City Hall sets out guidelines for plan to annex New Gold, process could take up to two years

NEWS/ CITY COUNCIL — It could take six months to two years to complete a Kamloops boundary extension that would take the New Gold underground mine property into the City.

A staff report to council Tuesday will set out a framework for proceeding with an application to annex the mine, a direction council set during its budget discussions this year.

The goal is to broaden the heavy industry tax base in the city, spread the tax burden around, and lower the hit to residential homeowners that would otherwise happen if heavy industry were to get further tax breaks.

Industry has been lobbying for years for lower taxation rates.

The report says council must seek input from property owners in the area affected and from the Thompson-Nciola Regional District, Agricultural Land Commission and First Nations.

A proposed tax rate would then have to be set. Voters will have a say in the boundary extension, either through a referendum or the alternative approval process (counter-petition). Final approval is up to the provincial government.

Neither the TNRD nor New Gold has so far commented on the application.

The report says New Gold is closer to the city’s centre than two existing heavy industries that are within city limits.

“The company and its employees receive benefits and services because of New Gold’s proximity to Kamloops that the mine would otherwise need to provide if it were located in a remote area,” the report says.

“The City is seeking a financial contribution from New Gold as a means to compensate the municipality for these services.”

Annexing New Gold would also allow for diversification of major industry taxpayers, reducing dependency on current ratepayers, it says.

“In addition, including New Gold’s tax revenues provides the City with the ability to reduce the tax rate for major industry, bringing it closer to the provincial average without impacting other tax rate classes, such as residents.”