Civic officials concerned about ‘veto’ in Municipal Board decision on city-owned, Granite-leased parking lot

The Manitoba Municipal Board’s decision on a hotly debated plan to build affordable homes at a Granite Curling Club parking lot is triggering fears it could set a dangerous precedent for city projects and leases.

The provincially appointed board’s decision, released last week, adds a condition to the housing plan’s approval. Specifically, it requires the city and the club to develop an “adequate” parking plan “to the satisfaction of the Granite Curling Club,” as well as the city.

The head of city council’s property and development committee said that condition would give the club veto power over the project.

“The Municipal Board has said to the Granite Curling Club, ‘If you don’t like the parking arrangements that are being made, the project’s not moving forward’… I am extremely concerned that this creates a dangerous precedent. I think this is an overstep by the Municipal Board. I think that it has to be reviewed,” said Coun. Evan Duncan (Charleswood-Tuxedo-Westwood).

Council approved the 111-unit residential building proposed for the city-owned land in February, which would ensure half its housing suites have affordable rents for 99 years.

The curling club, which has been at the current location since the building’s construction in 1912, opposed the plan, arguing the location would eliminate 45 of its 80 parking stalls, rendering it no longer viable.

The project was then appealed to the Municipal Board, which held six hearing dates on the matter in the summer.

Since city council is required to follow the board’s recommendation, it raises significant concerns about property rights, said Duncan, noting the city owns the affected land that is leased to the curling club.

It also puts a much-needed housing project at risk, he said.

“We’re talking about… affordable, rent-geared-to-income, (Canada Mortgage and Housing Corp.)-funded, (federal Housing Accelerator)-funded projects that are potentially down the toilet,” said Duncan.

He said it’s possible the city has the power to change conditions of the curling club’s lease during the parking-lot negotiations.

“I think this is an overstep by the Municipal Board. I think that it has to be reviewed.”

“The City of Winnipeg holds that lease. So, the answer is, yes, things can change to motivate people,” said Duncan.

In its ruling, the Municipal Board states it “does not agree that this amendment creates a dangerous precedent that would erode property and ownership rights of developers everywhere and would create veto rights of a lessee.”

“The relationship between the city and the (Granite Curling Club), as stewards of a beloved heritage asset, is unique and the amendment… recognizes this unique relationship,” the document says.

The board’s ruling also “encourages” the city and curling club to discuss a capital fund, annual property tax waiver and eliminating rent for the club as part of a long-term lease agreement.

Mayor Scott Gillingham said he’s still reviewing the ruling to determine his next steps, though he is concerned about its potential impact.

“With this precedent, there’s nothing stopping any future tenant of a City of Winnipeg building from trying to use and cite this ruling as grounds to try to… win their case, as well. So, I think, frankly, it’s naive for the board to say that this may not be precedent setting,” said Gillingham.

“This is overreach. I think they’re out over their skis on this one, as the saying goes, and right now, we need affordable housing built. That site, I still believe, is a really important site that could accommodate much-needed affordable housing.”

A spokesman for the club welcomed the decision, stating such a parking agreement is key to the club’s survival.

“The recommendation that was passed by the Municipal Board provides an assurance that the city has to genuinely work with the Granite to provide a solution,” said Christian Pierce, secretary of the club’s board.

Pierce noted a key city planning document, CentrePlan 2050, calls for any redevelopment of the affected parking lot to support the club’s operations.

He questioned any suggestion the city could alter the club’s lease as negotiations move forward.

“If the implication is the city is just going to not renew our lease or make our lease impractical, I don’t think that would reflect well on the city to take a vindictive approach to us. We’ve been a steward of the building for 112 years,” said Pierce.

“If the implication is the city is just going to not renew our lease or make our lease impractical, I don’t think that would reflect well on the city to take a vindictive approach to us.”

Last year, council called on the provincial government to remove the Municipal Board’s power to have the final word on some city land-use decisions.

Premier Wab Kinew didn’t say Monday whether his government will review the housing project decision.

He stressed municipal councils should have decision-making powers, which is why his government is taking a second look at the broader rules.

“The whole review… it was just designed to make sure that the local officials will be able to make local decisions for your communities, because they know the needs that are out there,” said Kinew.

In an email, Manitoba Municipal Relations Minister Glen Simard noted the province is still reviewing the Municipal Board’s role, noting an “action plan” will be released by the end of the year.

— With files from Carol Sanders

joyanne.pursaga@freepress.mb.ca

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Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

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