By Brad Herron
The Eagle
Cochrane Mayor Truper McBride has ordered an internal investigation of the town’s subdivision process.
The mayor said Aug. 21 he has “reason to believe now that the amount of money that we have been receiving has not been the amount of money the people of Cochrane have been entitled to when doing subdivision.”
He believes taxpayers had been shorted a “very significant amount of money.”
During the subdivision of a site, the Municipal Government Act states the municipality is due 10 per cent of the land in municipal reserve or an equivalent in cash. The town’s policy was to use a developer’s own appraised value of the property during the subdivision. That has now changed.
“We’ve ordered reforms put in place effective immediately, and from here on forward an independent appraisal of all land will be done to determine the actual market value, and it will be carried out at the developer’s cost whenever cash-in-lieu appears on the table,” McBride said.
For years, the planning and engineering department at the town had been providing the subdivision authority, formerly the Cochrane Planning Commission and now council, incorrect information, McBride said.
“This was a legal loophole that developers have been using to exploit our planning system in Cochrane,” the mayor said.
Early indications from his investigation reveal that Springwood Developments, which holds an option on the 45-acre former-Domtar site, “knew quite well they were getting one incredible deal” during a subdivision application April 28.
Council approved a subdivision to separate the site into two parcels, receiving $79,042 and an option to lease, and potentially buy, a one-acre parcel on the northwest corner of the site. The vote passed 6-1, with the mayor in opposition.
“Springwood has taken the town for a ride here in the subdivision agreement we made with them and the taxpayers here have definitely gotten the raw end of the stick. We were entitled to more cash-in-lieu, far more cash-in-lieu than they provided us,” McBride said.
Bill Butler, president of Springwood Developments, declined to comment Aug. 26.
In the subdivision application documents, Springwood assessed the market value “as is” at $520,000, or $11,579 per acre, but the estimated serviced land value is $1 million an acre for small parcels, and $500,000 per acre for large parcels.
Springwood estimated the “clean-up costs” for the site, where Domtar treated railway ties with creosote from 1963 to 1987, would range between $28.3 million and $31.8 million.
Because he has “had enough,” McBride plans to ask council to investigate the “Domtar affair.”
He said a possibility is to place the site, which sits between Griffin Road and Railway Street, under direct control which, if accepted by councillors, would give council final approval on the project, including construction details.
“This is to make sure what is going on at that site, from now until completion of the development and even into the future as that site looks at redevelopment, is in the best interest of the people of Cochrane, because seemingly, according to this investigation, it hasn’t been up until now,” McBride said.
The mayor said a member of town administration has talked to Butler about the possible change. McBride said early indications from Butler are new policies will not work for the developer. This leads the mayor to further question what happening.
“What’s really going on with this development if Mr. Butler is afraid of direct control, afraid of council being the approving authority?” McBride said.