The Town of Canmore has ceased collecting recreation levies from the development industry as result of a recent court decision.
Council made the decision earlier this year to suspend the collecting of fees used to fund capital projects related to growth of the community.
However, the move means that approximately $1.3 million in funding expected for the Mulitplex facility is no longer available.
Bow Valley Builders and Developers Association (BOWDA) president Terry Burch, speaking at the organization’s annual general meeting, brought up the change in collections.
“BOWDA is in preliminary discussions with administration to determine the future of this bylaw,” Burch said. “Regardless of what happens, BOWDA members should be proud of the approximately $5 million contributed to date to recreational infrastructure in Canmore.”
Funds from the levy have been used to build the second ice sheet at the Rec Centre, Centennial Park upgrades and the skateboard park.
Susan Barry, former executive director of the association, voiced her concerns, saying the original policy was agreed to even though it was legislatively questionable as the industry supports recreation projects related to new growth.
“We have had legitimate projects funded by a willing industry,” she said, adding she is concerned Canmore has prematurely suspended its program.
The reason for the change in collecting the levy was a recent Court of Appeal decision that limits the ability of any municipality to extract levies from the development industry unless those levies are specifically permitted under the Municipal Government Act.
The decision came from a challenge to levies collected by the Town of Okotoks by the Prairie Communities Development Corp.
Okotoks had included in its offsite levies charges for regional recreation capital works, inspection fees, engineering review fees and water-related fees or licences.
BOWDA board member Frank Kernick said the majority of the executive is supportive of continuing Canmore’s rec levy arrangement with the municipality after it confirms with the membership this is still being done on a voluntary basis.
Acting manager of municipal infrastructure Gary Buxton said Canmore has ceased collecting the contribution until it has undergone a complete review with the help of BOWDA.
Buxton said $2 million of the $39 million Multiplex budget is supposed to come from the rec levy and in fact already $700,000 from it has been diverted to that project.
However, that transfer drained the fund completely and if the levy as a result of the court decision can no longer be collected, there is an implication for the major project.
“I would change the funding formula if that funding ceases,” he said.
