Rising sewage capacity issues threaten to swamp city-approved developments

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This article was published 14/07/2023 (1102 days ago), so information in it may no longer be current.

About three years after the City of Winnipeg approved a proposed 22-unit apartment complex for Pembina Highway, a lack of sewage capacity in the area is blocking progress, its builder says.

Others say the issue is becoming increasingly more common.

In April 2019, the Riel Community Committee approved a plan to add a three-storey mixed-used building, with a commercial space on its main floor, at 3555 Pembina Hwy.

In late 2022, the owner was informed sewage capacity is exhausted in the area, so major upgrades would be needed for it to proceed, said Nic Thiessen, president of Three Way Builders.

“There’s always an option from the city to pay to upgrade all of the city’s infrastructure at your own expense. It just isn’t economically feasible,” said Thiessen, noting a rough estimate predicted that work could cost around $3 million.

“It could (almost double) the cost (of the project)… It doesn’t work if we had to bear that ourselves, 100 per cent.”

The builder said the land was purchased with the expectation it could host a multi-family development, yet the city determined years later sewage capacity isn’t available to support such new construction.

“If you can’t even have assurance that in the time it takes you to do your drawings and your due diligence that your sewer capacity will be there, how do you develop?” Thiessen said, adding proponents now feel “stuck” with the land, since it could be difficult to sell due to the capacity concerns.

Coun. Markus Chambers (St. Norbert-Seine River) said at least four projects planned along Pembina Highway and approved by council, one of its committees or a city official, are now at risk of being cancelled or facing large new bills for sewage work.

“All of these developers now have been told that there’s no sewer capacity at all. If they were to build (without expanding capacity), basements in the St. Norbert area would be flooded,” said Chambers.

He believes the city should find a way to lessen the financial hit, such as sharing in sewage upgrade costs or offering a tax break to developers who pay for the work.

Chambers argues it would benefit Winnipeg in the long run. “Ultimately, the city is going to get new taxes and they’re going to have a brand-new piece of infrastructure in the ground.”

Last year, the councillor raised a successful motion to have city staff report on a potential tax break to reimburse developers whose projects could otherwise be scaled back or stalled due to limited sewage capacity. At the time, he suggested the city could waive a portion of annual property taxes over a 10-year period.

That report has not yet been released.

Coun. Brian Mayes, chairman of the water and waste committee, said the lack of sewage capacity is raised frequently at city hall, and affects several Winnipeg neighbourhoods.

“It’s a problem that’s really come in (during) the last 10 years or so.”

He said a recent goal to add more dense residential structures to existing neighbourhoods can sometimes clash with original designs for those areas, which were often completed decades earlier.

In some, sewage systems were prepared largely to handle single-family homes, said Mayes (St. Vital).

While he’s not sure developments would generate enough tax revenue to compensate the city for covering the price to expand sewage capacity, Mayes said he would like the city to better map out where sewage capacity is available — to help developers better select properties for their plans.

A request to interview a Winnipeg water and waste official was not granted Friday.

In an email, spokeswoman Lisa Marquardson noted local sewers (pipes that connect to properties) are maintained by the city, but property owners are responsible for any “upsizing” needed to intensify the system beyond its original design.

“The city does not reserve sewer capacity, so if new information comes to light or other development consumes capacity, then future developers may have to do additional works to accommodate intensification. This is to protect Winnipeggers from basement flooding and sewer overflows.”

Marquardson said building plans are not considered to have final approval until a permit is issued.

In May, the city awarded a contract to review its municipal water and sewer servicing, which will assess the development application process and communication about sewer constraints. The city expects that work will be completed by summer 2024.

joyanne.pursaga@freepress.mb.ca

Twitter: @joyanne_pursaga