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M.D. debates who should pay for development
Chris Clegg
for South Peace News
Councillors appear ready for a spirited debate very soon when the M.D. of Big Lakes council discusses implementing an offsite levy bylaw.
At the heart of the matter is, who should pay for development: the developer or both the developer and council?
And, is council willing to subsidize a developer’s cost to increase his profits?
“Everyone is (currently) paying for some developer to make money,” said Triangle, Gilwood Councillor Ken Matthews in opening discussion.
Joussard Councillor Guy L’Heureux immediately objected saying a levy would curtail development in the hamlets.
“There is a cost,” said Matthews. “Someone has to pay.”
Reeve Alvin Billings asked L’Heureux, who is currently developing land in the Joussard, why he was doing so. The obvious answer was to make money.
“But I wouldn’t be developing if it cost me a $90,000 levy,” said L’Heureux.
He added before development his property brought the M.D. only $800 a year in taxes. After development, he estimated the taxes at $16,000 a year.
“Who gets the benefit?” asked L’Heureux.
“And where does the money go for 50 years?” asked Kinuso Councillor Ken Killeen. “The M.D.”
However, Matthews countered the tax money is needed to maintain infrastructure.
Barlow Surveying’s Mary Jo Van Order wrote council offering her opinion.
“Implementing these offsite levies is a fiscally responsible step for the M.D.,” she says. “I have watched the process of establishing these offsite levies in Calgary several years ago. The developers there did not like these costs being added to their projects and resisted it, but in the end they had to accept them.”
She added the public does not realize the infrastructure costs associated with development; or, how much a municipality must pay in services.
“I believe that the offsite levy process not only makes it clear who pays for what and how much, but also helps make the whole process open to public scrutiny.”
Council held two open houses in High Prairie and Joussard to invite public input. In Joussard, 13 people attended; in High Prairie only two.
Administration is preparing the bylaw which allows for full subsidy on future road construction but for water and sewer costs to be paid by the developer.
L’Heureux and Killeen agree such offsite levies would slow down development because of high costs.
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