The City of Leduc has an agreement with Leduc County to share a portion of the taxes generated from developments on EIA properties to assist with compensation for the impacts of the Airport Vicinity Protection area. The agreement makes up a significant portion of the City of Leduc’s tax base. Without it, the City would be required to increase taxes by six percent, which would significantly and negatively impact residents.
The City of Leduc currently receives $2.7 million gross revenue from the agreement and provides from this an allocation of $280,000 to the County for municipal administrative services and fire protection to the EIA.
History of the EIA Tax Share Agreement with Leduc County
The tax share agreement with Leduc County dates back to 1988. In 1986 the City of Leduc proposed an annexation application which included the EIA and the Nisku Industrial Park.
The Local Authorities Board (LAB), the annexation authority at that time, concluded that the City of Leduc should only be granted 100 hectares of land and that the EIA and Nisku Industrial Park should remain in Leduc County. However, the LAB did recommended that the City of Leduc should receive a share of revenue from the EIA and that the City and Leduc County should consider a joint economic development authority to promote the region. Thus the initiation of today’s Leduc Nisku Economic Development Authority.
The LAB concluded because of the location of the City of Leduc immediately adjacent to the EIA and “the Airport’s negative environmental impact” the City of Leduc “is in equity entitled to some proportion of the revenue.” The Minister of Municipal Affairs, of the day, then enforced the execution of a tax share agreement between the City of Leduc and Leduc County.
This agreement was re-negotiated in 2010 with some adjustments. A capped financial contribution to the cost of airport fire services protection and financial support for the County Staff Assessor/Development Office position was incorporated. The current agreement does not expire, however, the two parties must meet prior to December 31, 2017 to review the terms and consider whether there are any amendments to it that are acceptable to both parties.