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Whistler's Mayor surprised at large legal bill for asphalt case

BC Assessment recommending reduction in values at some homes in Cheakamus
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Bottom line Tim Koshul says the asphalt plant is not just a Cheakamus Crossing problem, but an issue for all of Whistler. Photo BY alison taylor

Whistler Mayor Nancy Wilhelm-Morden said she was surprised to learn that it cost the municipality almost $600,000 to date in the legal challenge to move the asphalt plant at the Cheakamus Crossing neighbourhood.

She was pleased, however, to have the number made public this week so taxpayers understand the costs associated with the challenge.

"I was surprised by the amount of money spent on legal fees," she said the day after the costs were released. "It was a very large number. But it's been a topic that's been under vociferous discussion for quite some time so, at the end of the day, I wasn't shocked."

As far as she knows there is enough money set aside in the municipal budget to cover the costs.

Council has not yet made a decision how to deal with the B.C. Supreme Court ruling handed down at the end of January, which allows Whistler Aggregates to continue operating beside the Olympic legacy neighbourhood.

"Certainly the cost of an appeal and the length of time it would take to get in front of an appellate court and the chances of success, as well as how much as been spent to date, are all factors that are taken into account in deciding whether we would go forward with an appeal or not," said the mayor.

If it plans to appeal the judgment, council must make that decision before Mar. 1 because it only has 30 days to file a notice of appeal. Wilhelm-Morden does not expect that decision to be made at the upcoming council meeting on Tuesday, Feb. 21.

Meanwhile, Pique has learned that BC Assessment is recommending to the Property Assessment Review Panel that it reduce the assessed value of some homes at Cheakamus Crossing, in some cases by as much as $20,000.

Come property-tax time that means those homeowners could be footing a smaller share of the overall municipal tax bill, which could have implications for other Whistler homeowners.

The RMOW revealed the asphalt challenge costs in a press release this week, which stated that between 2009 and January 2012 the municipality spent $574,750 on costs associated with the asphalt plant dispute, including legal costs, the report on the relocation options as well as work done to implement the air quality monitoring system. About 78 per cent was spent on legal costs.

In addition, the municipality must also pay roughly $16,000 on account of Whistler Aggregates' costs based on a tariff schedule.

The Mayor was not available for comment before press time Wednesday.

"I'm surprised it was that high," said Cheakamus resident Tim Koshul. "But we've blown more than that in the past on crazier stuff.

"Can you put a price on the quality of life?"

As for the reassessed values, Koshul said: "It's a shame the taxpayers of Whistler are suffering again."

He appealed his tax assessment the day B.C. Supreme Court judgment in favour of Whistler Aggregates came down in January allowing the plant to continue operating on the fringe of the neighbourhood.

Koshul said if taxpayers in Whistler are under the impression that the asphalt plant is a neighbourhood specific problem, they should think again. The plant's operations, which some Cheakamus residents say are affecting the quality of their lives, have not only cost taxpayers in the legal challenge, but, said Koshul, it's also impacting sales of the market lots in the neighbourhood, prolonging repayment of the municipal debt for the development in excess of $20 million. Now, it appears the plant could also impact the municipal tax roll, though BC Assessment explained its reassessments are based on sales in the area.

"This is a Whistler problem," said Koshul. "It's not just a Cheakamus problem."

Koshul was one of 19 homeowners at Cheakamus Crossing who submitted an appeal to BC Assessment to have the assessed value of his home lowered. His appeal was based solely on the judge's decision to allow the asphalt plant to continue its operations.

Before the review panel even heard his case, scheduled for February 23, staff at BC Assessment recommended his assessed value drop from $304,000 to $284,000. In fact, it recommended all homes in his complex, The Rise, drop by seven per cent.

"As a result of your appeal a review of your entire complex was undertaken by BC Assessment," wrote Deborah Francis, Deputy Assessor for BC Assessment in an email to Koshul. "BC Assessment will be making a recommendation to the Property Assessment Review Panel to reduce the 2012 assessed values in your complex by approximately (seven per cent)."

Another family that lives in The Heights learned their home was also reassessed from $366,000 to $344,000 — a drop of $22,000. The family hadn't even appealed its assessed value and simply called BC Assessment this week on another query and learned of the decrease.

The explanation given for Koshul's reduction was: "Upon review of your 2012 property assessment it was determined by staff at BC Assessment that your assessed value exceeded the Whistler Housing Authority (WHA) restricted sale prices in your complex during 2011."

The general manager of the WHA Marla Zucht was surprised by that explanation.

She said there have been just three sales at Cheakamus in 2011 since residents moved into the neighbourhood in the fall of 2010 and two of those three sold for the maximum price, while one sold for just a few thousand dollars under the top price.

"That (explanation from BC Assessment) does not justify the reduction," she said. "It puzzles me."

Zucht also said the reduction in assessed value likely would not affect the ultimate sale price because the units currently have been turning over as soon as they are on the WHA market.

"There's still a waitlist for these units," said Zucht.

No sales have occurred, however, since January's Supreme Court ruling.

Koshul still plans to attend his appeal panel hearing in Squamish next week. "I'm curious what they have to say," he said.

In the meantime council still has to decide how to proceed with the asphalt plant and whether or not it will appeal the B.C. Supreme Court decision.

At the last meeting Mayor Nancy Wilhelm-Morden said it was still reviewing the judgment and taking legal advice.

Council decided to release the costs associated with the asphalt challenge at the Tuesday Feb. 7 meeting, but it had yet to tally all the costs at that time. The following day staff said those costs would be released early this week. On Monday staff said the costs would be released on Tuesday morning. The costs were released five minutes before the Pique's deadline Wednesday.