Chris Clegg
South Peace News
The owner of a High Prairie apartment building is asking town council to alleviate financial pressures he faces operating the facility.
Cameron Munro, representing CTM Realty AB Inc., appeared before town council at its Feb. 25 meeting to explain his situation at Lawrence Apartments. Council deferred a decision to its March 11 meeting because three members of council were absent; Mayor Brian Panasiuk and councillors Sacha Martens and Judy Stenhouse.
Specifically, Munro requested council give him a 36-month tax forgiveness or credit.
“There is an expressed concern over the continued operation and ability to provide safe, habitable housing for working-class residents,” wrote Town of High Prairie CAO David Joy in a report to council.
“We’re a small company,” said Munro. “(We have a) passion for affordable housing.”
Munro told council he has spoken to other apartment owners in town (Green Acres and Aspen Court) who share similar concerns, specifically about ongoing crime. He cited examples including break-ins, and windows being smashed in vehicles and in the building.
“It creates a very unsafe environment for our tenants,” he added.
He also told council that taxes have risen 43 per cent since the last assessment making it increasingly difficult to operate. The assessment resulted in a $10,000 annual increase in taxes, Munro said, but council later heard from Joy it was closer to $15,000.
“We do have a cap on our rents and no ability to raise (rent),” he added, due to regulated cap rents on the building’s mortgage conditions.
The reason for the tax forgiveness request was simple.
“. . .be able to sustain affordability of this building.”
That, because the building’s net operating income has dropped below zero, threatening long-term viability.
Added repair costs (many windows, kitchens, bathtubs and sinks date back to 1973) add other costs.
Councillor Donna Deynaka asked Munro point-blank a tough question.
“If you don’t receive what you’re asking, what’s your next move?” she asked.
“The building will continue to deteriorate,” replied Munro.
“I don’t know how far this will go . . . the inability to raise rates . . a downward spiral,” he added.
In regard to the criminal activity, Deynaka asked Munro if anyone was charged and/or convicted.
“No closure,” replied Munro.
There are currently no video cameras at Lawrence Apartments but Munro replied it’s on the list to do.”
Other criminal activity at the apartment included arson-related dumpster fires, vandalism (a bicycle being thrown through the front lobby window), keys were stolen and the breaker flipped casing the boiler to shut down and costly repairs.
Joy wrote in his report to council there are drawbacks to providing the relief.
“The dilemma for council is that if tax forgiveness is approved, then the Town’s property owners and businesses will experience an additional increase in their property taxes to compensate. If council forgives this particular apartment building, then the landlords of the other apartments or condo buildings will demand equal treatment and seek similar tax forgiveness,” wrote Joy.