Growth-fee challenge now expected in early 2017

The legal challenge against Winnipeg's growth fees is now expected to be launched early in the new year.

Mike Moore of the Manitoba Home Builders Association said Monday that a challenge of the city's new growth-fee legislation will be filed before the Court of Queen's Bench in early January.

In October, council voted in favour of a plan to begin charging "impact fees" of roughly $500 for every 100 square feet of new residential development in selected areas at the fringes of the city, beginning on May 1.

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The city plans to expand the fees to commercial, industrial, office and institutional developments within two years and then apply them to the city as a whole within three years. The council vote was met with a promise of a legal challenge.

Speaking at city hall, Moore said the City of Winnipeg Charter does not grant Winnipeg the powers to collect the new fees. The city maintains the opposite view, but did not obtain an external legal opinion before council approved the fees.

He said he expects the legal challenge to take anywhere from three months to a year, but doesn't place much stock in St. Vital Coun. Brian Mayes' speculation it could go all the way to the Supreme Court of Canada.

The city only expects to collect $1 million in growth-fee revenue in 2017. Moore told council's property committee Monday that he expects that new revenue to be offset by a $3-million drop in permit revenue resulting from a development slowdown.

City planning, property and development director John Kiernan said he does not expect that to be the case, given that  a rush on permit applications is expected before May 1, when growth fees will kick in.