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Editorial Comment
Dec. 27,
2006
Gasoline
Alley Annexation Will Be Costly
to Taxpayers
The 'Future Directions' growth strategy
recently adopted by City Council seems to make sense, providing for
orderly growth over the next several years in all directions. The
strategy maintains the downtown as the centre of the city, balances
commercial and industrial land use, and preserves a considerable amount
of green space.
It is a strategy, however, that will be very costly to both the city and
the county, especially with the inclusion of Gasoline Alley.
Implementing the plan will increase taxes in both municipalities. It
will also result in the loss of the co-operative relationship between
the city and county
that has developed over many years. The uncertainty of conflict will
cause developers to look elsewhere.
The cost to the county is tremendous in that the potential loss of
Gasoline Alley robs the county of 30%
of its tax base. In fact, the city's overall growth strategy will take away most of
the county's commercial and industrial revenue.
Last year, recognizing the city's need and right to grow and in an
effort to avoid a prolonged war over land, the county presented the city
with a plan providing for growth in all directions except the south and
southwest. This plan would have the county giving up a huge portion of
its tax base in return for being allowed to make up its loss by
developing in the south, including Gasoline Alley.
The city turned down the proposal expecting the county to accept that
the city has the right to grow in all directions as it sees fit. There
is an underlying belief in the city that the county has no right to encourage
urban-style development anywhere near the fringe.
However, councillors and administration
have
maintained that it had no interest in Gasoline Alley as it would be too
costly to bring it up to city standards.
And they were probably right. In annexing Gasoline Alley, no one wins.
County taxpayers will see their taxes increase as the result of the loss
of its primary source of revenue. City taxpayers will also see their
taxes increase, first to compensate the county for the infrastructure
and short term tax loss and then to replace the infrastructure to bring it up to
standard.
In addition, there will be the immense cost of litigation fighting the
county as the county believes it has no choice but to oppose any
annexation of Gasoline Alley.
The primary beneficiaries of the resulting uncertainty will be Blackfalds, Lacombe,
Sylvan Lake, Penhold and Innisfail, not necessarily a bad thing. But
other beneficiaries will include Airdrie, Balzac, Leduc, Edmonton and
Calgary.
The only cost-effective solution is for the two municipalities to form a
joint development zone in the south with jurisdiction remaining in the
county with a long term tax sharing plan
to compensate the city for urban services.
Costs are reduced. Integrity, co-operation and opportunity are
maintained.
Everyone wins, especially the taxpayers.
Paul Pettypiece
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