 Top News - March 26, 2008 |
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| North West prepays $5.5 million in taxes |
By Ryan Tumilty
Staff Writer
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North West Upgrading became the second of Sturgeon County’s proposed upgrading companies to pay their taxes up front with an offer of just over $5.5 million.
Sturgeon County councillors approved the deal yesterday that will see the company pay $5,588,000 next year. That total will then be deducted from the company’s property tax bills over a five-year period.
The agreement is similar to one signed with the Fort Hills Project, who will pay $12.7 million, credited over 10 years.
The agreement with North West is contingent on the county completing the planned construction and improvements on Township Road 570 and Opal Road.
Those roads are not directly adjacent to North West’s site, but the company has agreed to pay the funds up front so those roads can be upgraded, which are expected to relieve strain on Highway 643 and allow residents and other drivers to bypass the heartland.
County Mayor Don Rigney said this agreement is particularly impressive because North West is paying upfront to upgrade roads they are not connected to.
Rigney said considering North West bought what they believed to be a fully serviced site, paying upfront for service is a generous move.
"We have been planning for this for a long time and the original idea was that we had enough services in place for one upgrader to go forward," he said.
Rigney said Northwest could have gone ahead without serious upgrades, so the offer is particularly generous.
"This is quite an indication of the good relationships we have developed and the good corporate citizen North West is being."
Doug Bertsch, vice-president of regulatory affairs with North West, said they understand what the county is trying to do.
"The site is well serviced with existing approaches, but we understand the county’s desire to improve specific roadways and give the travelling public a bypass," he said.
North West was initially hesitant, but Bertsch said inking the deal now makes sense for the company because the county is just now starting to improve the roadways.
"The timing of this agreement makes sense now. Any agreement prior to this would have been prior to the need," he said.
Under the conditions of the agreement, the county will receive the lump sum payment in March 2009.
The county will begin crediting North West against their property taxes when the plant is completed and starts operation, which is expected to happen in early 2011.
If the plant isn’t up and running by 2013, the company would lose their first year of credit in 2014. If the project never gets up and running the county won’t pay back any of the money. |
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