Developers get ball rolling on Winnipeg growth fee legal challenge

Developers in Winnipeg have followed through on their promise to challenge the city's new growth fees in court.​

The Manitoba Home Builders Association and the Urban Development Institute, both of which represent the development industry, have filed a notice of application before the Manitoba Court of Queen's Bench to review the city's new fees.

Council approved growth fees, which it dubs impact fees, in October. Starting on May 1, they will add about $500 to the cost of 100 square feet of new residential space in selected neighbourhoods at the fringes of the city.

Winnipeg plans to expand the fees to cover other forms of development and other areas of the city over the next two years.

The development industry is asking the court to cancel the fees on the basis the city does not have the legal authority to impose them.

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In the notice of application, the development organizations argue the city charter doesn't give the city any jurisdiction over growth fees and "there is no connection between the amount of fee collected and the cost of administering such purported regulatory scheme."

The first court date is set for Feb. 21, but it may take much of the year to allow affidavits to be filed by both sides in the dispute, said Mike Moore, president of the Manitoba Home Builders Association.

"I wouldn't be surprised if that process itself takes three or four months," he said, declining to predict when a judge may rule on the legality of the city's growth fees.

The city maintains in a report to council that the city charter allows council to enact whatever means it sees fit to create orderly communities, and that includes growth fees.

Mayor Brian Bowman said he wasn't surprised by the legal challenge.

"We're hopeful that the matter can be dealt with and resolved as quickly as possible," the mayor said.

Moore also said the development community has not heard from the city about the planned expansion of the fees since Nov. 8, when property committee chair John Orlikow (River Heights-Fort Garry) was appointed the head of a growth-fee working group.