Whether or not municipal taxes should apply to a building project at 1942 Kramer Place was a hot topic at council Monday night.
The project is spearheaded the Canadian Mental Health Association - The Battlefords, which is building an eight-room housing project at the location called 鈥淚ndependence Commons.鈥�
In her presentation to council, the executive director of CMHA Battlefords Branch, Jane Zielke de Montbrun, explained the interpretation of the Cities Act regarding their tax exemption is in dispute.
Section 262 (1) (p) states that the following is exempt from taxation 鈥渟o long as the buildings and lands are actually used and occupied by one of the following institutions, the buildings and land attached owned by a division, branch or local unit of:
(i)The Royal Canadian Legion Saskatchewan Command; (ii) the Army, Navy and Air Force Veterans in Canada; (iii) the Disabled Veterans鈥� Association of Saskatchewan; and (iv) the Canadian Mental Health Association (Saskatchewan Division).鈥�
Based on that provision, it was thought CMHA would be tax-exempt for the housing project. The city indicated as such to CMHA Battlefords Branch in initial conversations prior to the project going ahead, according to Zeilke de Montbrun.
CMHA then included the information on cost savings from the budget exemption in their funding application to the Saskatchewan Housing Corporation, which was approved.
The issue is that this section of the Cities Act is vague. While the housing project is spearheaded by CMHA, the building and land will be occupied by residents who have previously suffered from mental health or addictions issues.
The project could be seen as strictly a rental development. If that were the case, Zielke de Montbrun explained at council, 鈥渁 strong case could be made in favour of taxation.鈥�
She further explained there is more to the project than simply rental housing.
鈥淲e, however, see Independence Commons as a multi-facetted program that incorporates affordable and safe homes, skills building that teaches independence and stability to those living with mental illness and/or an addiction, wellness programs to support recovery, and recreation activities to reduce isolation.鈥� The project also includes the Living Well Learning Centre, the common building.
Because of the uncertainty, Zielke de Montbrun made a request that council grant them a five-year tax exemption on municipal taxation. That would provide the project with the financial stability to proceed as planned, and also allow CMHA to begin the appeal process on the tax exemption issue.
The general indication is that council is interested in finding some sort of short-term solution that would help CMHA. The suggestion from Councillor Greg Lightfoot was for a shorter exemption of three years while the tax issue is sorted out, with an option to extend for two more.
Administration to bring a report back to council with more information on the issue to determine what to do next.
