Lac La Biche County is looking for a cut of the revenue generated by increased industrial development on the Cold Lake Air Weapons Range (CLAWR), according to county Mayor Aurel Langevin.
More than two years ago a deal was struck between the provincial government, the City of Cold Lake, the County of Lac La Biche and the Regional Municipality of Wood Buffalo, which saw tax assessment revenue from the CLAWR go to Cold Lake in order to sustain the then-struggling city.
In exchange, Lac La Biche County, who agreed to relinquish the CLAWR and its assessment revenue to Cold Lake, would receive almost $20 million from the province and $15 million from Cold Lake over five years, as well as 1,500 square kilometers of land south of Conklin and north of the CLAWR – land which is also generating tax revenue from industrial development.
“When we had discussions with the province it was based on a certain level of development in the air weapons range. Now that there has been more development than was initially anticipated and there is extra revenue being generated and distributed, we want to be a part of that,” explained Langevin.
The mayor has also brought the idea up to provincial MLA and former Municipal Affairs Minister Ken Hughes, saying Hughes “heard us out and will be bringing the idea back to government.”
But Hughes gave no indication either way whether the government would take another look at revenue distribution from the CLAWR.
Cold Lake Mayor Craig Copeland said he was “frustrated and disappointed” that a deal made more than two years ago continues to be brought up as re-negotiable.
“I am disappointed that these meetings are going on and no one from the county has contacted the city and it is getting frustrating that Cold Lake keeps getting beat up for this deal and continually has to defend its position.”
Copeland said the original CLAWR deal was set up by the province, with two representatives present from each municipality, as well as representatives from major industrial companies operating in the area present at the meetings. The companies gave a presentation on predicted growth over the next 25 years in the region. He said Municipal Affairs assessors were also there with predictions on future assessment of the property being distributed.
In February, Cold Lake council made it the city's top strategic priority to ensure the CLAWR funding agreement holds true.
“We're working closely with the province to end this discussion about re-distributing funding from the air weapons range. If there are funding issues in this region, which there are, then the province needs to look at the region as a whole and not just at Cold Lake and the revenue we are receiving,” said Copeland.
Bonnyville Mayor Gene Sobolewski said the town is in the process of building relationships with its neighbours and working to find alternative solutions for funding the region's needs, and was hesitant to “go on a whim” and push to re-open the CLAWR deal, despite a need for increased revenue within Bonnyville.
“If the province decided to look at distributing the extra revenue generated from the weapons range, then I would definitely want Bonnyville at the table and part of negotiations. But the first deal was made and done, let's leave it at that,” said Sobolewski.
“We have started to develop partnerships and initiatives with our neighbouring municipalities like Cold Lake and Glendon,” said Sobolewski. “These are growing relationships, and jumping at something like this can easily break down those relationships we are building.”
Sobolewski said he feels working together as municipalities within a region is a much “stronger and sustainable” approach than fighting over any money that becomes available.
Copeland said he believes the funding deficits in the Lakeland are a result tax assessment disparity between neighbouring urban and rural municipalities throughout the province and that the solution is forming regional governments with inter-municipal revenue transfer agreements between municipalities within the regions.
