The City of Prince Rupert, the District of Port Edward and the Prince Rupert Port Authority have reached a 10-year agreement aimed at bringing long-term certainty to payments made on undeveloped federal port lands.
The agreement establishes a stable framework for Payments in Lieu of Taxes (PILT), payments made by federal entities for undeveloped properties located within municipal boundaries. According to the parties involved, the resolution provides financial predictability for all three organizations while strengthening cooperation as the region continues to grow.
Prince Rupert Mayor Herb Pond said the agreement gives all sides certainty moving forward.
“This resolution brings certainty for everyone involved and allows us to move forward together,” said Pond. “Stability is what we need to keep our laser focus on infrastructure renewal and being an attractive host community.”
Port Edward Mayor Knut Bjorndal said the deal will help the district plan for future growth.
“We’re happy to be part of this resolution,” said Bjorndal. “As our region grows, this extra budget security lets us put our mind to the role that Port Edward can play.”
The Prince Rupert Port Authority says the agreement also provides greater financial certainty for the port itself while allowing all three partners to focus on expanding trade opportunities in Northwest B.C.
“It’s an exciting time for our region,” said Prince Rupert Port Authority President and CEO Kurt Slocombe. “With the City, District and Port now aligned on this topic, we are even better positioned to grow opportunities in northwest BC.”
Under the PILT system, federal entities, such as port authorities, make payments based on local property tax rates on undeveloped federal lands. Once those lands are developed and leased, they become taxable properties and are no longer subject to the Payments in Lieu of Taxes Act.
The City of Prince Rupert and the District of Port Edward say they look forward to continuing their partnership with the Port Authority as economic development projects move forward across the region.
