Would the City of Winnipeg consider selling land valued at $1.75 million for a buck Yes, according to a recent proposal tabled before the city's Executive Policy Committee (EPC) on October 20, 2004.

The First Nations Education Trust, Inc. (FNET) represented by the Assembly of Manitoba Chiefs (AMC) wants to purchase 8.5 acres of city owned property on Marion Street in St. Boniface for one dollar. However, the land is valued at far greater than one dollar; in fact, the potential net revenue of the 8.5 acre site is estimated at $1.75 million. The city originally planned to sell the land for its estimated cost and use the revenue to subsidize the cost of developing the remainder of the public markets area.

In addition to one dollar, the First Nations Education Trust is prepared to consider - as a "gift" - a conveyance of a 1.65 acre riverbank property located within the St. Boniface Parkway. The FNET will give the land in an "as is" condition to the city in order to facilitate development of the St. Boniface Parkway. The term "as is" should raise a few eyebrows at city hall.

The property has approximately $36,500 owing on it in unpaid realty taxes, interest and penalties. The FNET has requested the city - Winnipeg taxpayers - pay all of the realty tax arrears, interest and penalties if the city wishes to acquire the property. That's not all. An additional $164,000 will be required to complete the appropriation process to bring the property up to environmental and city standards. It's the gift that keeps on taking.

The First Nations Education Trust and the Assembly of Manitoba Chiefs are proposing the land swap to increase economic development opportunities for the AMC; specifically, to establish a Manitoba First Nations Institute of Trades and Technology and to eventually petition the federal government to have the land designated an "urban" reserve.

In a letter to Mayor Sam Katz dated July 26, 2004 the Roseau River Anishinabe First Nation Government Chief Terrance Nelson acknowledged, "The Roseau River has a resolution by all Assembly of Manitoba Chiefs that recognizes that the underlying title to the Assembly's lands in the city [of Winnipeg] would fall under Roseau River Treaty Land Entitlement process." The letter further states, "We will be prepared to purchase up to 30 acres of land for the urban reserve and have offered AMC support for their 8.5 acres currently before the EPC."

If the 8.5 acres of land is designated an "urban reserve", the City of Winnipeg would loose approximately $10,792 per year in property taxes. True, native bands negotiate an agreement with municipalities to pay fees for services - such as sidewalk and road maintenance - in lieu of the regular property taxes. However, due to the protection of the Indian Act, there is no way the city of Winnipeg can force the owners of the "urban reserve" to pay for services received.

Considering all of the demands on the current revenue streams, the City of Winnipeg should think long and hard before they go ahead with the land swap. Not only will the taxpayers of Winnipeg lose a $1.75 million asset, they will lose the property taxes that would otherwise have been received from the land.