Tension builds among developers over soon-to-be released Winnipeg growth-fee report
Study expected to recommend $30K worth of new fees to arrive at city hall on Aug. 31
City hall is bracing for the release of a development-fee report that is already causing tension between Winnipeg's mayor and its home-building industry.
On Wednesday, consulting firm Hemson is slated to hand over the final version of a document called the Financing Growth Study, which will recommend ways Winnipeg can recover the cost of servicing new developments at the fringes of the city.
Mayor Brian Bowman has repeatedly said the money currently spent on infrastructure by private developers does not cover the full cost of building roads, water and sewer lines, recreational facilities and other amenities at the edge of the city. City council ordered up the Hemson study, at a cost of $250,000, in order to figure out ways to recover those costs.
In a presentation Aug. 18, Hemson told Winnipeg home builders about a range of proposed development fees that would add $30,272 to the cost of the average residential home in Winnipeg.
Mike Moore, president of the Manitoba Home Builders Association, said he does not expect significant changes to be made in the final version of Hemson's report.
He said earlier concerns raised about the methodology employed by the consultant were not addressed following a July presentation and he is "not holding out a lot of optimism they will be addressed" this time.
"They need to know more about Winnipeg, more about how Winnipeg operates and use the numbers we think are more accurate," Moore said in a telephone interview.
"My fear is it would bring new home construction within the City of Winnipeg to a halt, enhance new home growth outside of the City of Winnipeg, whereas all these individuals will still use Winnipeg's infrastructure, causing more wear and tear on our roads and services."
Last week, Qualico vice president Eric Vogan urged Bowman to slow down the process. Moore added Monday that there has been no dialogue between the mayor's office and developers.
Moore said Winnipeg's home builders have a very good relationship with the city's planning property and development department, "however this study is being led by the finance department."
In anticipation of the final version of the Hemson study, all members of city council have been invited to a closed-door council seminar on Thursday morning, said Jonathan Hildebrand, a spokesman for Mayor Brian Bowman.
The report will be posted on the city's website immediately afterward.
"Instead of them keeping this confidential, the decision has been made to make it public," said Hildebrand, acknowledging some elected officials may not be able to attend because this is the final week of city council's summer prorogation.
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