The Town of Banff is drafting a policy that governs how to handle leasing and licensing municipal property in a bid to deal with all interested businesses fairly.
The policy is part of a commitment by council to look at several policies, but incidentally comes hot on the heels of one canoe rental operator claiming they were shut out of the bid process for a lengthy time.
The leases and licences include concessions like the one at the canoe docks or food outlet at the Fenlands Recreation Centre, as well as lots leased in the industrial compound.
Officials say this draft policy ensures that people who are interested in these leases and concessions will have a fair and open chance to bid for them at predictable intervals.
Councillor Leslie Taylor said she was pleased with the draft policy, but did successfully push for some stronger wording surrounding the issue of public notice.
“When we advertise for a lease – new or expiring – we must include the proposed term and must include whether there’s a chance for extension,” she said during a finance committee meeting, June 13. “That needs to be in the ad so the public knows.”
The Town leases or licenses various Town-owned properties to outside operators. Administration wants guidelines for employees to follow when managing these leases and licences.
According to a lawyer for Western River Runners (WRR), the Town of Banff should set an example at all times of fairness in its business dealings.
Claire McMordie, of West End Legal Centre, said WRR was disappointed to not be a successful bidder in 2005, but accepted this as an outcome of fair competition.
She said the company was given written assurances in 2006 that an opportunity to tender would be available after five years, in time for the 2011 season.
“However, the canoe concession agreement was amended in July 2009, with no notice to the public and no debate within council, with no apparent advantage to the Town, and with the result that WRR is shut out from tendering for this important activity for an additional three years,” she said.
Coun. Stavros Karlos said he wants to see a philosophy that the Town plans to get fair market value for lease of these lands enshrined in the policy.
“If we didn’t, that would leave us open in some cases to quite a big separation between what we’re asking for and what fair market value actually is,” he said.
“And it leaves us open to being accused of undercutting the marketplace.”
Although the finance committee is made up of mayor and council, the Revenue Licensing and Leasing Policy must still give a final stamp of approval at a council meeting.
