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Urban Reserves in Saskatchewan
Saskatoon
Creation of the Muskeg Lake Cree First Nation Urban Reserve
In the past, urban reserves were created when municipalities extended their borders to integrate previously existing reserves. In 1988, Saskatoon became the first city in Canada to actually establish a new urban reserve that was specifically intended to be a First Nation's commercial and economic development project .5 The Muskeg Lake urban reserve, also known as the McKnight Commercial Centre, is 33 acres of land on the eastern edge of Saskatoon. This land was originally purchased by the federal government to build a correctional institution.6
Discussions about the creation of the Muskeg Lake urban reserve in Saskatoon began in 1984. Muskeg Lake placed a claim on the land with the Federal Government in August of 19848 and in 1988, an agreement was made between Muskeg Lake Cree First Nation, Canada, and the City of Saskatoon (the City). This agreement included five major components: the federal government would set apart the parcel of land for Muskeg Lake Cree Nation and transfer it to reserve status; Muskeg Lake would lease the land to a development company; First Nation members would agree by way of vote to any sub-leasing of the land; the city would provide the installation of services and the reserve would be connected to the city's infrastructure system; development on the reserve would at all times be in accordance with the laws of Saskatchewan and the bylaws of Saskatoon.8
Municipal Services Agreement
In 1993, the City of Saskatoon and Muskeg Lake Cree First Nation completed negotiations and established the Municipal Services Agreement.9 This agreement outlines the relationship between the City and Muskeg Lake with regards to the provision of services and the payment for these services by Muskeg Lake.
In this agreement, the City agrees to provide all municipal services, such as garbage pick up, snow removal and fire and police protection. The city also agrees to supply direct services, such as water and electricity, and each individual customer will be billed separately for these direct services.
In return, Muskeg Lake agrees to collect taxes on the property and to pay an annual, lump-sum municipal service fee, which amounts to what the city would have received in taxes had the land been under municipal jurisdiction.10 In collecting its taxes, Muskeg Lake adopts the going commercial municipal tax rate in Saskatoon. This rate is applied equally to both First Nation and non-First Nation businesses on the urban reserve.
The actual sum paid by Muskeg Lake to the City compares with the sum the City would have received if it had taxed tenants on the reserve at the existing commercial rate. Interestingly, the City receives the commercial rate even though the urban reserve is actually federal land (held in trust). Typically, federal and provincial lands within the city are taxed at a lower rate than commercial properties.
Both parties in the agreement also agree that at all times, land use and development on the urban reserve will be the same as if the land were not reserve land and that Muskeg Lake will abide by all city bylaws.11
To ensure adherence to the agreement and to assist in the development of their own bylaws, Muskeg Lake obtained the professional services of engineers, planners, management consultants and legal counsel.
Economic Situation
There are currently over 40 businesses operating on the Muskeg Lake reserve and, in total, they employ over 300 people.12 The largest on-reserve employers are aboriginal government businesses, and include the Federation of Saskatchewan Indian Nations (FSIN), the Saskatoon Tribal Council, and the Saskatchewan Indian Gaming Authority (SIGA).13 A diverse range of other businesses providing employment include a dry-cleaning plant, an Aboriginal-owned trust company, a restaurant, a doctor's office, a large transportation company, three law firms, three insurance brokers with one Saskatchewan Government Insurance (SGI) license issuer, retail stores, a computer training company, gas station, a film production company and a travel agency, among others. Many of these businesses are housed within Veteran's Plaza, an office complex.
There are a few non-Aboriginal owned businesses on the Muskeg Lake reserve. These businesses include an engineering firm, a chartered accountant, and two of the insurance brokers.
In order to enhance the development potential of the reserve, a new roadway was recently built to improve access to the Muskeg Lake urban reserve. The cost of the project was $778,552. The City of Saskatoon contributed $221,986 to the project's cost, the Muskeg Lake Cree Nation contributed $194,666 and the Federal and Provincial governments contributed $361,900. This road has increased traffic flow to the reserve, improved access to its businesses and services. The traffic count is approximately 7,940 each day.
Business development is also expanding on this urban reserve. There are plans to establish a dental clinic, commercial condos, a retail sports store and a car wash. There are potential plans to establish a business service centre. Recently, the Muskeg Lake Cree Nation also proposed the development of a comprehensive wellness centre, including an MRI facility. Plans are expected to be completed by the Fall of 2004 pending approval of the provincial government.
Urban Reserve Benefits
This urban reserve is proving to be mutually beneficial for the Muskeg Lake Cree First Nation and the City of Saskatoon. The urban reserve has made Saskatoon a significant commercial centre for Aboriginal businesses and entrepreneurs. The on-reserve presence of Peace Hills Trust, an Aboriginal-owned trust company that specializes in providing banking services to First Nations, enhances this reputation of Saskatoon as a commercial centre for Aboriginal entrepreneurs and businesses.14
The creation of the reserve has also resulted in tangible financial benefits for the city for providing municipal services to the reserve. The lines for municipal water, sewer and electrical services were already present prior to the transfer of the land to urban reserve status. However, due to the undeveloped status of the land, few taxable benefits accrued to the City. By moving to urban reserve status, taxable benefits to the City were accelerated and are now four times the level compared to the return to the City when the land remained undeveloped.
As well, the development of the urban reserve in Saskatoon provided a more detailed framework from which to work from for the creation of other urban reserves, such as the three urban reserves in Yorkton. It was also very valuable for the formulation of article 9 in the TLEFA, which outlines responsibilities between First Nations and municipal governments.
Other Potential Urban Reserves
Besides the Muskeg Lake urban reserve, there are four other parcels of land in Saskatoon that have Municipal Servicing and Compatibility Agreements signed with the City of Saskatoon, as of December 2004. They all have a Municipal Services and Compatibility Agreement with the City of Saskatoon. However, none of them have received formal urban reserve designation. They are expected to receive designation in the future.
The Battlefords Tribal Council owns a parcel of land containing the Avord Tower, a large office complex located in downtown Saskatoon. The Yellow Quill First Nation owns the Canterbury Office Tower, a nine-storey office building located on another parcel of land downtown. This tower houses the First Nations Bank of Canada. The Churchill Building is an office building located downtown that is in the process of being owned by the Yellow Quill First Nation. T he third parcel of land located at 1601-1605 20th Street West is owned by the One Arrow First Nation. A Municipal Services and Compatibility Agreement was recently made between the One Arrow First Nation and the City of Saskatoon. The other parcel of land is on Speers Avenue and is owned by the English River First Nation. It contains a commercial office complex.
Prince Albert
Creation of Three Urban Reserves
The first urban reserve in Prince Albert was developed on the city's west side. In 1978, the Peter Ballantyne Cree Nation first expressed an interest in owning a 41-acre parcel of land that was the site of the Prince Albert Indian Student Education Centre (PAISEC).15 The creation of this urban reserve, now called the Opawakoscikan Reserve, was controversial from the beginning. City council, the provincial government and members of the general public expressed strong opposition to the idea of a reserve within the city limits of Prince Albert.
A municipal services agreement was drafted in 1980 and 1981, but was rejected by the Prince Albert city council due to municipal jurisdiction issues. The First Nation stated that it would not allow municipal jurisdiction on reserve land and city council felt that this would result in complete disregard for municipal interests. Despite opposition, in 1982, the Opawakoscikan Reserve received formal reserve land designation by order-in-council of the Privy Council. Although a formal municipal services agreement did not exist at this time, services were provided to the reserve for payments. For twelve years, the reserve operated without any problems.16
The second reserve is a parcel of land that was purchased in 1995 as an extension of the already existing urban reserve. It was at this time that the city and the First Nation signed a Memorandum of Understanding Agreement, outlining the details of the informal agreement that was already in place for the Opawakoscikan Reserve. A Municipal Services Agreement was then signed for the extension of the reserve, although the urban reserve extension has not yet received formal urban reserve designation.17
Both of the agreements state that the city will continue to provide the same municipal services, which are paid for in fees to the city, in lieu of taxes, at the same rate that would have been paid if the land were not reserve land. These agreements were made without controversy.
The third urban reserve in Prince Albert is also owned by the Peter Ballantyne Cree Nation and is the site of the Northern Lights Casino. Initially, there was some opposition from the city and from members of the community about the proposed development of a casino in Prince Albert. However, the casino was eventually approved. A Municipal Services Agreement between the Peter Ballantyne Cree Nation and the City of Prince Albert was established in 1997. This agreement is similar to the ones made for the Opawakoscikan Reserve and its extension.
Urban Reserve Benefits
The expansion of the Opawakoscikan Reserve has resulted in more building and investments in the Prince Albert area, which also means additional revenues to the City of Prince Albert for municipal services.18 In 1994, on the Opawakoscikan Reserve and its extension, a 23,000-square-foot office complex was built to provide administrative offices for the Peter Ballantyne Cree Nation, the Prince Albert Grand Council, the Saskatchewan Indian Equity Foundation, a branch of the Canadian Imperial Bank of Commerce and on-reserve offices for the Pandila-Morin law firm. The office complex now also houses the Peter Ballantyne Cree Nation Health Services Inc. administrative services, a newspaper office and First Nations Insurance Services.
The third urban reserve in Prince Albert is home to the Northern Lights Casino. Approximately 430 people are employed at the casino, with this number having increased recently. There are no other businesses on this reserve.
North Battleford
Creation of the Urban Reserves
There are currently two urban reserves in North Battleford.
The Red Pheasant First Nation has a 357-acre urban reserve on the eastern outskirts of North Battleford, along Territorial Drive. This land was purchased in 1995 and continues to be used as it was zoned, for agricultural purposes.19 A municipal services agreement could not be established between the City of North Battleford and the Red Pheasant First Nation. In 2001, the issue went to arbitration and the Arbitrator, Dan Ish, ruled that the City of North Battleford was unwilling to enter into the proposed municipal services agreement. The Red Pheasant First Nation made an application for the lands to receive formal urban reserve status designation without an Urban Reserve Services Agreement and in January 2003, this occurred.20
Without a services agreement, the City does not receive tax loss compensation coming from the sale of land; there are no municipal taxes being collected and there are no agreements for bylaw compatibility or dispute resolution.21 There are prospects for the urban reserve to become commercialized,22 but it may depend on whether a municipal services agreement can be established.
The other urban reserve in North Battleford is a 5-acre parcel located in a highway commercial zone. The process of establishing this urban reserve occurred over a period of years. In June 2001, the City of North Battleford and the Mosquito, Grizzly Bear's Head, Lean Man First Nation signed an Urban Reserve Services Agreement and in January 2002, the land received formal urban reserve status.23
This Urban Reserve Services Agreement was made relatively easily because both parties knew the market and the development that was to occur.24 The agreement specifies that at all times, land use and development on the urban reserve will be the same as if the land were not reserve land and that all city bylaws will be abided by. Municipal service fees are paid to the City of North Battleford similar to the way that other off reserve businesses pay them.
Urban Reserve Benefits
Currently, there are four businesses being run on this urban reserve. They include: the Golden Eagle Casino, Blackjack's Saloon, the Smoke Shop, and the Kihiw Restaurant.25 The Battlefords Tribal Council owns Blackjack's Saloon and the other three businesses are owned by the Saskatchewan Indian Gaming Authority (SIGA). There are over 300 people employed on the urban reserve and there has also been a recent increase in the employment rate at the Casino. A new hotel and convention centre will be constructed in 2004. This will add to the increase in employment by providing jobs for approximately 100 people.
Yorkton
Creation/Benefits of the Urban Reserves
The development and operation of the Muskeg Lake urban reserve in Saskatoon has served as a model for the establishment of the three urban reserves in Yorkton. Like Saskatoon, from the beginning, Yorkton city council supported the creation of urban reserves and this proved to be beneficial for all parties involved.
The municipal services agreements for all three urban reserves in Yorkton are very similar to the agreement made for the Muskeg Lake reserve in Saskatoon regarding financial compensation on an annual basis to the City for municipal services and regarding bylaw compatibility.26
The first urban reserve was created in Yorkton's west-end and is the location of the Yorkton Tribal Council, which is housed within a 15,000 square foot office building. The Sakimay First Nation owns this land, which received urban reserve status in 1996. As noted above, there is a municipal services agreement with the City.
Currently, the Yorkton Tribal Council office employs approximately 50 people. There are no other businesses or organizations in the office building on this reserve. However, once a new casino opens on the Kahkewistahaw Urban Reserve in Yorkton, there is a possibility of increasing the number of employees in the building.
The Sakimay First Nation also owns the second urban reserve, which is the location of the Painted Hand Casino. This reserve was also created in 1996 and as noted above, there is a municipal services agreement. There are approximately 210 people employed at the Painted Hand Casino. No official decisions have been made about what development will occur on this land once the new casino is built on the Kahkewistahaw Urban Reserve.
The third urban reserve in Yorkton is the Kahkewistahaw Urban Reserve. It is an 8-acre parcel of land located in Yorkton's west end. This urban reserve was created in August of 2002. Recently, May 1 st 2004, a new gas bar opened on this urban reserve. It employs approximately 16 people. There will be an increase in the number of businesses and in employment rates as there are plans for a new casino and a large office complex to be built. Construction is expected to begin in 2005.
Other Urban Reserves in Saskatchewan
Other urban reserves in Saskatchewan are located in Kylemore, Meadow Lake, Spiritwood, Deschambault, Southend, Sturgeon Landing, Denare Beach, Kinoosao, Sturgeon Landing 2, Sandy Bay, Pelican Narrows, and Lebret. There are two urban reserves in both Duck Lake and Leoville and there are currently three urban reserves in Fort Qu'Appelle. There are a total of 28 urban reserves in Saskatchewan.
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5 Sully and Emmons supra note 1 at 9.
7 INAC, http://www.ainc-inac.gc.ca/pr/pub/ep/effneg_e.html
11 Sully and Emmons supra note 1 at 7.
12 Sully and Emmons supra note 1 at 9.
14 Marty Irwin, "Municipal Perspectives From Saskatoon" Urban Indian Reserves: Forging New Relationships in Saskatchewan (Saskatoon, SK: Purich Publishing, 1999).
15 The Peter Ballantyne Cree Nation, "The Opawakoscikan Reserve in Prince Albert" Urban Indian Reserves: Forging New Relationships in Saskatchewan (Saskatoon, SK: Purich Publishing, 1999).
16 The Peter Ballantyne Cree Nation, "The Opawakoscikan Reserve in Prince Albert" Urban Indian Reserves: Forging New Relationships in Saskatchewan (Saskatoon, SK: Purich Publishing, 1999).
18 Denton Yeo, "Municipal Perspectives from Prince Albert" Urban Indian Reserves: Forging New Relationships in Saskatchewan (Saskatoon, SK: Purich Publishing, 1999).
19 "Sask. Party, candidate split on merits of urban reserves," The Star Phoenix, April 21, 2003.
20 Leader Post, January 20, 2003.
22 Telephone interview with Larry Wuttunee, Red Pheasant First Nation, Saskatoon, SK. May 11, 2004.
23 Telephone interview with Jim Toye, City Commissioner, City of North Battleford, Saskatoon, SK. May 10, 2004.
22 F. Laurie Barron & Joseph Garcea, "The Genesis of Urban Reserves" Urban Indian Reserves: Forging New Relationships in Saskatchewan (Saskatoon, SK: Purich Publishing, 1999).