Premier Pallister raises red flags over Winnipeg's proposed growth fees

Premier Brian PallisterwarnsWinnipeg may beunaware of the consequences of thegrowth fees Mayor Brian Bowman intendsto begin charging as soon as New Year's Day.

Winnipeg's proposed growth fees will put Manitoba at a competitive disadvantage, the premiersuggested as he advised his municipal counterpart to look within to manage his government's finances.

"Our competitive taxenvironmentmatterswhen it comes toachievingattractivenew investment, whether it's in capital or it's skill development," Pallistertold reporters at the Manitoba Legislature on Tuesday.

City council is considering a plan to institute "impact fees" that would add $18,300 to the cost of a new 1,800-square-foot home on Jan. 1. The proposal is slated to come before council's executive policy committee (EPC) Wednesday morning.

• Growth fees coming to Winnipeg on Jan. 1, pending council approval

• ANALYSIS:For Brian Bowman, it's growth fees or bust

Pallister said those fees would benewtaxes. Heurged Bowmanto find ways to cut Winnipeg's costs instead, noting the province is facing difficult financial decisions of its own.

"I mean nodisrespectwhatsoevertothe mayor or his administration, but it would beinconsistent for me to suggest it is not in therealmof possibility for the city to find savings inotherareas rather thangoingto a new fee or tax," Pallister said.

The premier also said Winnipeg may not appreciate how new fees will affect new developments as well as the affordability of new homes.

"When Isee the potential consequences of development moving from certain partsof our city to other parts as a result of this, that also concerns me. And when I see the potential for development moving out of our capital regionand moving somewhere else, that also concerns me," Pallister said.

While thePallister government has expressed little enthusiasm for Winnipeggrowth fees before just last week, Indigenous andMunicipal Relations Minister Eileen Clarke said the province is reviewing the legality of the proposed charges the premier's comments on Tuesdayamount to the strongest condemnation of the mayor's plan to find anothermeans of financing new municipal infrastructure.

Winnipeg's development and construction industry, as well as some city councillors, have alsocriticized the speed at which the city appears to be planning to bring in the new fees. Bowman said last week he is prepared to ask EPC to put off approving the fees until more consultations take place and amendments to the plan are made.

For example, the mayor said he would like to see some means of promoting infill development in Winnipeg instead of applying the fees to all areas of the city like a blanket.

Correspondence obtained by CBC Manitoba reveals Winnipegplanning, property and development director John Kiernan criticized that aspect of the planin August and said it wasn't consistent with Our Winnipeg, the city's long-term planning framework.

On Tuesday, Kiernan said thefirm Hemson Consulting came up with that plan and suggested it may be replaced with a "more nuanced" version after further review andmore consultations.