Encyclopedia
Land lift
The increase in land value from a rezoning or plan change.
For example: A city policy may expect a share of land lift to go to amenities. (Illustration only, not a real deal.)
Official source: Amenity cost charges (Government of BC)
Example only, not a real client. Say a city rezones land for more density. The land’s value rises. The city may seek part of that lift through community contributions as part of the approval.
What I’d tell a friend
Understand what the city may ask for in return before you pay for rezoning potential.
Why it matters to you
When a rezoning adds density, the city often asks for part of that extra value through amenity contributions or charges. That reduces what a developer can pay for the land, which matters to sellers pricing a site with rezoning potential.
How to use it in your deal
Owners considering a rezoning should ask the planning department early what contributions and charges apply, and get a land economist or appraiser to estimate value before and after. Buyers of sites with rezoning potential should price in those costs, the time to approval and the risk of refusal; don't pay the seller for lift you'll hand to the city.
Tenants in buildings with rezoning potential should expect demolition clauses. Lift is only real once rezoning is approved, so pay for it only when it's in hand or in a clear structure like a subject or earn-out.
Mistakes I see
Paying full post-rezoning value for land that isn't rezoned yet. Forgetting development cost charges on top of amenity contributions. Assuming policy stays the same through a long approval.
In BC and Vancouver
Cities set amenity policies. The Local Government Act now allows amenity cost charges, and the Vancouver Charter has similar tools. Broadway Plan documents describe local expectations.
Official sources: Amenity cost charges (Government of BC) · Development cost charges (Government of BC) · Local Government Act (BC Laws) · Broadway Plan (City of Vancouver)
What it means
Land lift is the increase in land value from rezoning or other approvals.
Some municipalities seek community amenity contributions based on it.
What to check
Ask the city about its policies on contributions.
Factor them into your land price and project budget, along with time for approval. I can help you compare sites with these costs in mind.
Been given a hopeful rezone number? See what you can actually do with your lot.
Questions to ask before you sign
- What contributions and charges apply?
- How long would a rezoning take?
- What's the value before and after?
- What if the rezoning fails?
Keep reading
Related terms: Density: floor space ratio (FSR) / floor area ratio (FAR), Amenity Cost Charge (ACC)
Working through this right now? Questions are free. Book a 15-minute call or call or text 604 256 2002, and I’ll give you a straight answer.
Back to the A–Z index · common questions · tactics to watch for · the shorter glossary
General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.