Zoning and development fees will go up on January 1 in Vancouver, boosting city coffers by $1.7 million next year.

Rezoning fees wil rise 30 percent whereas some other development permit fees will rise from 10 to 15 percent.

City council voted for the measure after a staff report indicated that permit fees represent only 0.25 percent of construction costs.

"For example, a typical 6-storey rezoning on Cambie Street could have gross project costs (land purchase and building costs) of about $25 million," the report stated. "The proposed rezoning fee increase represents only a small fraction (i.e., approximately 0.04% or $9,600) of these total costs."

The report noted that when community-amenity contributions are assessed on larger projects, any fee increases will be offset. In effect, CACs will be reduced to make up for the increase in rezoning fees.

"There should be no impact on project viability," it promised. "For rezoning projects with a fixed rate target CAC, the outcome is similar."

Most rezonings involve developers providing the city with CACs. So if the city follows through on its promise to offset higher rezoning fees with smaller CACs, the 30 percent increase will likely have little impact on developers' bottom line.

Council's vote means that the city will generate more revenue when development occurs. This will help offset staff costs associated with processing applications.

But it likely won't result in quite as many goodies, such as childcare spaces or affordable-housing units, that can be traced directly back to rezoning approvals.

In the last election campaign, Mayor Gregor Robertson's party, Vision Vancouver, promised to build 1,000 new childcare spaces and aim for a minimum of 35 pecent family housing in new developments.

Partially as a result of the city demanding community-amenity contributions in rezonings, 900 new child-care spaces were created since 2008.

For example, the rezoning of Oakridge Centre will add 69 childcare spaces. Another 37 childcare spaces are going to be added as result of another rezoning near Cambie Street and Marine Drive.