Nicolle Hodges | [email protected]
Hostelling International (HI) continues its push to be exempt from paying property taxes in Jasper.
It was a compelling presentation that instigated much consideration but no immediate decision from the municipal council as to the next steps.
In Alberta, HI hostels are specifically named in the Municipal Government Act as being exempt from local taxation unless the council passes a bylaw that says otherwise.
In Jasper, council passed such a bylaw last summer despite efforts from HI to make a deal. That bylaw takes one year to come into effect.
“We are asking that council reconsider and rescind the current bylaw and we come to an agreement with the town,” said the regional CEO of HI, Alistair McLean at a council meeting Tuesday.
McLean presented council with a summary of the hostel’s contributions to Jasper, adding to $131,920.
“In 2018, we donated $5,000 toward the design and development of the Mountain Bike Training Park on Connaught Drive, and have a similar commitment for 2020,” said McLean.
“We are one of two sites in town that offers electric vehicle car charges for our guests and the public to use.”
Installation costs for these two chargers was $13,408.
McLean also committed to annual payments to the municipality of $35,000, $38,000, $40,000 over the next three years, increasing with inflation after that.
The primary focus, however, was Jasper’s need for temporary, year-round housing solutions for seasonal staff.
The average daily rate for HI Jasper’s dorm bed is $45 per night, but HI committed to setting aside two dorms (eight beds) for local workers rented out at a discounted rate of $12.50 per night or $375 per month, per bed, for the first year - an estimated annual loss of revenue of $71,175.
Councillor Paul Butler asked: “Why would you forfeit $71,000 a year?”
“It’s part of our mission and values of working with communities,” said McLean.
“There are a lot of small businesses in town that don’t have the capability of having a number of their own beds used for staff accommodation and this is where we’re able to provide that.”
“If this is something that doesn’t go forward, we’ll have to look at how we deal with this and the price will likely have to be higher for those rooms.”
Are discounted beds for local workers another aspect of doing business or is it a service worthy of exception?
Councillor Bert Journault thinks it’s the latter.
“When I think about reasons why you would be exempt from the tax, I think of the backcountry where there are limited available services,” he said.
“I understand that you have the most comfortable beds in town. [HI] is more like a hotel.”
Councillor Helen Kelleher-Empey agreed.
She said: “I pass your property daily and see expensive cars. It’s not just youth staying there. You are a commercial property within the town and should pay the same taxes as everybody else.”
Mayor Richard Ireland previously estimated that if the hostel was fully taxed it would be paying about $90,000 a year.
He said: “Our issue here is consistency and equity with taxpayers in the community. Do we get more value from you offering those rooms than we would from the tax money?”
There were five people in the gallery during the discussion, all of whom were assumed by Mayor Ireland to be involved with the Jasper Downtown Hostel.
When asked if they would like to add anything, one woman replied: “I trust that councillors will do the right thing.”
