Penhold town council will not give a tax break to the owner of Wild Rose Manor, whose 18-unit apartment building was totally destroyed by a fire last spring.
Jim Guilbault will instead have to pay full taxes on the now vacant lot as if the apartment were still standing.
“I will have to take some time and decide what my plans are going to be,” said Guilbault when told last week of council's decision. “I live in Lacombe and when three houses burnt down, the city immediately announced taxes would no longer be charged on the improvements. I had expected the same treatment in Penhold.”
Guilbault's request for a partial tax waiver on his 2014 tax bill was put to town council at its regular meeting on Sept. 8.
Administration came to council with a recommendation it waive all improvement taxes for the remaining 2014 and 2015 year on the site of the destroyed building at 40 Esther Close with the added condition of taxing the land at a residential rate when a replacement structure was erected. As well, council was given a second recommendation to have the land reassessed for the 2015 tax year.
“As an administration we researched a number of local municipalities to find out how they dealt with situations where a fire destroyed a building and the tax implications,” said Rick Binnendyk, Penhold's chief administration officer. “We found out that there was no consensus on the issue and issued our recommendation.”
Debate was passionate with nearly every councillor weighing in on the delicate motion, which was narrowly defeated by a vote of four to three.
Coun. Mike Yargeau put forward a secondary motion to change the tax bill to full taxes up to the date of the fire on April 10, and taxes on the vacant lot from April 11 to the end of December, which would result in a refund of more than $10,000 to the owner.
“We want to provide incentive for Guilbault to rebuild in Penhold,” said Binnendyk of the recommendations. “The town of Penhold does need more housing units.”
Coun. Sharolyn Sanchez asked whether a potential refund was to be issued back to Guilbault or a credit for the 2015 tax year was to be given. Binnendyk said the method of refund would be left to Guilbault's discretion.
Coun. Cory Kingsfield noted Guilbault does not even live in Penhold, and that the community does not benefit from any refund he might be entitled to.
“If we had this discussion two months ago, the tax ‘loss' would not be an issue,” said Yargeau of the delay in dealing with the request.
Coun. Mike Walsh added the timing of the request, or whether or not Guilbault had insurance coverage, was not the issue but rather, “Do we waive the taxes or not?”
The second motion was also defeated four votes against three leaving the owner of Prentiss Martom Ltd. to pay full taxes for the 2014 and upcoming tax year.
“If and when Mr. Guilbault decides to rebuild on the site, we encourage him to sit down with the town and negotiate with us,” said Cooper. “We are open to incentives to help him rebuild as soon as possible.”
Meanwhile, the Lacombe businessman is looking at his options.
