Mayor gambles on support for fees

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This article was published 16/09/2016 (3060 days ago), so information in it may no longer be current.

Winnipeg Mayor Brian Bowman appears to be banking on popular support for new fees on residential and non-residential development to outweigh attempts from builders, developers and the Manitoba government to scuttle his initiative.

The city released a report Friday that suggests the new fee structure take effect Jan. 1.

The administration’s report estimates the fees would generate $30.4 million from residential development and another $4.4 million from non-residential (commercial, retail, industrial, institutional) development next year.

The speed with which the report was produced left many to suspect the documents had been mostly written, despite assurances given to the development community this week that they would be able to give their input.

Bowman stood outside his office Friday, along with Coun. John Orlikow, to announce the release of the report. He repeated many of the buzzwords and phrases he’s been using since first raising the issue of fees at a business luncheon in February.

“Right now, existing property owners are having to pay all of the infrastructure costs associated with a growing city, and I don’t think it’s fair to expect existing property owners and existing homeowners to pay all of these costs through significant higher property taxes,” he said.

“These costs need to be better shared and better balanced between those driving the need for new or expanding infrastructure and existing property owners.”

Development industry representatives said they are disappointed by the report’s quick release.

“The mayor implied — just three days ago — that we may have an opportunity to provide input to the report,” said Tom Thiessen, executive director of Building Owners and Managers Association of Manitoba, the group that represents developers of all non-residential property.

“Mayor Bowman also agreed that all parties would benefit from not rushing this process, and promised that time would be provided for further consultation with the industry. Having the administration issue a draft report just a few days after our meeting certainly seems to contradict those statements.”

The city report mirrors a report prepared by Hemson Consulting, which was released two weeks ago.

At the time, Bowman said he was directing the administration to prepare a report for council based on the Hemson document, but no one expected the city report to be released so quickly.

If council adopts the city report and approves the bylaw, the fee structure would impose a charge of $10,160 for every 1,000 square feet of residential space and add 10 per cent to the cost of commercial and office projects.

The only exemptions cited in the draft bylaw are for affordable housing and home renovations, although the administrative report suggests council could also exempt government buildings, public schools and universities and colleges.

Bowman said Friday similar fee structures are in place in rural communities surrounding Winnipeg and in most other Canadian cities.

“Existing property taxpayers can’t be expected to shoulder responsibility for rebuilding our city after years of neglect and then also pay all the infrastructure costs of a growing city,” he said.

The development and building industry believes the fees are a form of taxation and would be illegal.

They say new suburbs have generated hundreds of millions of dollars in property tax revenue — enough to pay for their share of infrastructure.

Premier Brian Pallister has said he was opposed to the city imposing a new fee and didn’t believe it had the power to do so.

A spokesman for Municipal Affairs Minister Eileen Clarke said Friday her government remains opposed to the fees and would seek a legal opinion about the city’s right to impose them.

The report is expected to please inner-city councillors and urban planners opposed to uncontrolled suburban sprawl. The prospect of new fees has been criticized by some councillors, including Janice Lukes, a member of Bowman’s executive policy committee.

After the mayor’s news conference, Lukes repeated her claims the process is being rushed. She said she can’t support a start date of Jan. 1.

Coun. Jeff Browaty, another member of EPC, said he has questions about the proposed fee amounts and how they’re applied, but he’s looking forward to hearing from the industry and members of the public.

The administrative report and accompanying draft bylaw will be discussed by EPC Wednesday.

However, Bowman had another surprise Friday when he said even if EPC supports him, the report will not be implemented immediately.

He held out the chance the proposal could be amended.

Bowman didn’t give a preference for an implementation date but made it clear he wouldn’t tolerate unnecessary delay.

“I’m open to anything,” he said. “Let’s have that discussion. Ultimately, council needs to be accountable. We need to make a decision that will move us forward. I don’t think council should debate or delay just for debate or delay. Let’s get on with making decisions.”

The new fee would apply to all areas of the city, including downtown, which the planning department and some others suggested should be exempt or eligible for a discount.

The report recommends that for conversion of existing structures, the fee only be applied to the portion of the project that exceeds the square footage of the original structure or, for residential purposes, only on the number of new units.

The report concludes the city has the legal power to raise the fees, likely setting up a legal fight with the development industry and even the provincial government.

Bowman said the blanket application of the fee structure needs more consideration, explaining he thinks provisions should be provided for infill and downtown redevelopment projects.

“The city has broad authority to impose fees for a variety of purposes, including applications, permits, licences, consents, approvals and other matters in respect of the administration of the (City of Winnipeg Charter) and the affairs of the city,” the administrative report states.

“The charter states that the powers of the city are stated in general terms to give broad authority to council to govern the city in whatever way council considers appropriate within the jurisdiction given to it under the charter or other legislation, and to enhance the ability of council to respond to present and future issues in the city.

“The Winnipeg Public Service has concluded that these and other empowering provisions in the charter grant council the authority it requires to enact the (fee bylaw).”

— with files from Nick Martin

aldo.santin@freepress.mb.ca

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