By Greg Nikkel
Weyburn city council is asking administration for major changes to the controversial development levy, claiming that the levy has curtailed or even turned away businesses from the city.
The bylaw was introduced in 2013, during a boom time in the city, with the rate of growth in the city predicted to reach 6.5 per cent a year. With the severe downturn in the oil industry, said city manager Roy Hardy, a more realistic rate would be more like two per cent, and even that would be considered very optimistic with the current economy.
The development levy was introduced with a view to helping to pay for the new infrastructure that would be needed with strong growth and development of the commerical and residential sectors of the city.
One of the more controversial aspects of the levy was a charge of $12.21 per square foot for an expansion to an existing business which would result in more use of city infrastructure, such as water and sewer. Councillors asked that this charge be removed, along with a reduction in the levy of $76,440 per hectare.
Hardy noted that council directed administration to review the bylaw to change it in light of the current economic conditions in southeast Saskatchewan, and he said a reduction can be made now in the levy, with a view to look at it again in 2021 to assess if the new level is a more workable one that developers can accept, and which will still help the city pay for infrastructure.
He told council that some of the recommended moves, such as to reduce the levy and removal of the charge of $12.21 per square foot on expansions of existing facilities would work on a temporary basis, but he doesn’t recommend removing the levy in the event where a developer wants to build on a vacant lot and add a large structure, which would add more demand on the city’s water and sewer systems.
“This is a very sought-after change,” said Mayor Marcel Roy, noting he and others on council campaigned on this change as the rate “was based on six-per-cent growth, which was an astronomical growth rate compared with other cities.”
He added that the rate as determined by Statistics Canada is more like 0.75 to one per cent, and two per cent would be a very strong growth rate.
An example where a levy should be retained would be the sale of city-owned farm land that a developer buy and put a large building on, said Hardy.
Coun. Jeff Richards said it wouldn’t bother him in the least if such a development occurred. “I would sleep very well if that happened, in fact I would encourage that,” he said, adding that in his view, two-per-cent growth “is a very aggressive growth rate.”
He said if in four years time council finds that the reduced levy is not at an adequate level, “that would be a great problem to have.”
The levy has been a “burr in the saddle” for Coun. Winston Bailey, noting that the unrealistically high rate of predicted growth was why the levy was raised from $40 to $86,000. He added of the $12.21 charge that he struggled with that, pointing out that it was a factor for some businesses to not expand, and to others to leave the city or not even bother coming to Weyburn.
Coun. Mel Van Betuw said he could go along with some of the suggested changes, but thought that removal of the levy would be unfair to businesses that have paid it, and suggested it was tantamount to giving something for free to a developer.
“To say people might get things for free is dangerous,” responded Coun. Richards. “I would be cautious with that kind of mindset. I think it warrants more discussion.”
Coun. Van Betuw said he’s not advocating trying to collect extra dollars from developers, “but we have to be careful to be fair to other property owners.”
Coun. Jeff Chessall said he would echo a number of the concerns expressed, and asked if administration could find out just how many vacant properties would even fall under this levy
“Where ever we end up, we have to be known for being open for business in this city,” said Coun. Bailey.
In an update on dealing with the CPR crossing at Queen Street, Hardy said they are discussing the possibility of removing the trees adjacent to the track with the owner of the property involved and are looking at putting up warning signs to motorists.
In the meantime, administration is looking into applying to Transport Canada for possible funding to improve the safety of the rail crossing and for public education about safety at the crossing. Hardy said there are grants available for this as well as for closing a crossing.
Hardy said it would involve having an inspector from Transport Canada look at the crossing to make any suggestions for safety improvements.
Coun. Dick Michel asked if it was possible in the short-term to have the trees removed and signs up by the end of October, since the request for funds to improve the crossing would be a long-term project.
Coun. Brad Wheeler pointed out that CP Rail wanted the crossing closed because they want to keep train speeds up and thereby reduce their operating costs.
Mayor Roy noted that the 16th Street crossing needs to also be considered, as trains cut off the South Hill from emergency services for as much as four hours a day.
