COLD LAKE – The Federal Court of Appeal has determined that the federal government’s previous assessment of the value of 4 Wing Cold Lake was not reasonable, taking the side of the City of Cold Lake as the municipality fights to get what it believes it is owed.
The federal government has now been tasked with making a new decision based on the findings of the Federal Court of Appeal, or make an application to the Supreme Court of Canada.
On July 29, the City of Cold Lake released a statement detailing the situation.
“The Federal Court of Appeal has ruled that the way the former Minister of Public Services and Procurement Canada valued 4 Wing Cold Lake was unreasonable,” reads the statement.
This decision, according to the City, is a step forward in the municipality’s attempts to resolve a dispute over Payment in Lieu of Taxes (PILT) payments from the federal government for 4 Wing Cold Lake.
"While each property owner in Cold Lake pays property tax, the federal government, as the owner of 4 Wing Cold Lake, instead makes a payment in lieu of tax as set out by the PILT Act,” reads the City of Cold Lake statement. “PILT is intended to be the amount that would be paid in property tax, had the federal property been taxable. This creates a fair distribution of the tax burden between federal and non-federal properties in municipalities.”
For the past decade, the City believes the federal government has been undervaluing 4 Wing Cold Lake.
“This has required the rest of the City’s taxpayers to pay more to cover the shortfall,” according to the City.
“Since the beginning, the City has maintained its position that 4 Wing Cold Lake, arguably the most important military base in Canada, needs to be valued in the same manner that all other properties in Cold Lake are valued,” according to the City of Cold Lake. “The position of the Minister has been that 4 Wing Cold Lake should be valued as if it is an unserviceable property, reducing the land value considerably.”
The City of Cold Lake says the underpayment totals almost $14 million now.
“We have been fighting for a decision on this PILT dispute since 2012,” said City of Cold Lake Mayor Craig Copeland. “It was never an option for us to give up. When your largest taxpayer shorts its tax bill, the rest of the residents are forced to pick up the slack."
The Federation of Canadian Municipalities (FCM) intervened at the Federal Court of Appeal, taking the side of the City of Cold Lake.
On July 23, the Federal Court of Appeal issued its judgment, agreeing with the City.
“This case will have an impact for all municipalities that have federal property within their jurisdiction,” said Copeland. “In Cold Lake, where nearly one-third of the City’s land base is federal property, it is important that federal properties are valued accurately.”
