Conflict of interest confirmed

July 16, 2009 11:00 AM Kamloops This Week:

The city’s downtown tax-revitalization bylaw was on the table at city council again this week — but two members were noticeably absent. Councillors Tina Lange and Denis Walsh excused themselves from the discussion because, had they stayed, they would have been in a conflict of interest. Following KTW’s July 3 story questioning whether the pair was in conflict, the city has confirmed that the two were in a conflict of interest by taking part in earlier debates around the proposed changes to the city centre revitalization tax exemption bylaw. Walsh and Lange own property within the bylaw zone.

Randy Diehl, the city’s chief administrative officer, explained neither staff nor other councillors viewed it as a conflict previously because the tax exemption covered such a large area. “But the case law on the matter is that, when you have a specified area like the downtown [revitalization] area, it’s a conflict because you stand to gain one way or the other from it,” Diehl said. Lange is part owner of the Heritage Plaza Hotel, while Walsh owns the Crossroads Inn. Diehl noted that, under the rules, councillors are supposed to identify a conflict prior to any discussion, whether it be in the public realm, at a workshop or during an in-camera meeting. He said once it was flagged by city staff, the two councillors were advised of the situation. Diehl admits the mistake should have been caught, labelling it a “wake-up call.” As for the bylaw itself, it has yet to be officially approved by council, so it remains unaffected.

Lange said she didn’t consider herself in conflict because the bylaw doesn’t change her property. The hotel already has a heritage-tax exemption and can’t qualify for the revitalization benefit. The original revitalization bylaw was first introduced in 2006, before the councillor became part owner. However, Lange said that, upon reflection, she understands some people could see it as a conflict, suggesting it’s just easier for her to leave the room. Walsh said he will also excuse himself when the topic is discussed. “Being a property owner, I have to realize that I have to step out because I am in the tax [revitalization] zone,” he said. Further debate on the tax exemption was deferred so wording on the bylaw could be changed. The tax exemption is aimed at encouraging new development or renovation of old buildings in the downtown core. Eligible developments can receive a 100 per cent exemption from municipal taxes for up to 10 years, but only on the increased assessed value of the property.