The News has learned that provincial money available to cities for post-COVID economic recovery has been made contingent on the municipality's ability to cut red tape for business.--NEWS FILE PHOTO
cgallant@medicinehatnews.com@CollinGallant
Provincial construction grants meant to lessen the pandemic economic slowdown will be contingent on cities proving they’re on board with the UCP’s goal of cutting regulations on businesses, the News has learned.
According to documents obtained by the News, qualifications for the $500-million capital construction fund also spell out a need to prove that new buildings or other projects won’t add operating expense that will affect local tax rates.
That’s left some municipal officials awaiting clarification months after they submitted individual lists of projects to the Ministry of Municipal Affairs in April.
“We were hoping it would be simple,” said Medicine Hat Mayor Ted Clugston on Tuesday when presented with information about the grant package that some cities, towns and counties received in late July.
Clugston predicted Medicine Hat’s portion could be $7.5 million, but administrators were now shortlisting a list of 10 potential projects to three or four that would most likely qualify.
He felt Medicine Hat would be well-positioned to make the case it’s been business friendly on the regulation front. He cited a new electronic permit system that was implemented last spring and said other measures are in the works.
However, capital projects often have an effect on operating budgets, he added.
“If we build a rec centre there are costs to operate it. If we build a trail, we have to clear it. So, what does that all mean,” he asked.
Ministry officials did not respond to interview requests on Tuesday, the same day as a noon-hour cabinet shuffle saw previous minister Kaycee Madu move to Justice, while Grand Prairie MLA Tracy Allard took over the local government portfolio.
The Municipal Stimulus Grant was announced in April as a $500-million fund to help cities, towns and counties move ahead with “shovel-ready projects.” It was billed as a way help even out the employment shock of lower economic activity this spring.
This month municipalities began receiving outlines and potential allotments for the fund. It states cities that successfully apply by an October deadline, must by February complete a Red Tape Report of their operations before the majority of funds are released.
As well, a follow-up report would be needed in 2022.
The United Conservatives has made so-called “Red Tape Reduction” a key focus of their economic plan since the 2019 election, even creating an associate minister’s position in cabinet.
Taber-Warner MLA Grant Hunter was named to the post in May 2019, and measures so far have crossed into other portfolios.
Madu, in time as Municipal Affairs minister, made no secret he felt cities should be doing more to lower their tax rates, provide incentives to court new business development and lower requirements.
The “Blue Ribbon Panel” report, which guided the UCP’s first two budgets, stated that municipalities need to do more to arrest operating costs as way to reduce overall tax burden.
According to grant program qualification, applicable projects would mimic those that qualify under the long-standing Municipal Sustainability Initiative infrastructure fund.
Projects must be started in the 2021 or 2022 construction season, not including routine maintenance or studies.
Cities would also not be allowed to use their own workers to perform the work, such as paving or general renovations, unless the private sector was unable to pick up the work.
Clugston felt four potential projects could be presented to a closed session of city council in early September and the city would meet the deadlines.
