Council for the District of Squamish unanimously, and little to no discussion, adopted the 2009 Tax Rate Bylaw, which carries a tax increase of 4.7 per cent for property owners, and a decrease of 2.7 per cent for businesses at a special meeting Tuesday (May 12).
The increase means an additional $76 a year in taxes for owners of homes in the $450,000 range. The decrease will give owners of businesses valued at approximately $525,000 an annual savings of $142.
The overall tax increase for all classes averages out to just under three per cent. The Five Year Financial Plan bylaw was also adopted.
SODC debt accrues
The Squamish Oceanfront Development Corporation (SODC) must complete its business plan by the end of 2009 or risk paying back a $3.3 million loan within five years.
With the SODC's original accumulated loan of approximately $2.5 million, Drew Stotesbury SODC CEO, said the Pacific & Western Bank of Canada was concerned with the dormant state of the lands, and in a position to call the loan, wanted to see a return on investment, hence the need for a business plan.
The cost of the plan is expected to cost an additional $800,000 including the team's wages, which council approved borrowing from the bank at the special council meeting, bringing the total accumulated loan closer to $3.3 million.
Mayor Greg Gardner said the money being borrowed actually represents very little risk to the taxpayer because the loan is secured against the land, which has been appraised at $21 million.
Once developed, Gardner expects the value of the land to be closer to $500 million. In essence he contends the approximately $3.3 million borrowed is minor compared to potential gain.
"It is low risk if you accept the belief this business planning process adds value to the land," Gardner said.
At a committee of the whole meeting earlier on Tuesday (May 12), Stotesbury provided the first monthly business plan process update.
Stotesbury is part of a team of former Intrawest real estate executives, David Greenfield and Trevor Dunn. Their task over the next six months is to create a business plan for the development of the publicly owned Squamish Oceanfront Lands.
"The engagement of our team has given us a mandate and we are looking for feedback as we proceed," Stotesbury said. "What we are starting is the physical planning and we have to think today what it is going to be like in five years."
So far, Stotesbury said, the team has reviewed, digested, inventoried and begun to assess previously gathered information. While the Create the Oceanfront planning process defines the land use vision for the entire peninsula, Stotesbury said the SODC business plan will provide a manual on how to turn that vision into reality for SODC lands.
"It's a luxury for us to be working in parallel with the Oceanfront planning process and to some extent we can piggyback a number of touch points to inform our final plan," Stotesbury said.
Council received Stotesbury's report and Coun. Corinne Lonsdale reminded Stotesbury to place a greater emphasis on job growth with SODC development.
