The city will have to hand over the roughly $30 million collected over the past three years.

“We now have a judicial decision which confirms that imposing an impact fee is lawful and in fact growth in the city is not paying for growth."

It's been an ongoing battle between Winnipeg city council and developers but the new — and controversial — impact fee officially kicked in Monday.

Key players in Manitoba's home building industry have launched a legal challenge against Winnipeg’s growth fees.

The city's Executive Policy Committee is set to vote on a revamped growth fees plan.