Winnipeg, MB - Following a pause to allow for greater consultation with community stakeholders and industry groups, significant amendments are being recommended to an impact fee initially proposed in September's administrative report Mayor Brian Bowman and Councillor John Orlikow, Chair of Standing Policy Committee on Property and Development, Heritage, and Downtown Development announced today.
An amending motion released today recommends that Executive Policy Committee (EPC) consider a phased-in approach to implementing impact fees - an approach that includes a reduction to the fee initially proposed for residential developments - and that a working group be established to support and advise the City throughout a three-year phase-in of the fee.
"Since the administration report was tabled, we have been listening to many different ideas from many different stakeholders with respect to impact fees," said Mayor Bowman. "I believe the changes recommended for EPC's consideration represent a fair and balanced path forward. I want to thank Councillor Orlikow for all the time and effort he has invested in preparing this motion, and for working openly and transparently with fellow councillors and industry representatives."
Recommendations in the motion propose that the impact fee be phased in over three-years. The motion recommends that the impact fee by-law be passed and come into effect November 1, 2016, but that in the initial phase of implementation no fees be collected for six months until April 30, 2017. Beginning May 1, 2017, collection of impact fees will commence for residential developments, but only at a rate equivalent to 50 percent of what was originally proposed by Hemson Consulting and recommended in September's administrative report. During this initial phase of implementation, the reduced impact fee will only apply to residential developments in new and emerging neigbourhoods as represented in OurWinnipeg/Complete Communities.
Commercial, office, industrial, and institutional developments will be exempt from any impact fee for two years, and residential infill developments in downtown, mature, and existing neighbourhoods of the city will be exempt for three years. These exemptions will allow for additional time to determine if and how impact fees in these areas could be implemented.
The amending motion recommends that a working group be established comprised of elected officials, city administrative staff, and industry and community stakeholders to advise on the fee's implementation over the three year phase-in period. This group would provide for ongoing
industry and community participation and input into future impact fee rates and their manner of application, input into projects funded from revenue generated from impact fees, and unique insights into any existing and changing market conditions.
"I have spent a significant amount of time listening and speaking with over 40 different stakeholders about impact fees," said Councillor Orlikow. "I believe a phased-in, structured approach to implementing an impact fee together with active, collaborative and constructive industry input throughout the phase-in period is the best approach."
Councillor Orlikow noted a phased-in approach to implementing a impact fee better aligns the implementation of this tool with the upcoming review of OurWinnipeg, the City's long term planning document, which is scheduled to begin later this fall.
"A structured, phased-in approach to implementation with ongoing industry collaboration and input that aligns with a review of the City's long term planning strategy will be valuable for the city, developers, and our residents," said Councillor Orlikow.
"Winnipeg is growing, our capital region is growing, and strong and steady population growth is projected to continue," said Mayor Bowman.
"As a city, we need to be thinking about and planning today for a future we know is going to create increased demand on existing city infrastructure and services, as well as for new infrastructure and expanded services. It is not enough to only be building Winnipeg for today. We need to be building Winnipeg for the future."
Copies of the amending motion and the original administrative report released in September are available on the City of Winnipeg's Decision Management Information System.