With 36 years still left on their community’s lease, Redwood Meadows residents are hopeful that a lease extension will be granted because of their Town council’s efforts at relationship building with the Tsuu T’ina First Nation.
The townsite of Redwood Meadows is a community built on leased land provided by the Tsuu T’ina First Nation.
Though the current lease does not expire until 2049, some residents attending the townsite’s recent annual general meeting said they would like some certainty regarding the status of the lease negotiations.
Redwood Meadows Mayor John Welsh said while there is no current lease negotiation underway, he is confident that the lease is going to be renewed because Town council has worked on building a positive relationship with the Tsuu T’ina First Nation.
“Our goal is to align our values with the Tsuu T’ina First Nation and demonstrate the benefits of renegotiating the lease from an economic and social standpoint,” said Welsh.
Lawyer Linda Anderson, who has lived in the community since 1980 and was a townsite councillor for 15 years, said the lease is always on the agenda at Redwood Meadows Town council annual general meetings.
“If there is a lease renewal in the future than it is anticipated that Redwood Meadows property values will increase,” said Anderson.
“Right now, you get exceptionally good value for your money compared to what you get in Calgary.”
Anderson said there were 70 years left on the lease when she bought her house in Redwood Meadows in 1980. Today, there are 36 years left on the lease.
“With a shorter lease, it will be harder to get a mortgage,” said Anderson.
“There are currently no problems at all getting a mortgage, but in six years, it will be difficult to get a 25-year mortgage in the community,” said Welsh.
“We’re open to discussing the lease at all times.”
According to Anderson, the amortization of a mortgage is dependent on the length of the term of the lease, and the general rule is that the length of a lease has to exceed the amortization period by five years.
“All mortgages on leased land are tied to the length of the lease,” said Anderson.
“You need 30 years on your lease if you have a 25-year mortgage.”
Welsh said he has the greatest respect for the Tsuu T’ina First Nation and over the last number of years, he has seen positive progress with regards to relationship development and building.
“We’re trying to develop a long-term relationship and to demonstrate the benefits of extending the lease through developing this relationship,” said Welsh.
“This council is working really hard on relationship building and opportunity building with the Tsuu T’ina First Nation rather than simply focusing on our needs for lease renewal,” said Anderson.
Tom Robson, who moved to Redwood Meadows in 1983, said his main concern is that the townsite maintains its positive relationship with the Tsuu T’ina First Nation.
“We would like the security of understanding where we go from here and that starts with the relationship with the Tsuu T’ina First Nation,” said Robson.
“I think council is doing an excellent job and we do a lot of bridge building as a community.”
Robson said that residents of Redwood Meadows are fortunate to live in their community.
