Whitehorse Daily Star

Image title

Photo by Whitehorse Star

Shaunagh Stikeman, Fay Branigan and Laura Beattie

More dissent heard about city’s Hillcrest plans

City council members continued to hear opposition to a proposed local improvement charge (LIC) for property owners in Hillcrest at its meeting Monday night.

By Stephanie Waddell on May 9, 2017

City council members continued to hear opposition to a proposed local improvement charge (LIC) for property owners in Hillcrest at its meeting Monday night.

A number of residents from the neighbourhood have already made presentations to the city, bringing forward concerns with the charge property owners would be faced with if planned improvements to the neighbourhood go ahead.

Under the city’s LIC policy, benefiting property owners pay for a portion of the surface work planned for an area.

The proposed LIC bylaw for the Hillcrest work provides for a 20-year amortization period.

That makes annual payments as low as $172.86 (condo units) and as high as $17,558.66 (a Yukon government property) based on an estimated interest rate of 6.25 per cent. The interest rate is set when the LIC is put in effect.

When an LIC is proposed, property owners are given the chance to vote on it. If more than 50 per cent vote against the charge, the project doesn’t proceed.

Last night marked the public hearing on the LIC bylaw. Property owners have until 4:30 p.m. today to get their ballots in to the city.

A total of eight property owners addressed the city on the matter, many arguing against the LIC as being a significant financial burden to property owners.

Fay Branigan, who owns the Cliffside Country Store & Greenhouse, told council when she purchased her business property last year, she was informed of the potential LIC.

She was not; however, made aware that the charge for her property would be based on two sides of the property, which front roads that are set to be repaired.

That means the charge for her property amounts to a total of more than $63,000. Based on a 20-year amortization, it amounts to $5,642.18 each year.

The work in the neighbourhood will also mean access to her property is limited during the construction season.

It’s about the same time of year – April to July – that is extremely important to her business.

While Cliffside is open throughout the entire year, Branigan said, she relies on the sales from those busier four months.

If access is limited, she said, “I will fail.”

She went on to note that owners of the steelox duplexes are exempt from having recirculation pumps installed as other homeowners in the neighbourhood will be required to do as part of the improvements.

Branigan asked that this become an option for all property owners who are faced with the LIC.

Those who want the pumps could have them installed when they want and can afford to, she suggested, noting this would help bring the costs down.

Laura Beattie, who is among those steelox owners, noted that though she may have to pay the LIC price, she and other steelox owners will not get the full benefits.

She also argued it feels there’s “some agenda going on” to get Hillcrest to look like other parts of the city.

“I like the feel of Hillcrest,” Beattie said of the current neighbourhood, noting the area is unique compared to other parts of the city.

She also argued there’s been a feeling throughout the process that the city will move ahead with the plans regardless.

Others also spoke to the planning process, noting that when the city was doing consultations with the community, there was no discussion around what kind of costs the property owners would face with the improvements.

Hillcrest Community Association president Shaunagh Stikeman, who made an earlier presentation on the impacts of the LIC to residents, presented council with a written submission from a resident who wasn’t able to make the meeting.

The resident noted that with full-time daycare for two kids and other bills each month, it would be difficult to add the cost of the LIC into their expenses.

The situation may force the family to sell their home, council was told.

“I know we’re not the only ones,” it was stated in the letter.

Former community association president Jim Gilpin didn’t speak out directly against the LIC.

However, he asked that if property owners reject the plan or even if there’s a significant number of property owners who oppose it, council consider pausing for a one-year period.

That way, it could look for ways to change the plans and see if there’s any way to make it more acceptable to residents.

If less than 40 per cent reject the LIC, Gilpin said, it would suggest that the proposal should go ahead.

If that’s the case, he said, council should reflect the view of Hillcrest property owners in their vote and move ahead with it.

Comments (21)

Up 9 Down 2

joe on May 15, 2017 at 3:31 pm

What a messed up City administration. Putting our kids in debt for unnecessary new buildings worth multi millions of dollars and unable to do the necessary repairs to local essential infrastructure. So here"s this City's plan: spend millions on legacy buildings then raise taxes to all individuals and small businesses to pay for it forever and, because they can't afford to maintain existing infrastructure, they tax through an LIC, residents who live in the affected areas in need of repairs. What's wrong with this City?

Up 18 Down 6

Don't remember being asked on May 13, 2017 at 5:57 am

20 years ago (or so) when I was a resident of Crestview, same issue. We needed new water, sewer upgrades that included sidewalks and pavement. We had to pay $1000.00 through our property taxes every year for 15 years. I don't ever remember the city asking us to vote on it. It was done and we're paying for it. Now Hillcrest gets to vote. All fine, that's democracy at work. When the big water and sewer mains start to break, don't whine to the city that you have no water or sewer in the middle of a cold snap. You should be last on the priority job list.It was your call.

Up 11 Down 3

Hugh Mungus on May 12, 2017 at 3:02 pm

@Disagree with B MGee
Sidewalks are considered 'fancy' now? Here I was thinking they were a safe place to walk without having to dodge cars. Ironically, the decision to delay this will only mean that the costs will go up when it has to happen in a few years.

Up 4 Down 2

I called the City and they stated the vote was not coming out until on May 12, 2017 at 1:09 pm

next week. Why did the City not tell the truth to me? 55% voted no.

Up 3 Down 1

So the City of Whitehorse is not going to release on May 12, 2017 at 12:43 pm

the votes today on what the Hillcrest residents result were. Not sure, some time next week.

Up 3 Down 2

City Council, Mayor and residents of Whitehorse on May 12, 2017 at 12:40 pm

LIC is not what you thinks it is. Anie dig into the facts and look at the evidence, you will not be happy!

Up 5 Down 1

Anie on May 11, 2017 at 4:54 pm

General opinion - you asked what happens if you buy a house. My experience has been that information on taxes, including details of any LIC, such as annual and outstanding amount and duration, is made available to anyone interested in buying. At least that's what's always happened when I've bought or sold.

Up 13 Down 6

Anie on May 11, 2017 at 4:50 pm

I've lived here over 40 years Mr. Carter, and LIC's have been used for water, sewer and road replacements ("infrastructure") as long as I've been here. Yes, we all know that you've done everything and had every high profile job. Heaven knows you've told us often enough. Enough already. Other people have opinions to offer, too.

Up 1 Down 2

If people don't vote on May 11, 2017 at 4:48 pm

it's yes to support the development.That is a fact.

Up 7 Down 3

resident on May 11, 2017 at 4:38 pm

I don't know the owners of Cliffside, but it is totally unfair that they are having to pay $63,000 because their lot happens to span between two streets. This is total crap! I can imagine how they must feel. Fight it!

Up 4 Down 13

Anie who on May 11, 2017 at 11:09 am

Your statement, shows, you don't understand, how LIC actual supposed to work in the first place. Reserve funds, are set up to replace past due infrastructure, just like the garage the City wants to build.
This project cost $ 17 million to construct. The City and YTG only asked for $15 million from the Federal Government.
The City and YTG is unfairly treating the residents of Hillcrest.
Why did the City and YTG not ask the Federal Government for the full $17 million for this project?
The other $2 million from the Feds are going into other projects on the Mayor and some Councillors list, like the fossil fuel killing buses.
LIC are not usually used for water, sewage, side walks, but parks, play grounds, etc.
These types of protects are premier infrastructure essential services an expense out of reserve or general capital items.
Anie who! are you a Councillor. Anie who, I have been a CAO and Director of Municipal Units in the Yukon and worked elsewhere in Canada on municipal services from Halifax, to the Yukon. In the Yukon a lot things are not clear on there prepared usage, so elected officials can do what they want. If the Residents have to pay for infrastructure up grades, then they should not be.
This is the wrong use of this policy/byelaw. Wilf Carter

Up 11 Down 3

CJ on May 10, 2017 at 7:02 pm

Those interest rates do seem high, don't they. If payments are late do the same penalties apply as taxes?

That voting system needs to change, every vote for LIC it takes people by surprise, as it doesn't resemble any other such voting exercise. But with all the other issues that come up it tends to get forgotten about and it sure benefits the city. I think it's immoral for any politician to defend that contrived process -- elected representatives should be upholding fair voting, not supporting such sly workarounds.

Many neighbourhoods were improved before LIC came in, so it's not really the case that it's always been the practice. I think that's historically part of the resistance. And also the city does seem to have quite a lavish hand at other people's expense, which is certainly something people complain about regularly with other issues.

Up 3 Down 6

Resident on May 10, 2017 at 5:53 pm

Did the LIC law change recently? Last I heard, voters who do not vote are marked as voting no.

Up 7 Down 1

General question about local improvement charges on May 10, 2017 at 5:18 pm

So, if I buy a house, are the obligations for Local Improvement Charges specified in the agreement, or are they part of a tax bill 'surprise' for the new owner?

Up 9 Down 4

Johnson on May 10, 2017 at 4:36 pm

The point is the LIC process is flawed and deeply unfair. Some residents will have to pay $25,000 out of pocket, or at inflated interest rates while others will pay as little as $2,000 and some (about 1/3 of residents) will pay, without getting the service upgrade.

The City needs to grow up and realize the feds won't pay for everything forever, and raise city taxes to a reasonable standard.
It's not about getting something for free, it's about process and fairness.

Up 12 Down 3

Anie on May 10, 2017 at 3:39 pm

Sorry "most people don't understand..." but your argument is not supported by history. Last time the City re-did the water lines in Crestview, residents had to pay the full cost of the trunk line as part of the LIC because it was not built to adequate standard in the first place. Hillcrest is not unique

Up 14 Down 18

Most people don't understand the situation on May 10, 2017 at 11:07 am

When Hillcrest was built, the transportation was not built up to standard like other parts of the City. Do they have side walks, curb and goiter for example? Are street wide enough? None of the above! If you live in Riverdale you have full service streets.
The people living in this area, has paid full taxes over the years like ever one else in the City, but has not received the full service. They have already paid for the services through their taxes.
If the City charges them improvement cost they could be open to law suit, again.

Up 11 Down 13

Disagree with B MGee on May 9, 2017 at 7:08 pm

I think you are missing the main point. Most people are willing to have the water and sewer upgraded but don't want a bunch of fancy sidewalks etc. that will greatly change the neighbourhood. The real issue is that the voting process for LIC's is unfair - non-voters are automatically counted as voting "yes" (in favour of the LIC). This means it is almost impossible for residents to vote No. The City could have changed the way the vote is conducted as this is not the first time they have heard these complaints. I also think that it is highway robbery for the City to charge an interest rate of 6.5% on these large LIC amounts - you can be very very sure that the City doesn't pay that much to borrow money, which means they are making money off the fact that residents may not be able to pay the total LIC at once.

Up 15 Down 3

Martin on May 9, 2017 at 7:06 pm

I agree with Bud. I still remember when some members of the community opposed the opening of the access from Thompson Rd and King Tony P. supported it (thanks to the Karma he's still lost the election). We have spent more fuel running two buses' routes and that was needless. I didn't see the YCS having an opinion in that waste of energy. Yep; there are huge whiners that can never be pleased and the taxpayers are on the hook for the increase maintenance of roads and city services. Enough!

Up 23 Down 6

Jack E on May 9, 2017 at 3:45 pm

I bet they would support the improvements if they weren't required to pay for a portion of the cost. Guess what - the affected property owners should pay those costs since their property values will increase and their services would be upgraded. In the end, most Yukoners pay little to nothing to live like kings off the taxes of other Canadians - but we howl like hell if we actually have to pay anything. I have lived here for my entire life and you see everywhere - a few years ago the Black Street residents moaned and cried about similar fees and tried to assert that their rundown, druggy neighbourhood was unique as something called "old town" - what a joke. Black Street looks great now as it gets renewed with new housing, including multi-family housing, and paved streets with sidewalks.

Up 42 Down 10

Bud McGee on May 9, 2017 at 3:11 pm

Jim Gilpin, et. al. and his anti-development allies pushed for the local improvement project all along. Many long hours were spent by City staff holding design meetings, open houses, and other stakeholder engagement. There was ample opportunity to provide input, and many changes were made to reflect some of the feedback. The process being used in Hillcrest is no different than Takhini North. Life isn't a free ride. You need to pay for improvements. Why should Hillcrest be any different than all the other local improvement projects? The people up there are huge whiners that can never be pleased.

Add your comments or reply via Twitter @whitehorsestar

In order to encourage thoughtful and responsible discussion, website comments will not be visible until a moderator approves them. Please add comments judiciously and refrain from maligning any individual or institution. Read about our user comment and privacy policies.

Your name and email address are required before your comment is posted. Otherwise, your comment will not be posted.