It was an announcement Cold Lake Mayor Craig Copeland had been waiting for years to sign.
It's also an agreement Copeland said will finally allow Cold Lake to become sustainable in the long term.
Representatives of the provincial government met with Copeland to sign the memorandum of understanding that officially ratified the tax reassessment deal that will see the City receive over $16 million in tax revenue within the next five years from the Cold Lake Air Weapons Range (CLAWR).
Hector Goudreau, minister of municipal affairs, and Lloyd Snelgrove, minister of finance, joined Copeland to sign the official document in front of an audience of current and past City councillors, representatives from the MD of Bonnyville, industry representatives, and media at Cold Lake City Hall.
The deal marked the end of a period of financial uncertainty as the City of Cold Lake struggled to deal with a significant and accumulating deficit as well as to expand to support both growing industry sectors and the air force base.
The provincial government got involved after a joint request to provincial leaders in January from Copeland and former base commander Col. David Wheeler.
“On paper, it looks like a really simple deal, but all the people involved know it was like a rollercoaster ride on Coney Island,” Copeland explained.
The agreement functions on a five-year transitional basis, in which tax revenue from industrial development on the CLAWR is shifted from Lac La Biche County to the City of Cold Lake.
In exchange, the City will give Lac La Biche transitional funding, starting at $5 million and decreasing annually by $1 million until the fifth year.
Lac La Biche will also get new tax revenue from townships north of the CLAWR that are being transferred from the Regional Municipality of Wood Buffalo.
The City is also required to provide the MD of Bonnyville funds starting at $600,000 a year to pay for maintenance of the roads leading to the CLAWR. The level of funding will increase to $1 million annually at the end of five years.
By 2017, after transitional payments are complete, the City should be receiving over $16 million or more, depending on new oil projects.
“I think what this is going to do is lead the foundation to rebuild this city,” Copeland said at the signing ceremony. “I really think 10 years out, this city is going to be an amazing place to live. It's also going to be great for the MD of Bonnyville and surrounding area. The city is probably going to be the commerce centre for northeastern Alberta.”
He praised council for their tenacity in securing the deal.
“We were like a dog on a bone, we didn't want to give up. I think the biggest person in the room that needs credit is our community. The community has backed our council and backed administration and been patient with us and really supported us. I think when news gets out about the deal, the City of Cold Lake and around the area is just going to think this is great for the City.”
The deal is controversial for the Town of Bonnyville, who was left out of negotiations despite repeated attempts to convince representatives of the provincial government they should be invited to the table and funding should be divided on a regional scale.
In the end, the Town of Bonnyville was left out of the deal entirely, and Copeland said he hopes the Town moves forward to work with the City in a positive way in the future.
“It's up to the Town of Bonnyville to show the leadership to work with the City of Cold Lake, and I'm sure it's in our best interest to work with the Town of Bonnyville on regional initiatives,” he said.
“Sure, it's a bit of an issue right now because the Town of Bonnyville is not part of the deal. But I think that they will look back and look at how they're going to deal with it and look amongst themselves for leadership on how they are going to move forward. Our council is committed for Cold Lake and with the wing commander, that's what we focused on. People in Bonnyville don't vote us in, people in Cold Lake do.”
Copeland gave Genia Leskiw, MLA for Bonnyville – Cold Lake, credit for advocating for the City despite the awkward position she was in.
“Certainly it's a difficult spot that she's in, balancing two big urban centres between Cold Lake and Bonnyville, but I think what everybody's got to respect is (Leskiw) was representing Cold Lake here and trying to make a change for the citizens of Cold Lake and I think she deserves a lot of credit for tricky manoeuvring as MLA.”
After the signing ceremony, Leskiw said she will continue to work hard for the citizens of Bonnyville every bit as much as she works for those in and around Cold Lake.
“I live there, I pray there, I bank there, I shop there. It's my hometown,” said Leskiw. “But as an MLA, I've got to represent the entire region, and people are always pulling me to represent just one area.
“To me, I represent all the area, and if I can do a little bit of something to help the City of Cold Lake or the MD or aboriginal communities or the Town of Bonnyville, that's my job. I feel good about the deal. I don't feel that I'm selling anybody out.
“Bonnyville is a strong, vibrant community,” she added. “Bonnyville has great people living in it. It's been my home for 36 years, and Bonnyville's not going anywhere. Bonnyville is going to survive.
People in Bonnyville are fighters and they are survivors. I love my community of Bonnyville, but I love my constituency.”
Leskiw added now that the deal with Cold Lake is complete, she intends to move forward and promised to work tirelessly to help the Town of Bonnyville and its citizens find solutions for their needs as well.
