An agreement that was years in the making has finally been signed off on by both the MD of Bonnyville and the City of Cold Lake.
In December 2013, the City of Cold Lake sent the MD formal notification of their intent to annex over 20 quarter sections of MD land connecting Cold Lake north to Cold Lake south.
“It's been a long process, but these things always are,” said MD of Bonnyville Reeve Ed Rondeau. “Right from the get-go, I don't think anybody was in any big hurry. It would have been nice if it had gone faster, but we weren't spending days and days negotiating.”
The agreement they formally signed and announced is a joint submission for 11-quarter sections of land. The changes would come into effect Jan. 1, 2018 with the city paying the MD a compensation of $500,000.
Rondeau explained the compensation is not for the land itself, but for the tax assessment the city will be absorbing, and roads.
Before the annexation is approved and the land changes hands, the agreement must be sent to and approved by the Municipal Government Board (MGB).
The 11 quarter-sections to be annexed are along Highway 28, and would turn the city's shape from a dumbbell to a rectangle.
“When they created the City of Cold Lake boundaries, it was kind of strange the way they set it up,” said Cold Lake Mayor Craig Copeland. “It was vital that we shape the city better. When it became a city there were some design issues. This from a planning perspective is going to work better than current practices.”
The agreement also includes measures to minimize taxation impacts on residents and business owners in the annexation area. Residents and businesses in those areas will still have their properties assessed as though they were living within the MD, however, they will be taxed by the city using a lower tax rate.
If the annexation is approved by the MGB, these measures would be applied to those with properties in the annexed area up to 2068 or until the property owner subdivides, re-designates, or connects to the city's sewer or water services.
“I think it's a win. Most of the residents living in these areas were in support of the annexation,” Copeland said.
The annexation was spurred by numerous needs from the city, including the accommodation for growth in Cold Lake over the next 50 years and to gain land necessary for the delivery of urban services to current and future residents.
Public consultations will happen before the annexation agreement is sent to the MGB. Copeland estimates it could be about a year before there are any big changes.
“I think this is a good deal signed off by both councils. It's a fair deal that's going to make the City of Cold Lake function a lot better and we appreciate the MD of Bonnyville's support.”
