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IMPACT FEES

October 26, 2016 - Read the lastest news release:
Development Industry To Seek Clarification From Courts On Impact Fee By-Law

 

The City of Winnipeg is proposing an Impact Fee by-law on new development to fund City infrastructure. Manitoba developers and home builders are very concerned about the proposed Impact Fee that would collect over $1.6 Billion from people investing in new growth. The development industry is asking the City to defer approval of the by-law as currently proposed, and work with stakeholders on a plan-based approach to determine impacts of growth. These plans are also crucial to guide and promote the positive growth desired by the City. The industry's concerns over the current proposed by-law include:

The basis of the fee is flawed.

  • The regional planning necessary to determine the impacts of growth has not been completed.
  • The projects used to calculate the fee have a high degree of uncertainty in both cost and timing, and include projects that have not been approved by council. The projects also include over $1 billion in past projects.
  • There is no supporting analysis of the demand on these projects resulting from new growth.
The impact of the fee is significant.
  • Home buyers may be encouraged to look outside the City for better value.
  • The business case for commercial and multi-family developments may no longer work. Winnipeg will lose this investment to other cities.
  • Individual companies could see significant losses where negotiated leases and purchase agreements cannot absorb a new cost.
Delayed or deterred development will mean:
  • Important new revenue from property taxes on these developments will be delayed or lost. The burden of the City's infrastructure will fall to existing taxpayers.
  • Investment and employment from new development in Winnipeg will be lost.
  • The City will fall even further behind.
Please see the attached report  for more details and background on this important issue.

 

VIEW THE REPORT
Understanding Development in Winnipeg - September 20, 2016

 

We wish to thank the following sponsors of our annual Mix and Mingle held at the Fort Garry Hotel:

 
UDI commissioned Deloitte to review the cost-benefit analysis that is prepared for civic approval of all major new housing development. This review confirms that new housing developments in Winnipeg more than pay for their own infrastructure costs and in fact contribute millions of extra tax revenue dollars to the city for use in providing services in other neighbourhoods. Read the review.

The Urban Development Institute (Manitoba Division) is the voice of the land development industry in the Province of Manitoba. Established in 1962, it was formed to promote:

  • well planned communities by encouraging the reasonable and unselfish use of land for residential, public, commercial and industrial purposes;
  • efficiency and a high standard of ethics among persons, firms and corporations engaged in the business of land assembly and development;
  • pleasant and efficient relationships between persons, firms and corporations and municipal, planning and other governmental authorities and agencies;
  • UDI has chapters located in British Columbia, Alberta, Ontario, Quebec and the Maritimes. The Urban Development Institute (UDI) is a national non-profit association representing the development industry across Canada. Our membership nationwide stands at over 1,000 companies.

 
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