DK Consulting, the firm leasing the Tawatinaw Ski Hill, is back to paying taxes and the rent it owes to Westlock County and it’s about time.
County council reversed a motion last Thursday that had allowed DK to withhold paying any taxes or rent since the end of June.
It was the right decision.
Only true non-profit societies or organizations that provide essential services should be eligible for tax breaks.
Why should a private business be exempt?
It was around a year ago that Westlock County and DK Consulting inked a three-year $2.2 million lease/sale agreement for the hill. It was no secret that Tawatinaw has and will continue to lose money — municipal recreation facilities aren’t noted revenue generators.
Throw in the fact that we’re talking about a ski hill in the middle of flatland Alberta that is normally only open on weekends for only a few months of the year so long as it’s not too cold … suffice to say that the only way anyone will ever make money at Tawatinaw is if they print it.
But we weren’t in favour of the lease/sale agreement that was supposed to see DK pay $18,000 yearly in rent. And we also weren’t keen on the fact that for the life of the deal the county is liable for 100 per cent of the chalet costs and 50 per cent of any major works required, which over the last year and a bit is in the six figure range.
Ultimately we felt the facility was undervalued by about $2.6 million and that municipal rec facilities shouldn’t be sold.
But that’s all water the bridge now.
The question going forward is how to keep the hill running with DK because no one was lining up with briefcases full of money to buy Tawatinaw last year and no one ever will.
No matter what happens from here on out it’s a lose-lose scenario for the county. If the lease falls through, they’re back to square one managing the site. And if a new lease is signed that sees the $18K figure lowered, well that’s just less money coming in to offset the hard costs the county still has to shoulder.
Ah Tawatinaw, the gift that keeps on giving.
