Stonebeidge Levy Q&A

What is Stonebridge levy ?

It is a new tax to pay for special service provided by the City of Ottawa. It is a special service levy

What is the special service provided by the City of Ottawa ?

It is unlcear. Presumably it is a 198 acres of land to be used as a golf course or "greenspace" provided to the public.

Who will own the land ? Will SCA own the land ?

In order to use the power of taxation, as per Municipal Act, the land must be publicly owned. Hence the City must assume the title and own the land in order to tax residents

When will this service start ?

The service will commence when the City assumes the title. This service may start sometime 10 years from now.

Can the City assume the title ?

It can, if SCA declines the offer of purchase (because it is a first option buyer and the City is the second in line) and if Mattamy decides to sell in principle.

Will this service start for sure ?

No. The service MAY start in 10 years from now, provided that:
a. SCA declines to buy allowing the City to become the buyer
b. Mattamy does not retract from the agreement during the next 10 years (go bankrupt, go back on their word, etc)
c. City retracts from the agreement (new counsel, recession, change of plans, etc)
d. Buy back clauses are not triggered. For example:
 From the Letter Of Intent, section 6.f.ii:
        "Second Option to the City 
In the event that any part Of the Property ceases to be used as a Golf Course and/or Open  Space/Green Space, or if the City sells, conveys, transfers or otherwise disposes of the Property, Mattamy will have the option to repurchase the whole of the Property for the sum  of Six Million Dollars"

Hence if the City sells the land to "local community group", as per letter from the City of Ottawa, Mattamy can buy back the land:
The City Of Ottawa Letter accompanying the ballot:
"Purchasing the Land and the Estimated Tax Levy
To comply with the Municipal Act, 2001, the City of Ottawa would have to purchase the golf course from Mattamy Homes and sell or lease the land to the local community group for a nominal amount after collecting the levy. "

If the service may never be offered - what will happen to the money collected thus far ?

 The City will keep the money and use it for other purposes

Is it legal to tax residents for service not provided ?

No

Can we all walk on golf grounds after the City assumes the title ?

 No.

Will there be "shares" ?

No shares are mentioned in any document presented thus far. Shares are not part of LOI. Land will belong to the City of Ottawa. Golf business will be operated by someone who SCA decides, if anybody. It is important to note that any type of shared ownership not only assumes benefits, it also assumes liabilities such as maintenance.

Who will pay for golf maintenance cost ?

SCA has no explanation for that other than perhaps a golf business management company they find might pick up maintenance cost. It is unclear if they will and if the quality of that maintenance will boil down to 'sufficient enough' risking to run the golf to the ground.

 What are maintenance costs, how much are these ?

Examples are maintenance of the lawn, irrigation system, clubhouse (roofing, windows, etc). A 9 hole course in Stistville requires 750 000$ annually, as an example

Is it possible that Stonebridge residents will be asked to pick up ongoing maintenance costs, as another levy ?

Yes, it is possible. The land being public, the City can impose other levies thereafter

If too costly or for other reasons can the golf be converted to greenspace ?

In principle - it can be. It is unclear who will make that decision, when and how.

What will the greenspace look like ?

Abandoned land. Stonebridge golf uses grade 9 pesticides, it needs to cleaned up before public can safely walk on it. The extra million dollars provisioned by the levy is to be spent on environmental clean up and closing costs (e.g. legal). Thereafter 198 acres of well maintained parkland requires maintenance - lawn, walkways, parking, benches, etc.. There is no money allocated for that. Unless City will impose another levy to maintain it - it will be an abandoned land type of greenspace.

If SCA wants to buy the golf course, why are they not paying for it, it is not going to be a public space so why is the rest of the community paying for it?

There are 1400 households that voted Yes to the special levy. Clearly they want to pay for this project. SCA has no answer why they are forcing the rest 2000 households to pay for their initiative

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