The question of how the purchase of a piece of property necessary for the proposed community campground project will be funded was on the agenda at the Nov. 14 Sicamous council meeting.
After discussion the decision was made to ask the seller for an extended closing date and defer the decision to the new year to allow the Agricultural Land Commission (ALC) to rule on the property’s use as an access point for the proposed campground.
The 23-acre property in question, located at 231 Old Town Rd., has been offered to the district for the price of $560,000 with a closing date in December.
The options presented to council by district staff were: funding the purchase through reserves or through a five- or 10-year loan issued through the Municipal Finance Authority. Staff’s recommendation was funding the purchase through reserves.
The reserve funding model presented by staff would entirely deplete the district’s campground reserve, land reserve, unspecified capital reserve and tax sale reserve. It would also take $109,250 from the Solsqua Bridge reserve, still leaving $570,000 in the reserve to cover cost overruns of the grant-funded bridge-replacement project.
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Along with the funding of the campground purchase, the potential sale of two properties which the district has deemed surplus was discussed at the meeting. An appraisal estimates the properties at 1214 Riverside Ave. and 109 Finlayson St. could put a total of $340,000 in the district’s land reserve if the sales go through.
Coun. Jeff Mallmes questioned the wisdom of depleting the district’s reserves rather than financing the purchase given other upcoming capital expenses including the purchase of land for an affordable housing project for which the district recently received a $3.6 million grant.
Coun. Malcolm Makayev seconded Mallmes’ concerns, noting that the district might have to buy a tree farm licence for the community forest project they have been working on.
Parliament said the district would probably require an extension on the sale’s closing date in any case. He said the ALC is unlikely to rule on whether it will allow the property to be used for access to the neighbouring property selected as a site for a community campground in time for the Dec. 15 closing date.
“We’re going to need an extension regardless and there’s no way the ALC is going to have a decision by Dec. 15. I do know that. It’s going to be in January,” he said.
Mallmes said he would like an answer on an extension of the property closing date before the next council meeting. Coun. Colleen Anderson suggested moving forward with the sales of the surplus properties even though the funds will not be immediately needed to replenish reserves.
The decision was made to hold off on selecting a funding model until 2019 so it could be worked into the budget for the coming year.
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jim.elliot@saobserver.net
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