The ramifications of last spring's devastating Penhold Wild Rose Manor fire is still being felt with the owner fighting a tax bill and questioning whether he will rebuild on the site.
Jim Guibault, owner of Prentiss Martom Ltd, which operated the 18-unit Wild Rose Manor at 40 Esther Close, appeared in front of Penhold council on July 28 to appeal his tax bill of $23,932.02.
“As Wild Rose Manor was destroyed by fire on April 10, we feel that our property tax bill should be reduced by 66 per cent to recognize the fact that our building did not exist for eight months in 2014,” said Guibault, “It seems unfair to us that we are being charged a full year of taxes.”
Guibault calculated his tax burden to be $11,370.40 instead of the full amount of $23,932.02, based on improvements and the lot size.
“After the fire, we reimbursed our tenants for services not received and believe the Town of Penhold should do the same,” said Guibault.
Rick Binnendyk, the town's chief administrative officer, reminded the property owner the tax deadline was July 31 and he should pay the taxes and avoid penalties, adding that if administration were to grant his request he would receive a rebate after the fact.
Earlier this month, Guibault's company was billed more than $130,000 for fighting the fire on April 10.
“When we received the bill, my insurance company was bewildered,” said Guibault. “They told me they have fought fires as large as $20 million and only paid up to $25,000 to the municipality for their work.”
Penhold mayor Dennis Cooper assured Guibault that only the bills that the town received were passed on to his company and they “tried to be fair.”
The property owner also questioned the tax rate he was evaluated at and the property assessments his condos received.
“In comparison to other markets where we have property, Edmonton and Lacombe, values in Penhold are higher with higher taxes associated with them,” said Guibault. “For instance, our one-bedroom condos are $108,440 in Penhold but as low as $88,000, with $612 less in taxes in other communities.”
Cooper countered by admitting, “Our tax rates are higher, but we are not Red Deer or Edmonton.”
Guibault pressed council on their policy of start dates for tax assessments with reference to if and when he rebuilds on the vacant site.
“If I have to pay the full tax bill, and if we do rebuild, when will the new buildings be taxed?” asked Guibault.
Cooper asked the property owner what type of building would replace the burnt- out apartment building.
“We are now attempting to put together a new residential housing development on the property,” said Guibault, who went on to say that they had operated Wild Rose Manor for 18 years and had never turned a profit, prompting them to consider a townhouse option instead. “Due to taxes being considerably higher in Penhold, and rental income 10 to 15 per cent less, we would like some assurance that we will be charged residential tax rates instead of commercial. It will make a difference.
“Funding for the whole project has been in question and we want to make sure we are able to receive a fair rental income for each dollar invested,” added Guibault. “We are finding it hard to justify rebuilding with our previous numbers.”
Guibault's request on his tax bill and other related issues were turned over to town administration for discussion.
