Gravel lease finalized

A gravel extraction agreement is expected to bring in roughly $90,000 a year to the municipality.

A gravel extraction agreement between the municipality and Cantex-Okanagan Construction Ltd. is expected to bring in roughly $90,000 a year to the municipality.

The 20-year lease agreement is for a property adjacent to 16700 Prairie Valley Road and the Summerland Landfill.

The lease payments are $50,000 a year, plus property taxes.

In addition, a royalty of $1.25 per tonne will be charged.

For 30,000 tonnes a year, the royalty fee will be $37,500.

The terms of the lease will be reviewed every five years.

The money from the agreement will go to infrastructure improvements.

Mayor Janice Perrino said last year’s infrastructure maintenance costs came to $2.6 million.

Coun. Bruce Hallquist said the revenues from this agreement will help to offset the costs of replacing or upgrading Summerland’s aging infrastructure.

“I’m very supportive of these kinds of initiatives,” he said.

“I’m excited about the alternative revenue source,” said Coun. Martin Van Alphen.

Coun. Peter Waterman said the anticipated $90,000 a year is roughly the same as a 1.33 per cent tax increase.

While the agreement will bring in money for the municipality, Perrino said it will not result in a tax reduction for Summerlanders.

“This is a supplement to taxes,” she said. “It does not reduce taxes. It’s just a help.”

Summerland’s 2014 municipal budget was close to $11 million.

After the gravel has been extracted, the land will be rehabilitated for a secondary use.

The municipality will then have the option to lease or sell the land.

 

Just Posted

UPDATE: Darke Lake residents under evacuation alert

Fire crews battling wildfire in rural community west of Summerland

Regional district on hunt for manager of emergency services

The Regional District of Okanagan-Similkameen is looking for a new emergency services manager

Chance of showers may not be enough to rid Okanagan of smoke

Wind and chance of thunderstorms competing factors in this week’s forecast

Evacuation alert for Dark Lake Valley area

There are 21 properties are affected

$21.5 million medical pot plant for Princeton

A $21.5 million medical marijuana facility - expected to provide 95 jobs… Continue reading

Filmmaker captures the smoke that enveloped the Shuswap

Check out this video of the haze that blanketed Salmon Arm

Cool Creek fire near Princeton grows to 6,900 hectares

The Cool Creek fire is threatening recreational homes in high elevation north west of Cathedral

Columbia Shuswap directors allocates cash to secure rail trail funding

Money will help create trail network on former Armstrong to Sicamous corridor

Prime minister greeted by B.C. premier as cabinet retreat begins

PM Justin Trudeau and Premier John Horgan meet in advance of federal cabinet meetings in Nanaimo

Are your kids anxious about going back to school?

BC Children’s Hospital offers tips to help your children be mindful and reduce stress

New trial ordered for James Oler in B.C. child bride case

Meanwhile, appeal court dismisses Emily Blackmore’s appeal of guilty verdict

This trash heap in Vancouver could be yours for $3.9 million

Sitting atop 6,000 square feet, the home was built in 1912, later destroyed by fire

Team Canada’s next game postponed at Little League World Series

They’re back in action on Wednesday against Peurto Rico

Ex-Trump lawyer Cohen pleads guilty in hush-money scheme

Said he and Trump arranged payment to porn star Stormy Daniels and a former Playboy model to influence the election

Most Read