Business boon to Kamloops band

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A decision by the Kamloops Indian Band to allow the Crown to offer 99-year leases on portions of its reserve lands will lead to the largest multi-use development of Canadian Native lands by private interests.

The announcement was made by Manny Jules, chief of the Kamloops Indian Band.

The chief was joined at a news conference in Vancouver by Clifford Branchflower, mayor of Kamloops, and the principals of two development companies, Wilder Ventures Ltd. of Vancouver and Sun Rivers Development Corp. of Kelowna, B.C.

Land to be leased to the two companies totals 255 hectares. Planned projects include residential communities, shopping centres, an 18-hole golf course, hotel and, entertainment and recreational facilities, and various commercial and industrial activities. Cost of the development, to take place over the next 15 years, is estimated at $600 million.

Although there has been non-Native development of reserve lands in other areas, these have been single-use projects, usually on property owned by individual band members. In this innovative arrangement, individual owners returned their lands to the band, which (through a process outlined in the Indian Act as land designation) set aside the lands for leasing.

"What this means," said Jules, "is that while the band manages its land, the leasing agreement is supported by the authority of Her Majesty, the Queen.

"We expect this to set new standards for real estate development on Indian reserve lands across Canada," said the chief.

"Under the agreement, the band will function as the government, providing services and collecting property taxes. We will ensure the availability and maintenance of roads and services, we will adopt zoning and ensure sound land use controls and we have put in place important assurances for the lessees."

Among the assurances is that the property taxes will not exceed those of the City of Kamloops. Also in the agreement is the provision that there will be no lease adjustment until the end of the 99-year term.

Charles Dwights, president of Wilder Ventures Ltd., said the land involved is strategically located in one of the most important, rapidly growing markets in B.C.

"With the 99-year pre-paid leases and the assurances given by Chief Jules and the Kamloops Indian Band, we expect to attract highly desirable national and international tenants of the highest quality," said Dwights.

The 99-year lease fees paid by Wilder and Sun Rivers were established by Gordon Frampton, an appraiser selected by the band and the Department of Indian Affairs.

The sums paid are based on current market value and are comparable to what would have been pad for outright purchases on the lands, said Dwights.

In addition to the lease revenue of approximately $8 million, the Kamloops Indian Band anticipates $16 million a year in property taxes when the developments are complete. Tax revenues for federal and provincial governments are expected to total $17 million.

Fred Camille, a band councillor, sees development agreements of this nature leading to widespread economic and social changes in Canada.

"With initiatives like this," said Camille, " we can reduce dependency on federal social assistance substantially. We can create jobs and end situations that lead to illness and social distress.

"Ultimately, First Nations can be more than economically self-sufficient. Not only can we save governments millions of dollars, we can generate revenue for them and for surrounding communities," he said.

Construction is expected to begin in early summer on the Wilder Venture project, called Shuswap Landing. Sun Rivers, which will develop the golf course and residential community of up to 2,000 units, said the golf course construction could begin this fall.

A timetable for construction is expected to be determined within the next few months.