The dispute surrounding taxation between the City of Prince Rupert and the Prince Rupert Port Authority (PRPA) is over.
The two organizations reached an agreement on Oct. 10 regarding what the PRPA would pay the city for payment-in-lieu of taxes (PILT) on undeveloped port land. The debate came about because the city believed payments should be made based on BC Assessment values while the port authority has a third-party assessment done on the federal lands and pays mill rate based on that valuation. The valuation was disputed by the city and a new valuation was done.
The agreement calls for the a one-time payment of $2.6 million to reflect the new valuations retroactive to 2007, money the city has already received through advance payments in 2013 and earlier this year, while the 2014 payment was valued at $1.152 million and was paid in July.
The agreement was welcomed by both Prince Rupert city manager Robert Long and PRPA president and CEO Don Krusel.
"This represents the reasonable conclusion of months of work and close collaboration between representatives of the City and the port authority. We recognize the significant economic benefits the Port of Prince Rupert brings to our community, and the payments in lieu of taxes represent a contribution to the financial resources of local municipalities in our area," said Long.
"The growth and expansion of the port has always benefitted from a strong and effective partnership between the City and the Port Authority, and we're pleased we've been able to put this dispute behind us. PRPA and the city have been able to use the tools available to us to find a fair resolution to this issue, which allows us to once again align our efforts to welcome future opportunities and investments," added Krusel.