1 week Ago By Brandon Sun
It has taken several years to finally reach this point, but Brandon City Council has finally proceeded with the implementation of development cost charges that more accurately reflect the costs that the City of Brandon incurs as a consequence of real estate development projects throughout the city. Read this article for free: Already have an account? As we navigate through unprecedented times, our journalists are working harder than ever to bring you the latest local updates to keep you safe and informed. Now, more than ever, we need your support.
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It has taken several years to finally reach this point, but Brandon City Council has finally proceeded with the implementation of development cost charges that more accurately reflect the costs that the City of Brandon incurs as a consequence of real estate development projects throughout the city. Read unlimited articles for free today: Already have an account? Opinion It has taken several years to finally reach this point, but Brandon City Council has finally proceeded with the implementation of development cost charges that more accurately reflect the costs that the City of Brandon incurs as a consequence of real estate development projects throughout the city. On Monday night, city council voted to increase development charges (DCCs) for transportation and land drainage network infrastructure.
The new rates will become effective on June 6 of this year. Monday’s vote marks an important step in the development charge saga that has been unfolding in Brandon for the past four years. The City of Brandon began charging DCCs in 2019, but the fee schedule fell far too short of equalling the cost of new infrastructure.
In response to that problem, the city hired consultants to review the fee structure and provide advice as to how the charges should be changed. In late 2023, the consultants recommended that the DCCs be increased significantly to more adequately cover the city’s costs associated with each project, along with the debt servicing costs it incurs. Those recommendations immediately ignited opposition from developers, who argued that the proposed fees were far too high.
Days later, a reduced fee proposal was released, but developers again objected. Last August, city administration released an updated DCC proposal and the proposed rates were even lower. They also appeared to shift a greater cost burden to established areas of the city, with lower rates for new developments on the outer edge of the city.
Yet again, developers disagreed with those proposals. Last November, we argued that it was time for growth to finally start paying for growth in Brandon. We urged city council to stand its ground, by passing a development cost charge fee schedule that comes closer to covering the cost of development in Brandon.
It is gratifying to see that city council has now acted on that advice, at least in part, by approving new DCCs for transportation and land drainage network infrastructure. We note, however, that new rates for water and wastewater services must still be passed by city council at a future meeting, and must then be approved by the Public Utilities Board. It was reported yesterday that city administration plans to recommend that the new water and wastewater DCC rates be phased in over a three-year period for high-density developments, but that Shawn Wood, executive director of the Construction Association of Rural Manitoba, says that “Whether it’s a five-year or three-year phase, the fact is that the dollar figure hasn’t changed.
We think it’s unfair.” That may be his view, but fairness is often a matter of perspective. Many Brandon taxpayers, who would otherwise be saddled with huge infrastructure costs caused by new developments, likely have a different perspective of what is fair in the circumstances.
The interests of developers must be balanced against the interests of Brandon taxpayers. For that reason, we agree with Mayor Jeff Fawcett, who has previously emphasized the importance of balancing the need for housing with the need to collect appropriate fees from developers to keep infrastructure sustainable. That said, it is fair to ask if much of the work done on DCCs in Brandon over the past four years, and all the controversy relating to their size, may ultimately be for nought.
On March 31, Liberal Leader Mark Carney promised to lower the cost of home-building by “cutting municipal development charges in half for multi-unit residential housing while working with provinces and territories to keep municipalities whole.” Just yesterday, Conservative Party Leader Pierre Poilievre announced that a newly elected Conservative government would push cities to cut development charges on new home construction in Canada. He said his government would require municipalities to make cuts worth up to $50,000 for new homes, with half of the lost revenue reimbursed by the federal government.
In summary, a Liberal government would reimburse the city for lowered DCCs charged with respect to one form of housing. Under a Poilievre government, however, cities would apparently lose half of their DCC revenue from new home construction. The uncertainty caused by the two campaign promises has serious ramifications for the city and, in particular, for the DCC fee schedule passed on Monday and the water and wastewater rate proposal currently before city council.
It adds yet another degree of uncertainty over an issue that has already taken far too long to resolve. Advertisement Advertisement.
