DIDSBURY - A legal dispute over industrial lots in the north end of Didsbury looks to have finally been resolved.
The mortgage and tax deal between a local developer and the Town of Didsbury for six lots in the north end industrial area has been under some scrutiny over the past couple of months.
Developer James Carpenter, who owns 852016 Alberta Ltd., which at one time owned all six lots but has since sold some, appeared at council on May 8 and proclaimed that the mortgage owed to the town and outstanding property taxes had all been paid off in full.
The four lots still owned by Carpenter (Plan 0714629 Lots 4-7) were set to go to public auction on June 11 under the provisions of the Municipal Government Act for tax arrears. The notice for the public auction was published in the Province of Alberta Queen's Printer's Alberta Gazette on April 30.
Didsbury mayor Rhonda Hunter said council was glad to see the issue with the mortgage and taxes resolved.
"Mr. Carpenter declared at our May 8 regular council meeting during the gallery question period that he has paid the full amount of outstanding taxes and the balance of the mortgage owing to the Town of Didsbury," said Hunter. "Council is satisfied with the financial outcome and resolution of the situation."
Didsbury CAO Harold Northcott confirmed that 852016 Alberta Ltd. has paid the mortgage and outstanding taxes in full in relation to the lots (Plan 0714629 Lots 2-7). Northcott also confirmed that the total of outstanding taxes paid to the town was $82,244.58.
When asked if there was still a legal dispute, Northcott said, "As noted, 852106 Alberta Ltd. has paid the amounts outstanding to the town. You would have to make inquiries with him as to any other disputes he believes are outstanding."
In 2012, in a bankruptcy settlement for Harvest Builders (a privately owned corporation whose principal officer and sole shareholder was Darla Carpenter, ex-wife of James Carpenter) the lots were awarded to Marco Contracting, a company owned by Gordie Reimer. The land was registered as being transferred to a company owned by James Carpenter (852016 Alberta Ltd.) on Sept. 19, 2014, according to a historical land title certificate for one of the lots.
The town had issued a $250,000 mortgage to Harvest Builders to buy the then-municipally-owned lots in 2010. It was discharged on Sept. 16, 2016 according to the same document. It also noted that three months earlier on June 10, a different Town of Didsbury mortgage was registered on the title for $310,628.
"I've lived up to my obligations set forth by the town," said Carpenter to council at the May 8 meeting. "Now the Town of Didsbury has no reason to not honour their obligations and commitments going forward. No more excuses, no more delays. I'm also excited because this means I can fully move forward with full recovery of losses, erroneous charges, defamation, slander and lost land sales as a result of the actions of this town."
James' wife, Rhonalyn Carpenter, also spoke and asked council why "the town has penalized us $10,212 for not paying the mortgage on Dec. 31, 2017 when they were fully aware we had a deal for $660,000 that was delayed because of their 'illegal' sewer line."
Since acquiring the six lots, Carpenter has sold lots 2 and 3 and most recently 4 to Altamix Concrete. Lot 3 was sold to Altamix on Sept. 16, 2016 for $200,000, while Lot 2 was sold to Altamix on Nov. 30, 2017 for $550,000, and, most recently, lot 4 was sold to Altamix this past April for $208,000.
Carpenter said the town has acted "negligent and foolish" by charging him a penalty when it's the town's fault he couldn't sell certain lots due to what he calls an undisclosed sewer pipe that hampers where development can occur.
Carpenter said he discovered the sewer pipe running through the property in March of 2016 when excavating. He said that there was nothing on any maps prior to that.
"I paid them over $150,000 in taxes under this 'tax scheme,'" he said. "Every time a lot sold the town got tax money. As per the agreement, there was a balloon payment on the taxes. Everything is paid off. I don't owe the town a cent. They still don't have services for two lots and they still have a sewer pipe through my property that's owned (the pipe) by the town."
Carpenter said that they can't build on lot 6 due to the sewer pipe.
"The town won't issue a development building permit to build on top of their very own pipe," he said. "We submitted a drawing to build a shop, Colter (Hutton, owner of Altamix) was going to build but they won't issue it unless we spend $2,000 a meter and excavate it up, cap it and seal it. We're thinking, 'but it's your pipe and it shouldn't be there.'"
Carpenter said that the unusual property tax deal -- whereby a built-out value to the lots was set as opposed to assessing taxes on market value -- carried on through the entirety of the deal as ownership went from Harvest to Marco to Carpenter.
Carpenter is still hoping to get a letter from the town allowing him to build over the pipeline so he can sell the remaining properties and leave town.
Northcott confirmed that there is a sewer pipe running along the property line of lots 4, 5, and 6.
"There is nothing 'illegal' about the sewer pipe," said Northcott to the Gazette by email. "The owner of any of those lands is welcome to submit any application for a development permit in relation to any proposed buildings on the lands.
"That application would be dealt with by the planning and development department in accordance with the land use bylaw and other applicable legislation, and we cannot comment or commit to any specific approval outside of that process."
