Municipalities 'get freedom to be creative' in attracting jobs, development

Mayors and municipal councils will soon get the power to hand out job-creation grants and incentive packages to private companies.

But at least for now, the public won't have any way of finding out if those same companies gave campaign donations to the municipal politicians doing the handing out.

Two new bills introduced Wednesday by the Gallant government would modernize the ways cities, towns, villages and rural communities operate.

The new Local Governance Act and Community Planning Act would replace the Municipalities Act and give local governments "broad powers for a wide range of matters within local jurisdiction," said Environment and Local Government Minister Serge Rousselle.

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That includes the power to offer economic development incentives to businesses, including direct grants and the sale of land at discount prices.

Municipal leaders happy

Miramichi Mayor Adam Lordon said his council and staff have been holding brainstorming meetings on how to attract businesses to the city but "every time we would throw something out, staff would say, 'You can't do that' because of the provincial legislation.

"So the leeway and freedom to get creative in incentive packages to create economic growth is something we're the most excited about."

But the legislation doesn't include any mechanism that would allow the public to know if the companies receiving incentives wrote cheques to the campaigns of the politicians providing the funds.

"That's not part of this legislation," Rousselle said. "That's other legislation."

He added he had "no comment" on when the province may require disclosure of municipal campaign donations.

"That is not on the plate today. It will be in the future."

At the provincial government level, political parties, riding associations, party leadership candidates and candidates for riding nominations must disclose who donates to their campaign.

Last year Brian Hicks, then a Moncton city councillor, called for a provincial law that would impose similar rules on municipal election candidates. Municipal campaign rules are set by the province and enforced by Elections New Brunswick.

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Rousselle insisted Wednesday his bill does create "transparency towards the population of the local government in question" by requiring the municipalities to issue annual reports about their economic development activities.

But those reports won't contain information on campaign donations.

The 2014 Liberal election platform committed the Gallant government to "exploring appropriate limits and public disclosure of spending and donations for municipal elections," but there's been no legislation so far.

The power to give job-creation incentives is just one of several measures in the two bills introduced Wednesday.

More bylaw leeway

Municipalities would also get more leeway in passing bylaws.

In Moncton, city council investigated last year how to regulate companies that "boot" illegally parked cars in private lots but learned it lacked the legal power to act.

Mayor Dawn Arnold said Wednesday that the Local Governance Act will change that.

"It would give you the ability to enforce laws to not permit stuff like that, or pesticide use, or idling," Arnold said. "It goes on and on."

The new Community Planning Act would give local governments more flexibility to deal with zoning and other planning rules, including the power to levy development charges.

Options for developers

A developer building a new subdivision, for example, could be required to pay part of the cost of extending municipal water and sewage systems into the subdivision.

"So now with developers, we can work out deals with them, and possibly put some charges in where it's warranted," said Doaktown Mayor Bev Gaston, president of the Union of New Brunswick Municipalities. "It's been long overdue. I think it'll help large and small municipalities."

It's been long overdue. I think it'll help large and small municipalities.- Bev Gaston, Doaktown mayor

The planning bill would also give a municipality the power to approve "bonus zoning" by letting a developer build outside existing zoning rules in exchange for adding features that benefit the community.

An apartment developer could build a larger building in return for creating a park or trail for the public, or for building social housing.

Progressive Conservative MLA Bruce Fitch said the new rules would give an advantage to larger municipalities that have the means to pay for job-creation incentives.

That would likely encourage smaller communities to look at amalgamating so they can afford the same kinds of incentives.

But Rousselle said the new bills aren't designed to nudge communities to amalgamate, and he said some of the incentives that will be allowed, such as discounted land, don't depend on the size of a municipality.