Rebuild fees for Fort McMurray damage to be reviewed after residents’ anger

Homeowners described the costs as “disgusting” and a “slap in the face”

Insurance News

By Lucy Hook

The fee structure for rebuilding homes in Fort McMurray that were devastated by May’s wildfire will be reviewed by councillors after mounting pressure from residents.

After agreeing to the review, councillors with the Regional Municipality of Wood Buffalo asked administrators to re-evaluate the fees associated with inspections, demolition, and redevelopment of damaged properties.

The motion was passed unanimously after lengthy discussions about the financial challenges facing homeowners, with recommendations for possible amendments to be presented to council by September 27.

Residents had expressed their discontent at the costs incurred on rebuilding their homes in the aftermath of the disaster, with one describing them as a “slap in the face”.

Janene Whenham, who is in the process of rebuilding her home in Saprae Creek, told CBC News that she had spent $200 on a demolition permit, $4,000 on a truck to haul debris and ash to the landfill, and $3,800 to discard it at the municipal landfill, as well as a building permit which cost her $5,000.

Overall, Whenham expects to pay in excess of $20,000 in direct and indirect municipal fees to rebuild on the same property, and while her costs are covered by insurance, she said the fees were “disgusting”, adding: “The municipality should not be benefitting.”

“If the demolition permit and the tipping fees would have been waived from the beginning, at least the members of this community might have thought maybe they have their backs,” she continued.

“Right off the bat, you’re making money off me losing everything. I shouldn’t have to pay to dump that waste.”
Similarly, Holly Bennett, who lost her home in Saprae Creek said she was forced to pay $100 to cancel her utilities, even though her property was completely lost to the fire, and expects to pay hundreds more to reconnect the services when her home is rebuilt.

She said: “I don’t understand how the municipality can either ethically or morally think it’s okay to increase their coffers by making money off of the people who have already had their lives destroyed.

“The fact that anyone has to pay permit fees for homes destroyed by the fire is outrageous.”

While councillors have conceded to a review of the fees, it comes at a time when the municipality is facing budget shortfalls, and is projecting a deficit of $16m.

Cllr. Tyran Ault said the region is set for some difficult decisions, adding: “There’s probably more cuts that are going to have to be made.”

Related stories:
More Fort McMurrays to come
Insurance Bureau says Fort McMurray insurers ‘don’t always get it right’

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