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Understanding Development in Winnipeg an Informational Briefing for City Council and Winnipeg Citizens

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Understanding Development in Winnipeg an Informational Briefing for City Council and Winnipeg Citizens Understanding Development in Winnipeg An Informational Briefing for City Council and Winnipeg Citizens Presented by: September 20, 2016 Prepared by Understanding Development in Winnipeg Contents 1. Executive Summary .................................................................................................................. i State of Winnipeg’s Infrastructure ...................................................................................... i Current Development Agreement Parameters Process ......................................................ii The Overarching Vision for Winnipeg ................................................................................. iii The Value of New Development ......................................................................................... iii Comparison to Neighbouring Municipalities ...................................................................... iv Growth Assumptions ........................................................................................................... v Capital Project Assumptions ............................................................................................... vi Other Jurisdictional Practices ............................................................................................ vii Determination of Costs ............................................................................................... vii Stakeholder Engagement ............................................................................................ vii Attribution to Growth ................................................................................................. vii Accountability and Transparency .............................................................................. viii Authority ........................................................................................................................... viii 2. Introduction and Background ................................................................................................. 1 About UDI / MHBA .............................................................................................................. 1 Purpose of This Report........................................................................................................ 2 Why It’s Important .............................................................................................................. 3 3. Context .................................................................................................................................... 4 State of Winnipeg Infrastructure ........................................................................................ 4 City of Winnipeg Financial Situation ................................................................................... 5 Historic and Projected Growth ......................................................................................... 11 Population .................................................................................................................. 11 Employment ............................................................................................................... 12 Housing Market ......................................................................................................... 14 Commercial and Industrial Market ............................................................................ 15 4. Current Planning Environment ............................................................................................. 17 Municipal Authority .......................................................................................................... 17 Prepared by MNP LLP Understanding Development in Winnipeg Municipal Plans ................................................................................................................. 19 OurWinnipeg .............................................................................................................. 19 Complete Communities ............................................................................................. 19 Urban Sprawl vs Smart Growth (CaRDI , 2016) ......................................................... 23 Sustainable Transportation ....................................................................................... 24 Other Infrastructure Plans ......................................................................................... 25 City of Winnipeg Development Process ........................................................................... 25 Development Agreement Parameters .............................................................................. 27 5. Value of Development to Winnipeg ...................................................................................... 30 Economic Impact of Home Construction .......................................................................... 31 How New Development Pays for Its Impacts ................................................................... 31 Direct Investment ...................................................................................................... 31 Assessment Contribution of New Homes .................................................................. 32 Cost Benefit Studies ................................................................................................... 34 6. Other Jurisdictions ................................................................................................................. 35 Considerations when Comparing Winnipeg to Other Jurisdictions.................................. 35 Recognized Practices for Attributing Costs of Growth ..................................................... 36 Planning and Background Study Requirements ........................................................ 36 Meaningful Stakeholder Engagement and Collaboration ......................................... 37 Benefit ........................................................................................................................ 38 Limitations on Development Charges ....................................................................... 39 Accountability and Transparency Mechanisms ......................................................... 39 Capital Region Municipalities ........................................................................................... 40 Contributing Factors for Development Cost Charges in Small Municipalities .......... 41 7. Concerns with the 2016 Growth Study ................................................................................. 44 Growth Projections ........................................................................................................... 44 Identification of Costs ....................................................................................................... 45 Projects Not Approved or Listed Above Approved Costs .......................................... 45 Projects Previously Completed .................................................................................. 47 Lack of Planning and Technical Rigour to Fairly Attribute Costs ............................... 48 Disregard of Winnipeg’s Utility Model ...................................................................... 49 Prepared by MNP LLP Understanding Development in Winnipeg Process .............................................................................................................................. 49 Impact ............................................................................................................................... 51 Vision for Winnipeg ................................................................................................... 51 Loss of Development to Surrounding Communities ................................................. 52 8. Concerns with the Proposed By-Law..................................................................................... 52 Fairness and Equitable Application of Fees ............................................................... 52 Accountability and Transparency .............................................................................. 53 Authority .................................................................................................................... 54 9. The Path Forward .................................................................................................................. 54 Collaborative Process ........................................................................................................ 54 Sound Principles and Analysis ........................................................................................... 55 Effective City Planning, Fair Allocation ...................................................................... 55 Clear, Consistent Policy; Accountability and Transparency ...................................... 55 Next Steps to Long Term Sound Solutions ........................................................................ 55 10. References ............................................................................................................................. 56 Appendix A: Sources of City Revenues ........................................................................................ 62 Other Revenue Sources .................................................................................................... 63 Appendix B – Winnipeg Development Agreement Parameters ..................................................
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