CALGARY — The provincial government is sticking by a plan to rebuild the flood-ravaged Kananaskis Country Golf Course, because it would cost taxpayers more walk away from the deal.
“We’ve had to make the best of a bad situation here,” said Shannon Phillips, minister of environment and parks, on Wednesday.
The 36-hole course, which calls itself one of the premier golf destinations in the Canadian Rockies, was heavily damaged during the massive June 2013 southern Alberta flooding. Rising waters uprooted trees and washed away landscaping.
A year later, the Conservative government committed to rebuild the course and negotiated both a settlement and amended operating agreement with its contracted golf course operator, Kan-Alta.
However, reconstruction of the course was halted earlier this year until an independent review of the current contracts could be completed.
On Wednesday, Phillips said the report by Deloitte LLP had identified that rebuilding the course would be in the best interest of taxpayers.
“Let me be clear: we do not believe government should be in the golf course business,” said Phillips.
The report says breaking the agreement, which runs until 2026 and also covers the operator’s lost profits and some expenses, could saddle taxpayers with significant legal costs.
“Unfortunately, the contract we inherited locks our government into either rebuilding, or walking away and leaving Alberta taxpayers on the hook for millions of dollars now and further financial risk into the future. We will not throw good money after bad.”
“Breaking this agreement would open us up to an incredible amount of risk of legal entanglement,” Phillips added.
The province says the rebuild cost will be largely offset by federal funds that have been pre-approved through the Disaster Financial Assistance Arrangements.
After federal reimbursement, the net cost to Alberta will be either $3.8 million or $8.8 million, depending on the eligibility of an increased $5 million in flood mitigation for reimbursement. Approximately $2.5 million has been spent on work already completed.
Progressive Conservative MLA Richard Starke was the Tourism, Parks, and Recreation minister when the contract with Kan-Alta was renegotiated in 2014. On Wednesday he said the Deloitte review shows the PCs were right all along when it came to rebuilding the course.
The course, which charged $98 for a regular round of golf before the flood, is to reopen in 2017.
With files from Tom Vernon, Global News, and The Canadian Press.
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