The Weyerhaeuser Situation...

If Weyerhaeuser leaves Kamloops, how would that impact the community? That, to me, is the fundamental question that underlines all the current talk about the possibility of reducing local taxes for this giant forest company.

Weyerhaeuser employs about 1000 people in Kamloops and pays about 5 million dollars in city taxes each year.

Local company managers approached council in January with their concerns that the taxes they pay in Kamloops are too high - according to studies, more than double the provincial average. They also asked us to consider giving them a 5 to 10 year tax break on the value of any improvements they make to their local facilities.

Council struck a committee to look at industrial taxation and that committee has been working. Weyerhaeuser recently also asked that their current tax bill be freezed.

I believe we must tread very carefully here - for one primary reason. Any reduction in Weyerhaeuser taxes would likely increase residential tax rates. We have a lot of homeowners in Kamloops who have a tough enough time, as it is, keeping up with rising costs of living. And I worry about people who would have no choice but to give up on their homes or downsize.

So, while it might be a good idea to have industrial taxation rates more in line with the provincial averages, I would like to create the time to thoroughly examine revenue generating opportunities and greater efficiencies within City operations so we don't have to unduly burden homeowners. Council has already endorsed a gradual reduction - I believe we need to work to prevent the reduction from becoming a one for one shift.

Within Weyerhaeuser, there seems to be intense competition among different mills and divisions for funding from the company. They would like the Council to help them with putting their best foot forward. Here's my thought, based on what I know right now:

I am currently leaning towards working to expedite a revitalization tax exemption for Weyerhaeuser that would see the community exempt the value of any improvements to their local operation from taxation for a period of 5 to 10 years. Weyerhaesuer would have to invest to get that exemption. So, it would be a show of goodwill from the company and the community.

I hope they will give great consideration to "green" technologies. There is concern in Kamloops about Weyerhaeuser's environmental impact.

The Mayor led a group to Quesnel  - where they provided such an exemption for their mill. I look forward to hearing what they found out.

The last thought I have on this issue today is that it is best to be prepared for any possibility. Weyerhaeuser may close down in Kamloops no matter we do. And we need to consider how we are going to help people transition to other productive lives if that happens.

 

Comments

[Jason Johnson]

Weyerhauser will not be the major player in Kamloops as it was. Kamloops, stop depending on one industry for tax revenue.

Diversification is the key.

City Leaders should work with the other stakeholders to position Kamloops as the place to live, to work, and to invest.

Kamloops needs to get its' house in order. Stop counting on Victoria or Ottawa to help out. This is our community, therefore, our responsibility to make Kamloops the desired place to be for manufacturing, service, and technology industries.