HRM explores pausing permits for developers with outstanding fines
HALIFAX, N.S. — There’s not a whole lot HRM can do if a developer owes the municipality thousands of dollars in court-ordered, construction-related fines.
But Coun. Kathryn Morse (Halifax – Bedford Basin West) said HRM might be able to pause issuing development permits to developers who are not paying up.
At council this week, Morse explained she discovered recently a case involving a developer in her district that went through the courts years ago. The judge found in favour of HRM, ordering the developer to pay $250,000.
“But the fines hadn’t been paid so I was concerned about this,” Morse told council.
The fines are to be collected by the province and then handed over to the HRM.
“I understand that these fines aren’t being collected by the province and they have perhaps a long backlog I’m not sure, but it’s not being prioritized,” she said.
She requested that staff prepare a report with options that would enable HRM to withhold permits and planning approvals for companies with unpaid fines. Council unanimously approved.
A wider issue
Coun. Lindell Smith (Halifax Peninsula North) said this is definitely a wider issue than just the one case in Morse’s district.
“I had cases in the past — not as large as you’ve mentioned — but where fines have been issued for developments not following rules,” he said.
But it can often be complicated to collect, explained HRM solicitor John Traves. Sometimes, a numbered company is put together to get a development up and is dissolved afterward. That makes it difficult for the province to collect.
But the property still exists after the numbered company is dissolved so there are avenues to collect, Traves added.
Coun. Pam Lovelace (Hammonds Plains – St. Margarets) said she was a little shocked to hear about this problem.
“Is there an issue with our fines system because $250,000 is a little bit much and … it’s over a year and a half that this conversation in her district has been going on? At what point is this system or this process actually triggering for staff to say ‘Houston, we have a problem here?’”
” Who can argue with allowing people to get away with not paying fines that were ordered by the court?”
– Kathryn Morse
Awkward timing
In an interview on Thursday, Morse said she didn’t want to disclose the name of the developer and that she didn’t know the particulars of why the company was fined.
“I’d rather not get into that until the staff report gets back and I find out if there’s something we can do. I don’t want to pinpoint someone unless I know there’s more we can do in terms of collecting on the fines,” she said.
“It’s not so much about who, it’s how we go about making sure this money owed to HRM actually comes to HRM.”
And it comes at a time when HRM is under extreme security over the speed of the permitting process. On Oct. 12, hours before the province announced Bill 329 that would make huge changes to the Halifax Charter including giving some developers expedited services, including freezing all municipal permits and development fees, Morse asked staff to add this item to Tuesday’s council’s agenda.
Morse said the timing was entirely coincidental.
“I just didn’t want to wait any longer because I’ve been aware of this situation for some time and I just couldn’t find a way to collect on the money.”
Morse said the province and developers are not going to like the idea “but who can argue with allowing people to get away with not paying fines that were ordered by the court?”
Morse said she doesn’t know the extent of the issue — how many fines are outstanding from developers throughout the HRM — but the staff report should shed some light on that.
She suspects the hold-up is at the provincial level, that collecting fines for HRM is not considered a priority.
“So essentially I’m trying to find a workaround and a way to collect the money and we thought if there’s a way to withhold future building permits from companies that have outstanding fines, that at least would be one way to incentivize them to pay.”
