One of the major players in Winnipeg’s development industry is halting work with the prospect of a new regulatory fee.

Qualico said it’s grounding future plans in Sage Creek over concerns demand will drop for new lots. Qualico’s Eric Vogan said adding this proposed fee up front will hurt the market and drive business out of town.

“If I go ahead and say, ‘Maybe it’s not going to happen,’ and then I’ve got $3 million worth of lots that nobody wants, I’m going to look pretty stupid,” Vogan said.

Vogan added this could also jeopardize development plans in future phases of other suburbs like Ridgewood West.

A report released Thursday said sprawling developments and other builds are not covering the costs of necessary infrastructure and services. It proposes an $18,000 fee on an average new house.

In a statement, Mayor Brian Bowman called Qualico's announcement "premature". He said builders have called for more time and discussion, but now it appears they want to speed up the decision.

"We need to take another deep breath. The concept of recouping the costs of growth through fees is not new. Every municipality neighbouring Winnipeg uses this tool, and just about every municipality in Canada uses it as well. Why should Winnipeg be any different?" Bowman said in the statement.

Bowman said it’s a case of all property owners paying more tax or just those in growing areas.