ELK POINT – Last week, the Town of Elk Point council met with Minister of Municipal Affairs Ric McIver to discuss the Town’s approach to Municipal Controlled Corporations (MCCs), following concerns raised by residents about the perceived lack of transparency in establishing the MCCs.
Aiming to bolster the region’s economy and to create jobs, the Town of Elk Point has recently established two MCCs and entered an alliance with Frog Lake First Nations (FLFN), Natural Fiber Technology (NFT), and the integrated hemp company ALLIVE. The alliance plans to build a hemp supply chain in the region.
MCCs, as defined by Alberta’s Municipal Affairs, are for-profit corporations controlled by a municipality, or a group of municipalities.
Elk Point’s MCCs are called the Elk Point Investment Corporation and the Green Building Incorporated. Town of Elk Point Mayor Parrish Tung explained the Elk Point Investment Corporation will oversee the Green Building Incorporated, reducing risk and liability to the Town of Elk Point.
The initiative to build a hemp supply chain in the region involves two parts - one is the production of building materials, and the other is production of food using hemp.
For the building materials part, FLFN, NFT, and the Town of Elk Point formed Asinikahtamwak LP Ltd., the company that will be responsible for delivering hemp-based cement products, and other lignocellulosic materials.
Asinikahtamwak LP Ltd. has set up a plant in the former STRAD building in Elk Point.
The second part of the project is the establishment of farming and hemp seed food processing in Elk Point through a joint venture between FLFN and Allive, according to information from the Town of Elk Point.
The farming operations will involve Ferma Incorporated and Super Food Incorporated, while the processing side will include Diversity Industries Incorporated and Natural Health Incorporated.
The Town of Elk Point will have to create a new MCC to represent 10 per cent in the farming side and 10 per cent in the distribution and processing facility side. There is no name for the Town’s MCC yet and a public hearing will be held sometime in September or October regarding the creation of the MCC.
Hemp for both the hempcrete block plant and food processing operations will be grown on organic land in First Nations and Métis settlements.
Concerns
As the initiative gains momentum, residents have raised concerns about transparency, as well as concerns about water usage, leading to Town of Elk Point council meeting with Minister McIver, July 15.
Asked how the meeting went and if Municipal Affairs plans to take steps to address concerns, Heather Jenkins, press secretary to the Office of the Minister of Municipal Affairs, said in an emailed statement to Lakeland This Week, that, “Following a very positive discussion regarding the two MCCs, Minister McIver encouraged the Town to ensure they were engaging appropriately with residents so they can better understand the Town’s goals.”
She further added, “Both the Minister and the Town agreed to continue to share progress regarding the MCCs and will meet again in the coming months.”
Tung said all processes involving the establishment of the two MCCs have been legally vetted, and an 800-page document detailing the MCC’s operations has been submitted to Municipal Affairs.
Regarding water supply, the mayor said there are ongoing efforts to build a water reservoir in Elk Point to meet future demand.
Elk Point sources its water from the Town of St. Paul, and he said water infrastructure development is crucial for sustaining the Town of Elk Point’s growth and ensuring a stable water supply for both residential and industrial needs in the future.
Tung reiterated that the primary objective of the MCC is to revitalize the local economy by fostering new business ventures and creating sustainable employment opportunities.
Elk Point, historically reliant on the oil industry, has faced economic fluctuations and high unemployment rates, he said, and the MCCs aim to mitigate these issues by diversifying the economic base.
The hope, according to the mayor, is to see a return on investment within the next few years through increased industrial tax assessment in the future.
“We want our Town to grow, we want to provide meaningful employment, not just our Town but for the whole region,” said Tung.
