WINNIPEG — New home buyers and developers will be watching city hall closely over the next 48 hours. A report on the viability of growth fees is expected to be released on Thursday; a move that could cost new homeowners tens of thousands of dollars more.
Mayor Brian Bowman has said continuous growth in new subdivisions is unsustainable without additional revenue. City council ordered a $250,000 study, which is covered by the 2016 budget, to look into how to cover the full cost to building and maintaining roads, recreational centres and amenities in new neighbourhoods.
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“The question is – who’s going to pay for that growth? Is it those who are responsible for the growth? Or is it all of us, all current homeowners and taxpayers?” said Bowman.
Residential growth fees have been offered as a solution to cover the costs. Consultants hired for the study detailed in a presentation that proposed development fees would add over $30,000 to the cost of a new, average residential home in Winnipeg.
While the final numbers and findings have yet to be presented to city council, home developers are taking issue with possible growth fees as well as the consultation process.
Eric Vogan, Vice President of Community Development of Qualico Communities said growth fees, if not implemented properly, would have long-term ramifications on city planning.
“We’re disturbed by the lack of consultation,” Vogan said. He also expressed that while other major Canadian cities have growth fees, the city of Winnipeg is tackling the issue too quickly.
“We’re very concerned about the speed of the process. Because we know the city does not have good plans behind the work they’re they’re describing.”
City councilors, such as Ross Eadie argued growth fees are necessary especially in a city where a multi-billion infrastructure deficit.
Bowman has said no final decisions will be made until the final results of the report have been released.