Top planning official raises concerns about development-fee report

Winnipeg's top planning official raised flags about an early version of a development-fee study days before the scheduled release of the final report.

The City of Winnipeg is poised to release a report on Thursday by the consulting firm Hemson, which was asked to figure out whether new developments in the city pay for themselves — and if not, determine how much more developers ought to pay to cover the cost of additional roads, water mains, sewer lines and other forms of infrastructure.

Council approved the study in the wake of Mayor Brian Bowman's contention that new developments on the fringes of the city cost more money than they generate for the city. The mayor claims existing development charges don't cover the true cost of new residential and commercial projects.

In August, Hemson presented some of its findings, including a proposal to add $30,272 worth of new charges to the cost of the average new residential home in Winnipeg.

Manitoba home builders and some city councillors took issue with the consultant's methodology, conclusions and the prospect of paying new fees. Some are also concerned with the speed at which the proposal appears to be moving through the corridors of city hall.

There is also some unease about the report within Winnipeg's public service. On Tuesday, two days before the report was slated to be made public, Winnipeg Planning, Property and Development Director John Kiernan raised several concerns about the draft version in correspondence obtained by CBC Manitoba.

In an email sent to chief financial officer Mike Ruta and nine other senior city officials, Kiernan wrote "the draft report did not adequately respond to the scope of services" the city requested when it issued a search for a consulting firm to look into growth development fees.

Kiernan wrote that the city asked for a new analysis that would determine the costs and revenues related to new developments "in various parts of Winnipeg and by various types of developments." The results of the study were supposed to determine which areas the city should direct growth, Kiernan wrote.

"One of those areas could be affordable housing and we would suggest that the downtown is the other," Kiernan wrote.

Kiernan also suggested the city should not impose charges on all new developments, anywhere in the city, stating that would be inconsistent with city policy.

Instead, he wrote, certain areas of the city — downtown, mixed-use corridors and centres, major redevelopment sites and new communities — should receive special consideration.

"A legislative charge should be designed as a cutting edge (innovative) tool to assist the city in its policy objectives," Kiernan wrote.

Reached by phone on Wednesday, Kiernan declined further comment on the draft version of the report. 

"The final study will stand alone," he said. "What will happen is we'll apply a policy lens to it."

The director's written comments, however, echoed one of the concerns expressed earlier this week by South Winnipeg-St. Norbert Coun. Janice Lukes, who raised the spectre of one-size-fits-all development charges.

"One of the challenges we have in the planning area is we really have to prioritize what parts of the city we want to grow, how and when," Lukes said in an interview. "We currently don't have that."

In a subsequent blog post, Lukes also questioned whether developers have been consulted adequately by the city and whether the city is in a legal position to impose development fees. The Manitoba Home Builders Association has complained they were on the receiving end of two presentations and had little opportunity to provide meaningful input.

Alan Borger, president of residential developer Ladco, said his industry would have been willing to take part in meaningful discussions about new development agreements, had the city chose to pursue that course of action.

Borger said it appears the city merely went to city departments with a funding wish list and then had a consultant apply proportional fees to developments. 

"If you don't have a demonstrable and logical connection between specific infrastructure and the development, then you've got a problem," he said.

Bowman has urged developers to wait for the final report and insisted development fees are not a foregone conclusion.

• Keep calm and wait for the growth-fee report, Bowman urges

The council seminar about the Hemson study is scheduled for 10 a.m. The city is expected to post it on its website after the meeting ends.