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Council must hold fast on levies

I am pleased that city council voted against an administration recommendation that would have added $95 million to our tax bill next year in the form of a direct subsidy to Landrex, the developer of the new Erin Ridge North subdivision.

I am pleased that city council voted against an administration recommendation that would have added $95 million to our tax bill next year in the form of a direct subsidy to Landrex, the developer of the new Erin Ridge North subdivision.

We will have to hold council’s collective feet to the fire to make sure that they don’t fold under what is surely to be an aggressive lobbying campaign by the development industry before this matter comes back to council in January.

Coun. Len Bracko was correct in pointing out that the fiscal climate has changed with the recession and I argued at the public hearing that many Alberta municipalities are starting to charge developers the full cost of infrastructure for new subdivisions so that new growth will not be a burden on the already overburdened taxpayers. What may have been acceptable five years ago is no longer being swallowed by the taxpayers, who are also not swayed by the threat that developers will go somewhere else.

Many of our senior homeowners are not excited about yet another urban development if it results in increased property taxes and while the new area structure plan (ASP) for Erin Ridge does have some positive planning aspects, this is not about planning.

Following Monday’s hearing, the chair of UDI — who is also the consultant for Landrex — was quoted as saying that, “any changes to staff’s proposal must be approved by UDI before the off-site levy bylaw could be approved.” This, in my view, is a serious misrepresentation of the provincial government regulations as it applies to off-site levies. There is an obligation to consult with the development industry and other affected entities but the city “retains the flexibility to set the levies in a manner that recognizes the unique or special circumstances of the municipality (Alberta Regulation 48/2004).”

The public has a right to be heard through the public hearing process but there is also an obligation on behalf of city administration to “full and open disclosure of all levy costs.” I have raised the matter of disclosure on two recent occasions regarding this ASP application because I believe that I am entitled to the same information provided the developer and I hope that the city will provide me with certain financial material I have requested so that I can come to my own conclusion with respect to the proposed levies. This is an important point because to date, the developer and the UDI lobby group have had the privilege of negotiating in private with our administration while ratepayers must fend for themselves. We should not only have full disclosure but also be afforded the opportunity to question administration. The fact that the current chair of UDI is also the chief consultant and spokesperson for Landrex further complicates the communication issue.

The 2004 amendments to the Municipal Government Act gives St. Albert council sufficient power and discretion for the setting of off-site levies so that the newly annexed areas can be developed without creating a burden on our existing taxpayer. Council has set the stage for a new formula for off-site levies. Citizens now have to be diligent to ensure that there is not backtracking by council.

Bob Russell, St. Albert

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