Weyburn city council granted a five-year tax exemption to a church which converted a former farm implement dealership building into their church building.
The request for the exemption was made by BMC Services Inc., which operates as E. Bourassa and Sons Equipment Ltd., as they own the building which now houses the OneStop Life Centre Inc. church at 96 17th Street.
Normally the City will grant tax exemption to a church for a building they own, where worship services are held.
OneStop Life Centre does not own this building, but they have been registered on title as a lessee, said BMC Services owner Kurtis Bourassa.
In his letter to city council, he explained the church has “an interest in the above property and should qualify for a tax exemption as a church since they are not renting the property, they are engaged in a lease-to-own agreement.”
This lease-to-own agreement is for a 10-year period, with the plan for the church to have the building fully paid for within five years.
Coun. Jeff Chessall said this is a different situation than most churches have, as they either rent or own their properties, and noted as a member of the Young Fellows Club, they faced a similar situation as a non-profit service club.
They rent a building from its owner, Prairie Sky Co-op, but applied for a tax exemption, which was granted for a five-year period.
“If they are making their payments and if everything follows through, they will be exempt in that time-frame,” said Coun. Chessall.
Coun. Jeff Richards asked Bourassa if he understood right, that OneStop Life Centre is not the owner of this building.
Bourassa confirmed this, noting they won’t be registered as the owners unless they convert to a mortgage.
“It’s an awkward spot for us,” said Coun. Richards, pointing out that the church could back out of the lease agreement if for some reason they couldn’t continue with it.
Bourassa responded that he feels the board of this church are very reputable, and noted they have invested a lot into the building to make it suitable for a church, investing close to $100,000, so they will not walk away from that.
City assessor Theresa Hicks pointed out that there is another church in Weyburn which does not own their building but rents it, and they do not get a tax exemption. She pointed out doesn’t qualify for a tax exemption just because this group uses the building as a church.
Coun. Winston Bailey asked city manager Mathew Warren to clarify the rules as they stand now.
“They don’t qualify as the rules stand right now, but it’s within our purview to make this exemption?” he asked, and Warren confirmed this is true.
He also pointed out that council can put in any terms they want in their motion for the exemption, such as if the church backs out of their lease that the taxes could then be owed by the owners.
Bailey said he didn’t want to sound pessimistic, “but the city has to protect itself too.”
“The exemption is not unrealistic for these guys. They put about $100,000 into that building, they’re not going anywhere,” said Bourassa.
Council approved a five-year tax exemption with conditions, and it was approved unanimously.
