can be requested when the Development Agreement number has been assigned and the clearance requirements have been met.
Submit your building permit request with a completed building permit release checklist:
Performance Security Reduction (PSR)
Timing of the security reduction (at each CCC) and securing the off-site obligations, outstanding levies and any deposit repayments (Commercial and Industrial Development Agreements) to be made the City.
Construction drawings as-builts
To submit your construction drawings as-builts, follow the instructions on construction drawings - development engineering.
For information regarding pond submission and approval process.
As of June 2020 there are changes to sewer as-built reviews.
For more information please see the bulletin for Revision to sewer as-built submission and approvals process.
For more information see: Frequently asked questions – asbuilt reviews.
As-built drawings are reviewed in the order they are received.
Prior to June 1, 2020
After June 1, 2020
Close file
The three components that tend to hold up the closeout of the Development Agreement:
- As-builts typically a 2 year process – As-builts are to be submitted after all infrastructure components have been CCC’d.
- Undeveloped lots – as your agreement is drawing to an end consider reaching out to your roads inspector to discuss the feasibility of a lot buyout.
- Outstanding oversize claims – ensure that your claims are submitted after CCC of the specific infrastructure component.
Performance security will be returned to the bank, with a CCC to developer and consultant once all obligations under the Development Agreement have been met. This performance security reduction may be initiated by the infrastructure strategist on file on behalf of the developer.
Tiering and securities
The City’s Planning and Development department uses a tiering and securities framework to rank developers into tiers that determine the securities amount required before construction begins.
The tiering system was put in place following a risk managed approach to support new investment opportunities through easing security requirements for developers who meet their performance requirements.
Tiering and Securities criteria
The revisions provide a risk-managed approach to supporting new investment opportunities through easing securities requirements for developers who meet their performance requirements.
The following criteria are to be met for all Development Agreements (DA).
| % of Construction costs in UDO | Determining criteria | |
|---|---|---|
| A | % of Construction costs in UDO: 8% | Determining criteria:
|
| B | % of Construction costs in UDO: 8% | Determining criteria:
|
|
||
| C | % of Construction costs in UDO: 25% | Determining criteria:
|
| D | % of Construction costs in UDO: 65% | Determining criteria:
|
| E | % of Construction costs in UDO: TBD (CAC discretion on a per case basis) | Determining criteria:
|
Security calculation based on construction costs (now applied to all tiers)
- Minimum security $150,000
- Letter of Credit and Performance Bonds continue to be accepted
Performance Security Reduction (PSR)
- Security reduction can occur after the first CCC for all tiers. Will not reduce beyond outstanding Obligations and Levies
- Exception to this rule is construction of off-site infrastructure. Security will be reduced upon issuance of each CCC to $0.00
File management
- All DAs currently in-progress will not be affected by the updated tiering system
- A single "Developer of Record" is still required
New tiers
- Additional tiers will allow for easier movement between tiers
- Lower number of DAs required to move up a tier
Recognition of experience
- Developers new to Calgary (vs. new developers) will be able to enter the system at an appropriate tier rather than at the entry level
Developer activity
- Developers must stay active to retain their tier
- 5 year window, reflecting:
- track record of an organization
- consistency of ownership
- team membership
- current development experience
- 5 year window, reflecting:
Downward movement based on negative performance
Re-categorized downward for repeated Minor breaches of a Development Agreement or a Major breach (CCCs/FACs requirements)
| Minor performance issues | Major performance issues |
|---|---|
| Minor performance issues: Failure to meet requirements on:
|
Major performance issues: Failure to meet requirements on -
|
All developers will be evaluated against the updated tiering criteria as they enter into new DAs
Tier 3 developers will not automatically be placed in Tier A or B (existing track record will be taken into consideration)
Minimum performance security requirements (remains the same) $150,000, in addition to all other amounts payable to The City
The Tiering and Securities recommendations are outlined in detail in the Development Agreement terms and conditions.
Performance security types, requirements and timing
The performance security (letter of credit/bond) has to be submitted and accepted by the City before the digital signing (DocuSign) of the Development Agreement.
The City only accepts two (2) forms of security.
- Digital letter of credit
- Surety bonds
Security reduction
Timing of the security reduction (at each CCC) and securing the off-site obligations, outstanding levies and any deposit repayments (Commercial and Industrial Development Agreements) to be made the City.
Security release
Timing of the security release is when all FAC’s, as-builts, financial recoveries and obligations have been met and all lots are free of builder damage.
Then, the agreement is closed and the developer is free of all obligations related to that agreement.
Tiering and Securities FAQ
What is the Tiering and Securities framework?
The City of Calgary uses a tiering system to rank a developer’s potential performance in meeting construction project agreements and requirements. This ranking then determines the amount of performance securities a developer must post before construction begins. This process is known as Tiering and Securities (T&S) and forms part of The City’s Development Agreement which is updated annually.
Why did The City implement changes to the Tiering and Securities process?
The City wished to ensure a business-friendly environment for developers by addressing barriers to market entry. To help achieve this goal, The City revamped the T&S structure. The changes streamlined the process, eased securities requirements and provide incentive to developers for investing in projects such as homes, businesses, institutions and amenities that make Calgary a great place to live.
When did changes come into effect and where can I view the details?
In January 2020, The City and BILD agreed in principle to recommendations. An endorsement letter outlining industry’s support was signed and final changes endorsed in February.
What is the revised Tier structure?
The former numbered, three-tiered system (1, 2 or 3) has been updated to a lettered, five-tier (A, B, C, D, E) system. Security requirements have been reduced and the Framework revisions allow for quicker upward movement through the system. The revisions provide more financial flexibility to developers.
Tier placement considers track records of each developer, use of critical infrastructure (example: sidewalks, erosion control, water mains, storm ponds etc.), as well as market and economic condition changes.
A translation table has been created between the old system and the new. As is our normal practice, City staff from Calgary Approvals Coordination will reach out to individual developers and discuss tiering levels.
How do changes affect developers new to the Calgary market?
New developers’ ranking in T&S will fall into Tier D, with security set at 65 per cent of estimated construction costs as opposed to the former 100 per cent of estimated construction costs.
What if a developer feels that their assigned tier is not reflective of risk level?
As is our standard practice, staff from Calgary Approvals Coordination will meet with a developer to review security calculations, recognition of experience, track records and references as well as other determining factors.
How will you ensure continuous improvement in the T&S process?
Understanding trends and supporting the industry is a key goal for Planning and Development. The City is continuously looking at ways to improve services for customers and to this end, considers valuable feedback that helps build a more vibrant city.
Ways we will continuously improve T&S include:
- Better metrics
- Explore further incentives for good performance
- Continuous performance monitoring
- Regular T&S health checks
- Annual development agreement reviews and updates
- Continued engagement and relationship building
What factors affect securities requirements?
- Security is calculated as a percentage of construction costs.
- Key performance indicators affect tier placement, providing incentive for good performance.
- A developer will move upward when criteria of previous tiers have been met.
- More precise definitions of minor and major performance criteria.
- Use of critical infrastructure anchors the calculation for entry level tier security and allows for high tiers to be lowered comparatively.
General information
Historical Development Agreements
Master Development Agreements / terms and conditions
- 2022 Development Agreement standard terms and conditions
- 2021 Development Agreement standard terms and conditions
- 2020 Development Agreeement standard terms and conditions
- 2019 Master Development Agreement
- 2018 Master Development Agreement
- 2017 Master Development Agreement
- 2016 Master Development Agreement
- 2015 Master Development Agreement
- 2014 Residential master Development Agreement
- 2014 Commercial master Development Agreement
- 2014 Industrial master Development Agreement
- 2013 Residential master Development Agreement
- 2013 Commercial master Development Agreement
- 2013 Industrial master Development Agreement
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Need help?
If you have questions about the process of entering into a Development Agreement or your existing file, please contact your strategist.