After taking most of spring and summer to review the contract to rebuild Kananaskis Golf Course following the 2013 floods, the provincial government announced Wednesday (Sept. 30) it will proceed with the project as it is in the best interests of Alberta taxpayers.
Minister of Environment and Parks Shannon Phillips reiterated the NDP government does not want to be in the business of running a golf course, but said following a review by Deloitte LLP on the rebuild and options available, the decision was reached to move forward.
But the decision was not without criticism of the previous Jim Prentice Progressive Conservative government that inked the 2014 deal to rebuild and operate the 36-hole golf course in a provincial park with Kan-Alta.
“We were concerned, as were Albertans, that the previous government did not act in the public interest. We were concerned as were all Albertans that taxpayer’s dollars were not being spent prudently,” Phillips said. “We still have those concerns and that is why our decision on the Kananaskis golf course was guided by the public interest and the interest of taxpayers. There are things we did not know that we do know now.”
She said the contract signed in 2014, which does not expire until 2026, locked the government into rebuilding the course or walking away from it, which would leave taxpayers on the hook for millions of dollars. Phillips said analysis showed that walking away from the contract could cost from $16.9 million to up to $30 million.
“After examining all the information and options, the completion and rebuild results in the best approach for taxpayers,” she said.
While the past could not be changed without significant liability to taxpayers, Phillips committed the government to moving forward to publicly tender the golf course operation in 2026 when the current agreement expires. She also said a portion of provincial revenues that come from the golf course – estimated at $1.7 million a year – will be directed to upgrade William Watson Lodge, a facility for Albertans with disabilities to stay and enjoy the outdoors at a reasonable cost.
The course is expected to be restored, with flood mitigation included in the design, by summer 2017. After federal reimbursement for funds related to the disaster financial assistance program, the net cost for Alberta will be $3.8 million or $8.8 million, depending on eligibility for an increased $5 million in flood mitigation reimbursement. Approximately $2.5 million has been expended for work completed to date.
