Developers push cost-sharing

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This article was published 11/10/2016 (3034 days ago), so information in it may no longer be current.

Developers pitched a plan to city councillors Tuesday to explore alternatives to proposed growth fees they say would jack up the cost of new homes and commercial buildings.

The Manitoba Home Builders’ Association and the Urban Development Institute held a workshop attended by several councillors, but not two key people — Mayor Brian Bowman and Coun. John Orlikow.

Orlikow, chairman of the property and planning committee, is in the midst of consulting with developers to come up with a compromise to the fees.

A copy of the presentation given to councillors suggests a “reasonable cost-sharing model” between developers and the city could be in place within a year.

Eric Vogan, land development manager for Qualico and president of the Urban Development Institute, said the answer to the city’s cash crunch is not fees on new developments.

“I think a lot can be accomplished in a year. I think the most desirable outcome for the whole city is getting a process that will allow us to grow well,” Vogan said after the meeting.

“I am hesitant to use the term ‘growth fee’ because it is a structure based on a fee with a plan later. I think I want to talk about cost-sharing mechanisms based on good planning.”

Orkilow is expected to finish consultations this week and will meet with Vogan and Mike Moore of the home builders’ association next week.

The developers’ alternative approach includes a plan to ensure taxpayers are not burdened with the impact of fees and an assurance a technical analysis will be done to determine the demand and effect of new growth.

This can be done by establishing working groups, determining where growth is occurring, assessing the city’s capacity and using the information to calculate a cost-sharing model, the presentation states.

The mayor and developers have been at odds over growth fees for months.

A report prepared for the city by Hemson Consulting suggested new developments don’t pay for all the city services they get.

Bowman has repeatedly said taxpayers cannot afford to cover the costs new developments place on city services.

Developers insist they pay for infrastructure in new subdivisions, including roads, curbs, gutters and the sewer system.

Plans to have the fees in place by January were put on hold at the end of September after pushback from developers.

Orlikow said Tuesday he has met with about 40 groups and is close to finishing his consultation process.

“This is their right. They can do this,” Orlikow said when asked about the developers’ meeting, but was quick to note councillors have the final say.

“This will be a city-led plan, this will not be a developer-led plan. They can have their opinions, and we will listen to them… but then it will be up to council to decide.”

The Hemson report proposed a range of fees for new residential and non-residential development. The report proposed an $18,000 fee be applied to a new 1,800-square-foot home.

Similar charges would apply to townhouses, apartments, condominiums as well as new non-residential development, including office space, retail, industrial and institutional construction.

Couns. Russ Wyatt and Janice Lukes, who is the public works committee chairwoman, said the meeting showed the business community’s willingness to compromise on how development can begin paying for growth-related infrastructure costs.

Lukes said there still time for council and developers to reach an agreement.

She said she agrees with developers an “in-depth analysis” on where and how the city is growing is still required before the city moves forward.

“This is a major, major public policy decision that we are going to be making,” Lukes said.

“There is a lot of information the city has already… I see nothing wrong with sitting down and taking some time to work through it.”

Lukes said the uncertainty over implementing growth fees could hurt development in the city — scaring away potential new investments.

“I am speaking to developers in Toronto, Mississauga, Vancouver… who are saying, ‘Hey, we don’t know what is going on there (in Winnipeg), so we aren’t going to do anything until you figure it out,’” she said.

“Developers are holding off, they are not building, and when they are not building that means they are not hiring construction workers… and that could lead to layoffs.”

Couns. Shawn Dobson, Scott Gillingham, Brian Mayes and Ross Eadie and Coun. Matt Allard’s executive assistant also attended Tuesday’s meeting.

— with files from Aldo Santin

kristin.annable@freepress.mb.ca