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Manitoba

Tension builds among developers over soon-to-be released Winnipeg growth-fee report

City hall is bracing for the release of a development-fee report that is already causing tension between Winnipeg's mayor and its home-building industry.

Study expected to recommend $30K worth of new fees to arrive at city hall on Aug. 31

A study recommend ways Winnipeg could recoup the cost of new developments is due to be complete on Wednesday. (CBC)

City hall is bracing for the release of a development-fee reportthat isalready causing tension between Winnipeg's mayor andits home-building industry.

On Wednesday, consulting firm Hemson is slated to hand over the final version of a document called the Financing Growth Study, which will recommend ways Winnipegcan recover the cost of servicing new developments at the fringes of the city.

Mayor Brian Bowman has repeatedly said the money currently spent on infrastructure by private developers does not cover the full cost of building roads, water and sewer lines, recreational facilities and other amenities at the edge of the city. City council ordered up the Hemson study, at a cost of $250,000, in order to figure out ways to recover those costs.

In a presentation Aug. 18, Hemson told Winnipeg home buildersabout a range of proposed development fees that would add $30,272 to the cost of the averageresidential home in Winnipeg.

Mike Moore, president of the Manitoba Home Builders Association, said he does not expect significant changes to be made in the final version of Hemson'sreport.

He said earlier concerns raised about the methodology employed by the consultant were not addressed following a July presentationand he is "not holding out a lot of optimism they will be addressed" this time.

"They need to know more about Winnipeg, more about how Winnipeg operates and use the numbers we think are more accurate," Moore said in a telephone interview.

"My fear isit would bring new home construction within the City ofWinnipeg to a halt, enhance new home growth outsideof the City ofWinnipeg, whereas all these individualswill still use Winnipeg's infrastructure, causing more wear and tear on our roads and services."

Last week, Qualico vice president Eric Vogan urged Bowman to slow down the process. Moore added Monday that there has been no dialogue between the mayor's office and developers.

Moore said Winnipeg's home builders have a very good relationship with the city's planning property and development department, "however this study is being led by the finance department."

In anticipation of the final version of theHemson study, all members of city council have been invited to a closed-door council seminar on Thursday morning, said Jonathan Hildebrand, a spokesman for Mayor Brian Bowman.

The report will be posted on the city's website immediately afterward.

"Instead of them keeping this confidential, the decision has been made to make it public," saidHildebrand, acknowledging some elected officialsmay not be able to attend because this is the final week of city council's summer prorogation.