Candidates lay down land purchase views

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This article was published 12/10/2018 (2022 days ago), so information in it may no longer be current.

Steinbach’s three candidates for the mayor’s chair and 10 challengers for council seats responded to another question from The Carillon this time on the subject of land acquisitions.

All 13 candidates answered the following question: Are you satisfied with the City of Steinbach’s approach to land acquisitions? Do you think city council can improve the way in which details and rationale for these investments are communicated to the public?

Mayoral candidate Paul Neustaedter says the current city council has overspent on land acquisitions. Neustaedter points to a Feb. 7, 2012 decision by council to set aside reserve funds specifically for future recreation and culture investments.

“This council significantly raised taxes at the same time. The stated goal of this fund was to put money aside for a future multiplex facility,” he said.

Though Neustaedter says that fund should have accumulated $6,658,000 for such a facility, as of this summer there is only about $2.5 million in the fund.

“I think the public will be very concerned about this. Without a proper plan council has been spending this money on things like land. I’m sure they will say that things like the curling club or privately operated movie theatre also came out of this fund,” he said.

He adds that land negotiations and purchases should be done within the policy of the Manitoba Municipal Act and should not have a conflict of interest.

“$6,658,000 is a lot of money and, without a proper plan, money seems to simply disappear. If this was a business, someone would say, ‘take the cheque book away.’”

Mayoral candidate Earl Funk says the city has been clear when it comes to land acquisitions like the downtown property purchases.

“This is a long-term strategy going back approximately 25 years to acquire properties in the downtown, in order to hold properties for future use,” he said, adding that the properties can be used for parking, green space or to consolidate two or more properties for a larger commercial or mixed use development.

“Until the properties are needed for development they are leased at fair market value, and these properties can be sold at market value anytime. This gives the city a great deal of flexibility, and when a project like the credit union is announced we can jump into action and accommodate a large commercial expansion in our downtown.”

Other deals prompt concern from Funk.

“When we talk about land deals like the golf course bailout we can do much better,” said Funk, referring to council’s decision last December to pay the golf course $500,000 to take ownership of golf course land, while entering a long-term lease with the club.

“We are locked into a long-term lease for $1 dollar per year. We will never gain control of the land as long as the golf course is operational, and we can’t develop or sell at any time if the opportunity arises.”

Mayoral candidate John Fehr says he is satisfied with the way the city does land purchases.

“Our policy is that we do not discuss land deals until we have made the decision to purchase them,” said Fehr, who added that he believes this policy has served the city well for decades.

“I would say as a city we try hard to communicate well but we always need to strive for better communication on any issues, not just those related to property investments.”

Council candidates address question

Council candidate Cyndy Friesen says she is satisfied with the city’s approach to land acquisitions, also citing the provisions of the Manitoba Municipal Act.

“As a member of the HSD school board for 12 years, the board has purchased numerous parcels of land and discussions have also taken place in closed meetings and so I understand the rationale for keeping these discussions confidential,” she said.

“I believe that the people who have elected you have placed their trust in you to make informed decisions with the best interest of the community as a whole in mind.”

Incumbent Michael Zwaagstra notes that the city sets aside money every year to purchase land that may be in the long-term strategic interest of the city.

“I support land purchases that fit within the city’s long-term plan, are purchased at fair market value, and come with no strings attached,” he said.

“One land purchase that did not meet any of these criteria was the decision of council to purchase 40 acres of land from the Steinbach Fly-In Golf Club. This land purchase was simply a backroom way of giving the golf course the $500,000 grant they had asked for in the previous year. In addition, the terms of the lease agreement state that the golf course pays only $1 per year for the next 64 years and retains full control over the land.

In other words, the city gave the golf course $500,000 to bail them out of their financial predicament. While this obviously benefited the golf course, I do not believe this land purchase was in the strategic interest of the city.”

Zwaagstra says if re-elected, he will continue to oppose any attempt to use land purchases as a way of bailing out private organizations.

Candidate Jake Hiebert responded by focussing on the subject of annexation.

“Typically annexation occurs when a city or municipality is expecting future growth. Land from a neighboring municipality is identified to accommodate that expected growth. Having said this, one needs to initially examine the five, ten and twenty-five year plans of the city to determine if these plans remain valid and sustainable prior to moving in a desired direction. The importance of any land acquisition of course is the availability of land for future commercial, industrial, manufacturing and residential expansion.”

Hiebert said he supports the recent efforts to annex land from the RM of Hanover.

“I support acquisition of land and thus in my opinion this past acquisition appears to be a huge benefit to Steinbach. However, prior to any further acquisition, council needs to stand back and assess the anticipated financial impact, now and in the future, to the city and ultimately to the taxpayer of this recent acquisition,” he said.

“I believe that council can always improve the way in which details and rationale are communicated…I also understand why council might hesitate to publicize all details prior to the various government approvals being reached and a final deal is etched. To the extent possible, council needs to be transparent and honest in all areas remembering who it is they serve.”

Candidate Damian Penner says recent land acquisitions have focused on two separate areas: the 40 acre acquisition from the golf course, and land in the downtown area.

“I stand firm that the purchase of the land from the golf course can only be considered one of two things: a bailout or an investment that requires the golf course to fail before it can be of use to the city,” he said.

“This is not how a city should manage taxpayer funds, as taxpayer funds should never be used as a wager against a pillar of our community, waiting for it to fail to be able to take full advantage of the land acquired.”

Penner wonders what vision the city has for land it continues to accumulate in and around the T.G. Smith Centre.

“We need to make sure moving forward we elect a council that is not afraid to put their plans for city investments into the public eye available for scrutiny. As councillors we are elected to be the managers of the funds acquired by the city, and have to be held accountable to the citizens on every purchase the city makes.”

Candidate Mitesh Kumar notes that residents are concerned about recent land acquisition deals, especially the city’s deal with the golf course.

“Throughout my door knocking campaign, I am being asked rationale about these deals and if I would support any future such deals,” he said.

“This clearly proves that residents don’t have confidence in current council on this issue. Council have failed to provide proper justification and clear all doubts.”

Kumar says he promises to review all accessible files and issue a white paper regarding deals. He adds that council should avoid being seen as a business like entity.

“While thinking ahead for future is good, we must never forget public service and helping residents with current challenges is equally important. People need basic transport service, seniors need better care, there is problem with housing and we even have homelessness,” he said,

“I will voice to cut down substantially on land acquisition deals, not backed with clear cut current or future value for city. I would rather voice to use such funds to solve some of current challenges.”

Candidate Adam Crookes says from the outside looking in that it seems the process for handling land acquisitions needs to be updated.

“It seems like the council has free rein to buy any house they deem possibly suitable for future projects. I can appreciate that they try to save the taxpayers money by buying houses under the $300,000 price range so they don’t have to disclose the deal, which alleviates getting into a bidding war, but at some point we’re competing with the developers that we should be trying to work with.”

Crookes wants to know why $300,000 is budgeted for land purchases but three or four houses a year have been purchased in recent years.

“Since 2016 we’ve had a budget of $900,000, and yet they have chosen to spend $1.9 million on an area that we know won’t be suitable for the original plan,” he said.

“We have to be proactive and bring some of these practices up to the 21st century standards and be more open with the taxpayers of this city as to what the long-term plan looks like.”

Candidate Alan Wiebe notes the city acquires land as identified in its community plan and sustainable growth strategy.

“The problem with the city’s approach to land acquisitions is that people in Steinbach only find out that land has been acquired after a deal has already been made,” Wiebe said.

“People in Steinbach should be better informed on how, why, when, and where land is acquired. Policies for land acquisitions should involve public engagement.”

He says people in Steinbach expect a stronger voice on local decisions.

“The public should have an opportunity to determine the validity of land acquisition proposals as they pertain to the strategic goals identified in City of Steinbach planning documents,” Wiebe said.

“The lack of public awareness on land acquisition policies has undermined people’s confidence in local government.”

Wiebe says an independent investigation into the Steinbach Fly-In Golf Club land purchase and long-term lease agreement should be undertaken.

“The purpose of an investigation should be to determine if the deal was made in the public interest, as well as to inform a final report on policy recommendations for improving land acquisition policies at City of Steinbach,” he said.

Incumbent Susan Penner says that, overall, she is happy with the city’s approach to land acquisition, which are typically long-term strategic decisions that span numerous council terms.

“These decisions need to be done in closed door to prevent private parties from trying to manipulate the purchase price or the circumstances around the land deal,” she said.

However, she notes a “land deal” that has received considerable attention is the golf course land deal, which she did not support.

“It should not have been categorized as a land deal to begin with, as the city does not control the land and is not collecting fair market value for use of the land. The decision by the majority of council to frame it as a land deal instead of a grant has hurt the integrity of both the land acquisition process and the grants process,” Penner said.

She notes that downtown land purchases are a part of a strategic vision begun 25 years ago. The city controls the properties and collects fair market value when they rent them out, she says, and can choose to sell them or keep them.

Penner says council could improve communication regarding land purchases and the rationale for these investments. She points out many residents are still under the impression that the city is purchasing downtown land for a new arena.

“However, the current council already agreed that the arena will not be built downtown after listening to the feedback of residents. Part of my platform in this election is that city council come up with a more specific vision for the city-owned downtown properties so residents can understand the key role this land will play going forward,” she said.

Candidate Bill Hiebert says from what he understands most of the property purchases are happening in the core area of the Centennial Arena, with the intention of having land for a new arena or recreation centre.

“My opinion is that the new arena does not belong downtown,” Hiebert said, arguing that downtown parking will be a problem.

“I also feel a need for greater transparency when there is a plan for land acquisitions, not only declaring the purchase, which we do now, but also stating the intentions for said land,” he said.

Incumbent Jac Siemens says that land acquisitions, by provincial law, is one of three areas that are internal discussions only and not open to the public. The other two are legal and labor discussions.

The city’s long-term vision as it looks at the various needs requiring land use like lagoons, landfill, green spaces, industrial parks or future roadways all require land purchases, he notes.

“These discussions need to stay behind closed doors as the city might not be able to purchase them for fair market value or might not be able to ensure land use studies can be completed in a timely fashion,” he said.

“What the city can do better is to provide more reasoning and long-term vision for those land purchases when it communicates the purchase to the general public.”