Winnipeg homebuyers confused about whether they'll get dinged by growth fees

Confusion over Winnipeg's growth-fee plan has left some homebuyers guessing whether they'll get dinged by the new charge next year.

City council voted 10-6 last week to approve new charges of roughly $500 for every 100 square feet of new residential space. The fees are supposed to kick in on May 1 in selected areas at the fringes of the city.

• Council approves growth fees in the face of legal threats from developers
• Winnipeg's growth fees will 'probably end up at the Supreme Court'

Winnipegger Darcy Hiebert, who's placed a down payment on a 1,200-square-foot home slated to rise in the new Transcona neighbourhood of Crocus Meadows, said he had difficulty determining whether he'll be charged the $6,000 fee on top of the $340,000 purchase price.

For starters, the City of Winnipeg has yet to publish a clear map of the areas that will be affected by the fees. The only map online right now is an annotated black-and-white document embedded in the minutes of the Oct. 26 council meeting.

Hiebert also said if his new home does wind up within the area, he was also unclear whether the charge applies to the project. Construction on his home begins this December but won't be finished until after the fees are supposed to kick in on May 1.

"We're kind of in limbo as to whether the new fee will apply or not," said Hiebert, 33, a first-time homebuyer. "Based on the inclusion criteria, it doesn't seem like it will apply to us, but I want to be sure."

Hiebert said his real estate agent assured him the fee would not apply after he failed to obtain a definitive answer from the city. He said the city has done a poor job of communicating its plans.

South Winnipeg-St. Norbert Coun. Janice Lukes, who was kicked off council's executive policy committee one day after she voted against growth fees, said she has been inundated with similar questions from prospective homebuyers in her ward.

She's organized a February public meeting to help answer questions from residents. She said she's waiting until after the holiday season in order to allow more people to attend what she calls an "impact fees 101" session.

"From the calls I've been getting from my constituents, I don't think the city has been doing a very good job at all.… It's a very complicated, complex matter," she said.

"There's nothing on the city's website. There's no information. People are inquiring about buying a lot.... There are a lot of questions out there."

Lukes said Calgary, which spent three years developing growth fees, has a website that allows residents to enter information about a new project and find out immediately what the fee will be.

Mayor Brian Bowman announced his intention to bring in growth fees in February. The city unveiled its growth-fee plan in September and council approved it in October.

Bowman said it was crucial for council to approve fees in a timely manner in order to provide certainty for the construction and home-building industry. He also dismissed assertions from developers who claimed the city wanted to ensure the fees were in place in time to factor them into the 2017 budget.

The city's spending plan for next year will be unveiled on Nov. 22.