Confusion over legality of fee

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This article was published 02/09/2016 (3358 days ago), so information in it may no longer be current.

THE consultant’s report recommending new development charges skirted the issue of whether Winnipeg city council has the authority to impose those charges.

Councillors said Hemson Consulting told them during Thursday’s closed-door briefing it wouldn’t offer a legal opinion.

Hemson told Winnipeg it needs new development fees and what those fees should be, but it was silent about how it can impose those fees within the regulatory framework of the City of Winnipeg Charter, which sets out city powers.

However, in a similar study Hemson did for Saskatoon in 2015, where it reviewed the legislative powers that governed several municipalities, it clearly stated Winnipeg didn’t have the authority to impose development charges.

“Winnipeg is bound by the Winnipeg Charter, which restricts development fees only to the immediate infrastructure — roads, sewers, sidewalks, drainage, intersection improvements — directly connected to a new development,” the 2015 study states.

Mayor Brian Bowman told reporters civic staff advised him the city does have that power and will be presenting a report outlining its position.

However, the same city officials three years ago said the city didn’t have the ability to impose new development charges and would need legislative changes to do it.

The former NDP government said it would not make any changes to the Winnipeg Charter that would result in new fees; and the new Pallister government has taken the same position.

However, city officials appear to be designing their justification on a very narrow legal interpretation. Coun. Brian Mayes, like Bowman a former practising lawyer, said the charter prevents city hall from enacting new development “charges” but said the administration will argue it can impose new development “fees.”

The development industry is eagerly waiting for that administrative report. It had legal counsel attend a briefing by Hemson two weeks ago. Mike Moore, president of the Manitoba Home Builders Association, said he doesn’t believe the city has the ability to impose new fees and said its legal team will analyze the administration’s position.

aldo.santin@freepress.mb.ca