Chris Clegg
South Peace News
Fear of liability and future costs to the High Prairie taxpayer, and possible resale issues, are a few of the reasons High Prairie town council decided to not purchase the old hospital land for $148,000.
The land eventually sold for $1.75 million meaning council potentially passed up on a $1.6 million profit had they purchased and resold. Such profit may have been used to not increase water rates as planned or future tax increases.
Council issued a news release which is published unedited in its entirety on page 3. It is unsigned but submitted on behalf of the entire council.
After citing numerous concerns, council did write the following:
“Looking back at our concerns, they turned out to be non-issues. The land sold quickly and for an amount that would have made it worthwhile. If we knew then what we knew now, the decision may have been different.”
“May” but still not guaranteed council would have sold and generated a huge profit.
The Alberta government offered the land to council last year and gave them four months to consider the offer. After refusing to buy, the government put the land up for sale through a Grande Prairie realty company. When that occurred, CAO Bill McKennan was directed to prepare another bid which was never disclosed. At the time, the prime 10-acre parcel of land in the middle of town was listed at $500,000.
“At the time of the original decision not to purchase the old hospital land, Council had concerns that the acquisition of these lands would have exposed the Town to significant risks,” writes council.
“First, the land has a culvert that runs through the property, which is old and will need replacing. Council did not want to purchase the land and then be responsible for the costs o
“Secondly, we did not know if we could sell the land and recoup the cost of the land plus the costs of replacing the culvert. There were also concerns as to how quickly the land would sell, given there are properties along the highway at both the east and west end of town that have not been sold.
“If we held the land, there would have been additional costs associated with maintaining the site.”
However, council does not address how much maintenance would cost opposed to a potential $1.6 million profit from the resale.
Council also cites loss of future taxation. Again, however, council does not compare the potential $1.6 million profit for one or two years worth of taxation before reselling.
Council also alludes to “limited internal capacity to undertake a large development project” which was discussed by council. But they make no mention of the possibility of buying and reselling, making development costs a moot point.
The news release also reads: “Council strives to maintain an open and transparent disclosure of information to our ratepayers.”
However, council never disclosed to the people of High Prairie they refused to buy the land after they informed the Alberta government of its decision bringing transparency into question. Despite repeated requests, council has also never disclosed the vote on the matter. Who may have voted to buy (if any member of council) is not being released.
Council does address the possibility of a potential park or development at the site.
“Some residents of the town had indicated they wished the land would be returned to the town for future needs. The specific future needs or new services may all have merit. However, these potential ‘new costs’ must be balanced with the costs of maintaining the Town’s existing infrastructure. Unless this balancing of current and future need is managed further significant financial challenges and affordability for the current and future ratepayers will continue.”