Normally a new development in Regina's north central neighbourhood would be welcomed with open arms by the business community and taxpayers alike. This is, after all, the neighbourhood skewered in the now infamous Maclean's magazine article which dubbed it "Canada's worst neighbourhood."

Nonetheless, this particular development has not been warmly greeted by many Regina taxpayers.

Several years ago Piapot First Nation purchased a half block of land in the troubled area of town using treaty land entitlement money. Now they are seeking to have the property given "reserve status" so their proposed gas bar and grocery store can operate tax free.

Like any other reserve, urban reserves are placed by the Indian Act beyond the reach of provincial and municipal taxes. Although native reserves enjoy the benefits of local police and fire protection, municipal water and sewer services, bands cannot be compelled to pay taxes to local governments.

Reserve businesses can purchase goods or services tax free, meaning they can turn around and sell their products more cheaply than their non-reserve competition. Even their heating and power bills are lower.

There are also regulatory issues around urban reserves. Most Saskatchewanians are familiar with the smoking ban issue in Yorkton, where the reserve-located casino allowed smoking in their restaurant and bar while established operators are forbidden to do the same. In fact, health inspectors have no authority to enforce smoking laws on reserve land. Period.

When businesses and taxpayers say urban reserves are detrimental to the local economy they have countless examples across the country to make their case. So far, these concerns have fallen on deaf ears at Regina City Hall.

As for local services, the city must negotiate a "service agreement" in which the band agrees to pay the municipality an amount equivalent to what they would have paid in property taxes without "reserve" status.

The City of Regina already has a service agreement with Piapot waiting to be ratified by council. In fact, the first anybody heard about the agreement was just a few days before a vote. Deciding where a skateboard park would be located took countless meetings and public consultations, yet not a single public meeting was ever held to discuss the creation of an urban reserve.

It's clear that city hall wants to push ahead with this proposal regardless of any concerns held by the community. Incredibly, members of the media have already been invited to an official signing ceremony the day after council votes.

Why is Regina in such rush Shouldn't Regina businesses be given some opportunity for input prior to the arrival of tax-free competition

It's hard not to wonder if this big push by Regina doesn't have something to do with the embarrassing Maclean's article. It's never a good idea to create public policy according to the headlines of the day - especially when it means serious consequences for established businesses and tax base in the community.

There is still time remaining to put the breaks on this urban reserve but once the reserve designation is obtained, only a majority of band members can undo it. Let's hope Regina city council chooses to err on the side of caution and allow some time for public consultation.