Weyburn city council denied a request from developer Dan Cugnet of Kenjo Holdings, to waive the offsite development levy for his proposed CottonWood development of housing on Hartney Avenue, to replace the Pioneer Place cottages.
Noting that there were previously 32 housing units in this area, Cugnet said in a letter to council the plan is to reduce the number to 18-20 housing units, which would be a reduction in the demand on infrastructure, not an increase, which is what the development levy is supposed to help pay for.
He also pointed out this is not a new area of development, and that they have spent a significant amount of money in demolition and removal of the Pioneer Place cottages, and in remediation of the land to prepare for new development.
The city’s development officer, Amanda Kaufmann, told council at their meeting on Monday evening they would discount the levy for 16 dwelling units, with a total development levy of $13,536 to be charged for the CottonWood project, or $752 per lot.
She also noted the city has incentives such as Weyburn Builds, which could provide a 75-per-cent reduction in property taxes for three years if the development qualifies.
“This is a very grey area for me on whether the development levy applies,” said Coun. Jeff Richards, asking why the development levy would apply to this proposed project.
Kaufmann noted the city would be putting in a lot of infrastructure assets, such as sidewalks and curbing, water and sewer, and with the previous development of Pioneer Place, the entire property was privately owned and did not require the city to maintain or upkeep the infrastructure that was there.
The levy is justified, said Coun. Mel Van Betuw, who noted the funds go to support the costs of infrastructure for the City of Weyburn, both current and future.
“Everybody hates to pay levies and taxes, but they are necessary for the city survive and thrive,” he added.
Asked when the levy is due to be paid, Kaufmann said they are due to be paid upon the issuing of the development permit, or else a developer could request to make an agreement with the city on a payment schedule.
In his letter to council, Cugnet said if this is about water use, the consumption rates should be increased for water use to offset infrastructure demands.
“By not doing so, the city is penalizing and stifling growth with these development levies rather than encouraging and incentivizing it,” said Cugnet.
Council voted 5-1 to reject the waiver request, with only Coun. Jeff Chessall in favour of it, while Coun. Winston Bailey was absent for the discussion and vote due to a conflict of interest.
• Coun. Dick Michel said the City’s Walk of Fame committee has chosen the 2019 recipient of the honour to be actress Trenna Keating, who was born and raised in Weyburn and lives and works as an actress in Toronto. The plaque for the Walk of Fame will be unveiled in front of City Hall during the annual Show and Shine to be held on Saturday, June 15.
Coun. Michel noted the criteria is very strict about who can or cannot be eligible for the Walk of Fame, as it includes that they have made accomplishments on the national or international stage, “so people on the wall are deserving to be there.”
Keating has acted on a number of TV series, including “Combat Hospital”, “Anne With an E” and as Doc Yewll on the science-fiction series “Defiance”, along with other productions.
• There will be an additional cost to transfer the City’s pension plan from Great West Life over to the Municipal Employees Pension Plan (MEPP), council was told on Monday evening. Even though council had approved the move to close out the old pension plan and move the assets to MEPP as of Dec. 31, 2018, it had to be approved by regulators, which occurred on Feb. 19, so the pension move will take effect as of Friday, March 1. This will mean additional interest charges of $287,435 to pay out the pension plan.
Coun. Van Betuw asked what the interest rate being charged was, and was told it was set at 5.75 per cent.
“I begrudgingly will agree with it, because we don’t have any choice. I guess for the City, it’s a cost of doing business for us,” he said.
Mayor Marcel Roy agreed with Coun. Van Betuw’s concern that this interest rate seems very high compared to other interest rates, and said, “I’m hoping we’re nearing the end of having to pay them more money.”
Finance director Laura Missal said this was the interest charges that were due, and was not a interest penalty.
She noted the City could have transferred the pension funds earlier, but they had to wait for the approval by the regulators first, and this was why there was a delay.
