Winnipeg development industry files growth fee court challenge
Published Tuesday, January 24, 2017 11:10AM CST
Last Updated Tuesday, January 24, 2017 7:08PM CST
Winnipeg’s development industry is following through with a court challenge to Mayor Brian Bowman’s growth fees.
Developers and home builders filed the legal challenge Tuesday.
The court application asked a judge to rule the growth fee bylaw invalid on the grounds the city does not have the authority to collect the fee under the City of Winnipeg charter.
It also said the new charge is an indirect tax on homebuyers.
“The fee this bylaw will impose on new home buyers will be detrimental to Winnipeg taxpayers, tradespeople and the entire construction industry. A fair legal review of the bylaw is necessary to ensure jobs are sustained and Winnipeg homeowners are not subject to an indirect and illegal tax from the city,” said Mike Moore with the Manitoba Homebuilders Association.
The charges will see an extra $9,000 added to the cost of an 1,800 square foot home in newer neigbourhoods to pay for related infrastructure.
Mayor Bowman has said the fee is not a tax and is necessary to pay for roads, bridges and other services connected to sprawling suburbs.
Growth fees, also called impact fees, will be collected as of May 1, but there will be a six-month grace period for those who get their building permits in before the deadline.