City annexation process continues

The City of Yorkton's proposed annexation of lands from the Rural Municipality of Orkney went before a public meeting in the city Thursday as a step in the provincial arbitration process.

The City is looking to annex a number of parcels of land which it already owns in order to bring them into the city boundaries. The lands include the Yorkton Airport property, land along Grain Millers Road, and a purchase effective January 2012 land south of Queen Street.

The City began the process to hand the matter over to the Saskatchewan Municipal Board (SMB) after local negotiations stalled, according to Yorkton Mayor James Wilson.

Wilson said the meeting, which attracted about 50-people, was encouraging. While few spoke on the subject during the meeting, a number of letters of support from organizations were received, including from the Yorkton Chamber of Commerce, Yorkton Airport Authority and the Airport Tenants Association, and the local Economic Development Committee.

"It is invigorating and appreciative to witness all of the organizations supporting the city and our quest to annex city owned land," said Wilson.

The City has offered the RM a compensation package based on lost tax revenues the annexation will cause. The City would pay the RM a lump sum payment based 15 times taxes raised on commercial property annexed, and five times on agricultural land

Wilson said they began talking to the RM in May 2010 regarding the annexation, and since then the City and RM have exchanged letters, and met several times, but no agreement has been reached.

Carmen Gattinger, lawyer for the RM said the level of compensation is an issue. The 13.5 quarters which the City seeks to annex would provide the RM with a compensation of $184,000 using the City offer, said Gattinger.

"The compensation we feel should be a little higher," she said, adding there are reasons they seek more.

Gattinger said a key reason for seeking higher compensation for the RM revolves around roads, in particular Grain Millers Road, which following the annexation will become the city's north boundary, and by provincial statute the road will remain the responsibility of the RM (municipalities are responsible for roads on their southern and western sides).

Gattinger said the RM in partnership with businesses along the road has already spent $600,000 to upgrade one-mile, and that project will still require $550,000 to complete.

"And there's two more miles (to do)," she said, adding those are significant costs the RM wants some reimbursement for. She noted the City was "asked to participate" in the upgrade project, but did not.

The land being annexed south of the city will also leave the City responsible for sections, and the RM for other sections of the same road, creating what Gattinger termed "a patchwork for a road."

Given the situation of the two boundary roads Gattinger said "there is some major work to be done on roadways," in terms of getting an annexation deal done.

The RM also believes the compensation needs to be higher in the face of rising fire protection costs from the City.

In 2009, the RM paid $8,800 a year to the City for fire protection services. A deal Fire Protection Agreement signed following the last City attempt at annexation from the RM has been phased in since 2009, and will see the RM pay $229,793 in 2012, for services to RM residents within five-miles of the fire hall, said Gattinger.

Gattinger said the deal for fire protection services is one the RM was basically forced to sign. "You have to have fire protection in order for people to get insurance," she said.

Wilson said the issue is annexation, and not about an already existing fire services agreement, or what municipality is responsible for roads as laid out by the province.

"It is discouraging that the basis of argument from the RM Council is (concerns over) Grain Millers Road and the Fire Agreement (with the City)," said Wilson. "Both arguments are irrelevant to the annexation for provincial legislation dictates the RM Council is solely responsible for Grain Millers Road, and the jointly signed the Fire Agreement provides their citizen's families with assurance and safety and further reduces industry liability."

Wilson said he remains hopeful an annexation agreement can be negotiated.

"I am pleased that the RM Council realizes the need for the people of Yorkton to have the right to annex the land as part of a growth strategy," he said.

In hoping for a negotiated deal, Wilson is joined by Gattinger.

"We just want to sit down and negotiate a settlement," she said.

As part of that process the Yorkton Mayor said "we will be looking for the SMB to provide a Mediator from the Dispute Resolution Office." That request will likely be made in January, with the provincial board having four months to arrange the mediation.