Lisa Dressler, executive director of the Southeast Alberta Chamber of Commerce, says Medicine Hat city council should push back confirmation of the off-site levy bylaw. Eli J. Ridder/CHAT News

By Eli J. Ridder

Medicine Hat city council delays approval of new off-site levy

Sep 3, 2024 | 9:16 PM

Medicine Hat city council has pushed back approving a new off-site levy policy until December to give time for broader community consultation after overwhelming pressure from business leaders during a council meeting Tuesday evening.

Executives of the Southeast Alberta Chamber of Commerce cited delays in consultations, lack of transparency in the calculation models and unresolved issues from previous discussions in pushing for council to push off confirming a staff proposal.

Chamber executive director Lisa Dressler said businesses are particularly worried about the impact of changes to the nodes used in the levy model, the potential for increased costs and the overall competitiveness of the municipality.

“When you don’t understand the numbers going into the model that’s first of the challenges to occur,” Dressler said during an open hearing Tuesday.

In a written submission to the council ahead of time, the chamber proposed convening a roundtable discussion involving various stakeholders to address these concerns and ensure a transparent, predictable process.

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Coun. Andy McGrogan, Mayor Linnsie Clark and new city clerk Tarolyn Aaserud listen during a presentation at Tuesday’s council meeting. Eli J. Ridder/CHAT News

The chamber emphasized the need for a comprehensive approach to development incentives and stressed the importance of maintaining low off-site levies to attract businesses and developers.

John Hashem, owner of the Box Springs Business Park, said there is an appearance of impropriety on the city’s part when it comes to the off-site levy.

“Over the years, I estimate that the city has spent hundreds of thousands of dollars between city administrators, lawyers, engineers, consultants, including CORVUS, to develop and manage this bylaw that very few people understand,” Hashem said.

“The process to date appears that the city hall has a conflict of interest, considering that the city’s land department is our largest developer,” he continued in an address to council.

“They are also the approving authority for outside levies. They decide which projects go forward and at what cost. They also set the outside levy rates and collect the money.”

For Hashem, Dressler and others who wrote a letter to council, the complicated nature of the levies make development unpredictable.

Those opposed to the bylaw stressed the importance of transparency, predictability and a comprehensive approach to development and economic growth in the municipality.

There was consensus around the horseshoe that concerns raised by the business community were valid and required further consultation.

Council decided to postpone the new off-site levy, formally known as Bylaw 4803, to the first regular public meeting in December.

The motion also directed staff to provide an update on its consultations with developers at the first meeting in November.

There is no Municipal Government Act requirement to get the off-site bylaw update completed by a certain time, staff confirmed.

Council meets next on Sept. 16.