The City of Winnipeg has been ordered by the court to refund millions of dollars in impact fees to developers and builders.

On Wednesday, Court of Queen’s Bench Justice James Edmond handed down his 119-page decision on the controversial impact fees which have been in effect since 2017.

Impact fees imposed a development charge on developers and builders of $54.73 per square metre of floor area.

Mayor Brian Bowman pushed for the development charge, arguing the new communities were not covering the costs of related infrastructure and services.

The Manitoba Home Builders’ Association, along with several other development companies, questioned if the city had the legal authority to impose impact fees.

In his decision, Edmond writes that the bylaw and resolution regarding the impact fees “imposes a constitutionally invalid indirect tax and is not saved as a valid user fee or regulatory charge.”

Edmond wrote in his decision that the city is now required to refund impact fees to the developers and builders that paid the fees together, along with any interest earned on the funds while they were deposited in the city’s Reserve Fund.

Those developers and builders must in turn pass it on to those homeowners who paid the charge.

As of the end of 2019, the city has collected $29.7 million of impact fee revenue.

“I really think that this is representative of a lot of things that we have seen at City Hall,” said Coun. Janice Lukes.

Money from the fund was earmarked to help pay for a new firehall in Waverley West. Lukes, the area councillor, voted against the impact fee’s implementation.

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