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New report recommends thousands of dollars in growth fees

Thousands of dollars in new growth fees are being recommended in a new report. Global News

WINNIPEG – City councilors are combing through a massive report that recommends Winnipeg implement growth fees on new development.

Those new fees could mean an additional charge of $18,302 on an 1800 square foot home.

The 127-page report suggest regulatory fees could fund capital projects throughout Winnipeg so that “new development pays for new development.”

Manitoba Home Builders Association president Mike Moore said potential new homeowners should be worried.

“It doesn’t matter if it’s $1,000 or $18,000, if it’s a badly constructed fee, it’s just another tax,” Moore said.

He’s heard from dozens of developers who are worried the fees, if implemented, will impact business.

“The fear is they may be done building in the city of Winnipeg and then what does the city do with that tremendous loss of revenue,” Moore said.

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Hemson Consulting Ltd was hired to make recommendation on how those fees could work.

It’s calculated the cost of growth under several categories, parks, waste, transit, fire and paramedic services, police and water.

Suggested fees range depending on the type of development.

The report recommends regulatory fees of $109.45 per square meter of residential space (approximately $10 per square foot), $226.51 per square meter for office space (approximately $22 per square foot) , $152.91 per square meter for commercial space (approximately $15 per square foot) and, $61.16 per square meter for industrial (approximately $6 per square foot)

The report appears to leave the door open on where and how those fees would be applied.

It’s also recommended the calculated charges are the maximum charges the city may adopt: “Lower charges may be approved; however, this will require a reduction in the capital plan, or financing from other sources, likely property taxes and utility rates.”

The mayor is scheduled to respond the report and how it might be implemented Thursday morning.

Global News will update the story with further details when available.

 

 

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