Two local landowners, Ray and Sean Steele, will have to wait a little longer to find out whether their application to rezone 40 acres of land from highway commercial (C2) to urban reserve will be approved.
Councillors unanimously voted to delay second and third readings on two bylaws, the first one, after listening to comments from a Jan. 9 public hearing, until they are able to schedule a meeting to discuss the applicant’s concerns in more detail. The first bylaw (07-2017) would rezone the land, while the second bylaw (08-2017), which would rescind the Westside Developments Area Structure Plan.
Director of development and legislative services Cheryl Callihoo noted that Bylaw 08-2017 is only needed if the property, Lot 1, Block 1 of Plan 08233123, which is located near 49 Street and 63 Avenue on the west end of town, is rezoned because it would no longer fit into the structure plan.
The Westside Developments Area Structure Plan council passed in 2008 and identified areas of potential development in an effort to create a commercial corridor along Highway 33.
Councillors successfully gave first reading to both of the bylaws during their Nov. 28 meeting.
Ray Steele said work on developing the land began in 2007 and since then he and his son have invested a large amount of time and effort to attract potential businesses to the property, something they are no longer willing to do.
“It’s going nowhere and we cannot afford to keep throwing money into it. Last year we threw $18,000 down the drain and it’s not going to get any better,” he said.
The money Steele was referring to is property taxes owed to the Town of Barrhead. Later in the meeting Steele noted the tax bill was slightly lower, but they had to pay a fee for late payment.
“We even went so far as to bring the water across the highway, at a cost of about $85,000. Did I have to spend that money? No, but I had hopes that sooner or later something would turn around, but nothing is turning around. No one is interested,” Steele said. “So I don’t see why we should be expected to keep paying [at a higher commercial rate] because it isn’t viable, but we can’t afford to keep throwing good money after bad.”
Coun. Dausen Kluin asked if sometime in the future, businesses did show interest in developing the parcel, if they would be interested.
“I would like to think the Town of Barrhead would give us the latitude to give us the opportunity,” Steele said, noting he has no intention of selling the land for less than what they have already invested in it.
However, Steele noted if that were to happen they would basically have to start the process from the beginning, which is very costly and includes obtaining new site and traffic studies.
Coun. Rod Klumph said he would be reluctant in allowing the rezoning, as it is a part of the town’s overall development plan.
“What would you like me to do? Declare bankruptcy and give up the land to the town for unpaid taxes?” Steele asked.
Klumph said what he was referring to is if Steele would consider passing the land and the subsequent plans for development to someone else.
“We have offered that land,” he said, reiterating that he would not sell it for less than what he already has invested in it.
Steele then posed a question to councillors.
“We spent our own personal money and took a chance on Barrhead. What has the Town of Barrhead ever done to promote that property? Nothing.”
Kluin noted it wasn’t the town’s role to promote a private development.
Coun. Don Smith took exception to Steele’s comment, saying while they haven’t promoted the property per se, they have done lots to promote the town in general, which helps attract development.
“The town does a great job in promoting the community as a whole. We have rec facilities, we have an arena, swimming pool a curling rink, great schools. Your property is just something else that would enhance the entire Town of Barrhead,” he said.
Smith added he shared Klumph’s concern over rezoning the property.
“No one really knows what the future holds. If we rezone it to urban reserve and this spring something comes forward and the work you’ve done over the years is for naught. You would have to start from scratch and lose a year.”
Steele said he understands the risk, saying it is also a risk to continue as is.
Smith then asked administration if the previous planning would expedite the process, if someone would have to start the process over again.
“It would probably take anywhere from one to two years,” Callihoo said, adding the biggest obstacle is Alberta Transportation and the area structure plan.
She added while she hoped the department would take the work done for the previous structure plan into consideration, she did not know for sure.
Steele said he has had mixed dealings with Alberta Transportation.
“A few years ago we had someone interested in taking the front lots for a Tim Hortons and a Boston Pizza and we wanted an approach near the Schneider’s apartments [near 61 Avenue] and they shot it down with both barrels,” he said, noting the property has one legal approach.
Eventually Steele said he was able to come up with a solution, but by then the franchises lost interest.
Klumph asked how much individual plots were selling for.
Steele said it depended on where on the 40 acres they were, but the lots near the highway were listed at $250,000 an acre, but added the price was negotiable.
Charlie Parsons, a person in the gallery, asked if the amount of taxes the Steeles paid was comparable to similar properties such as the empty lot near Barrhead Neighbourhood Inn.
Chief administrative officer Martin Taylor said it would depend on what the property is zoned as, but everything in the same zone is taxed at the same rate.
Mark Vriend, from the gallery, asked if there was a requirement under the Municipal Government Act (MGA) to charge the Steeles the approximate $18,000 tax bill, or if they had any latitude in lowering it without rezoning the property.
“It is up to council’s discretion in terms of the taxation that is being set for any zone classification. It is also up to their discretion if they want to waive any taxes, but the property owner would have to make a business case for that,” Taylor said, adding council cannot waive the school, or senior housing part of a resident’s taxes as municipalities are required to collect them for the province under the MGA.
Klumph added taxation is one of the tools a council uses to make sure property owners go forward with developments and not just sit on land.
“When it [municipal councils] designates lands for development, it is looking for those lands to be developed. So we have the objective to make sure Barrhead is looked after in certain areas. And one of the ways the Town of Barrhead can do that is by maintaining some pressure through taxes to get that land developed,” he said. “For example if other land owners decide that they are not going to produce what they committed to, the only thing council can do is sit and wait.”
Mayor Dave McKenzie closed the public hearing by saying the rezoning process would take some time, but in the meanwhile, even though he and the town had it’s own objectives, he was confident a solution that would satisfy all parties could be found.
