Wanuskewin Heritage Park Lease of City-Owned Land – Application for UNESCO World Heritage Designation

Recommendation That the Standing Policy Committee on Finance recommend to City Council that the reinstatement of a long-term lease with Wanuskewin Heritage Park, including an Option to Purchase, based on the terms contained herein be approved.

Topic and Purpose The purpose of this report is to receive approval to reinstate a long-term lease agreement with Wanuskewin Heritage Park (WHP), including an option to purchase for the SE and NE 35-37-5-W3 and portion of SW ¼ of 35-37-5-W3, comprising the area east of the future realigned Wanuskewin Road, estimated to comprise approximately 374.26 acres, based on the terms identified within this report.

Report Highlights 1. WHP has undertaken a major campaign for revitalization of the Park and is in the process of applying for UNESCO World Heritage Designation.

2. The Administration recognizes the significance of WHP’s revitalization vision and the benefits the development could bring to the city and region, with or without a UNESCO designation.

3. WHP has reiterated its request for reinstatement of a long-term lease that would include an option to purchase the lands east of the future aligned Wanuskewin Road. The Administration is of the view that a lease of the lands, with conditions, is the best way forward to achieve both the City of Saskatoon’s (City) and WHP’s objectives.

Strategic Goal This report supports the long-term strategy of strengthening relations with Aboriginal organizations and the four-year priority of developing partnerships and programs with cultural organizations that will assist in enhancing economic, employment and training opportunities under the Strategic Goal of Quality of Life.

Background  The City has owned the land immediately west of WHP since 1981.  The book value of the 428.15 acres is $1.2 million.  Market value of the land is estimated at $25,000 per acre.  A lease signed in 2006 between the City and WHP for $1 per year for 99 years was terminated in 2012.  WHP has since undertaken a vision for a major revitalization of the Park.  WHP has initiated the process of applying for the UNESCO World Heritage Designation (UWHD) in consideration of that vision.

ROUTING: Asset & Financial Management Dept. – SPC on Finance – City Council DELEGATION: N/A April 4, 2016 – File No. AF4206-1 and CK4225-1 Page 1 of 4 cc: His Worship the Mayor Wanuskewin Heritage Park Request for City-Owned Land – Application for UNESCO World Heritage Designation

 WHP has advised the success of the revitalization project and the foundation of the UWHD application hinge on securing the adjacent City-owned lands, and that this is a time-sensitive issue.  WHP approached the City to assist with its vision and application for a UWHD by entering into a new long-term lease for the land that would include an option to purchase the lands within the next 10 years.

This report provides an update and associated recommendation relative to those discussions with WHP.

Report Campaign for Renewal and Expansion of WHP WHP has developed a comprehensive renewal vision to expand and revitalize the heritage park, comprised of several components including:

Site Improvements Cultural Spaces  Interpretive Centre Building Upgrades  Exhibitions and Displays  Exterior Interpretive Sites:  Great Hall o Medicine Wheel  Indigenous Art Gallery o Tipi Settlement  Education Centre o Canoe Landing o Archaeology Lab and Classrooms o Bison Jumps o Portable Archaeology Exhibit Visitor Experiences  Sweat Lodge Sites  Bison Encounters  Powwow Area  Children’s Playground  Amphitheatre  Camping Facilities  Trail Enhancements and Extensions

An integral component to WHP’s vision is to establish a bison herd consisting of approximately 50 animals that would be situated on the City-owned lands that were previously leased to WHP for that purpose. WHP is now prepared to move forward with that vision and is asking the City to reinstate the 99-year lease and would like to have an option to purchase the land within a period of 10 years.

To receive the acknowledgment and recognition of the significance of the Park and the improvements being made as part of the revitalization project, WHP has initiated the process of applying for the UWHD.

WHP’s official request is for the long-term lease agreement to be reinstated and that they be provided an option to purchase the lands within the next 10 years.

Benefits of the Revitalization Project and UNESCO Application The Administration recognizes the significance that a UNESCO designation could bring to the city and region, such as increased international attention, recognition, and tourism for the area; raising cultural awareness; and providing economic spinoffs. Although achieving UWHD designation is WHP’s ultimate goal and the campaign team is very confident it will occur, they are steadfast that the historical and cultural significance of

Page 2 of 4 Wanuskewin Heritage Park Request for City-Owned Land – Application for UNESCO World Heritage Designation the Park and its desirability as a tourism site will not be diminished in any way in the event WHP’s application is unsuccessful. From WHP’s perspective, the UWHD designation would be an added bonus to the renewal project and is not a requirement for its success.

Request for Reinstatement of Long-term Lease of City Lands with Option to Purchase It is apparent that WHP’s plans are moving forward and are at a point where they need clarity around the issue of the land required to meet its vision. WHP has reiterated its request for reinstatement of a long-term lease on the adjacent City-owned lands at a lease rate of $1 per year. In addition, WHP has requested that the lease include an option and first right of refusal to purchase the lands within the next 10 years at a price to be mutually agreed upon at the time the option would be exercised. The proposed lease will require WHP to substantially complete its renewal vision, including establishment of the bison paddocks within a reasonable time period. In addition, development to occur on the land will be very limited to non-intensive uses that support the WHP program.

As part of the terms and conditions of the agreement, an appropriate recognition agreement is to be developed in collaboration with WHP to recognize the City’s significant contribution in support of its revitalization vision and application for the UNESCO World Heritage Designation.

It is expected that at some time in the future, Wanuskewin Road will need to be realigned to accommodate the proposed Perimeter Highway. The Administration and WHP have agreed that if City Council approves WHP’s request for the land, the City would retain the lands west of the realigned Wanuskewin Road with the roadway serving as the divider from the Park. A current conceptual drawing (Attachment 1) of the realignment indicates approximately 374 acres would be available to WHP for lease or possible purchase. Lands west of the Wanuskewin Road realignment would be developed with sensitivity to the Park and could include land uses that would be complimentary and beneficial to WHP.

Public and/or Stakeholder Involvement Discussions have been held on several occasions with WHP regarding the somewhat conflicting goals of both parties relative to the subject lands. The Administration has identified to WHP the significance of these lands in terms of development and the contribution to the significant servicing costs of this area and the impact that removing these lands from the development stream would present to the City. WHP understands the City’s stance, much in the same that the Administration understands how significant land holdings play into WHP’s ultimate goal of achieving its vision for the Park.

Communication Plan Pending approval, an appropriate communication plan will be developed in consultation with WHP to recognize the City’s significant contribution in support of its revitalization vision. To kick off the importance of this agreement, a joint public relations event would be coordinated for the official signing ceremony and would be promoted through a news release and shared on the City’s website and social media channels.

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Policy Implications Sale or lease of City-owned lands at an amount less than market value requires City Council approval and a public hearing.

Financial Implications In previous reports, the Administration has outlined the significance of these lands in terms of development and its contribution to the significant servicing costs in this area. A high-level servicing investigation by the Transportation and Utilities Department determined that it would be cost effective to extend trunk services on the east side of the Canadian National Railway (CNR) rail line as opposed to the west. Most of the efficiencies on the east side of the railway result from ability to extend storm water trunks directly to the South Saskatchewan River.

While a long-term lease would result in lost development opportunity for the City’s Land Development business line and the subsequent loss in tax revenues, it would provide a positive economic benefit for the community as a whole through increased tourism and spin off benefits from the designation.

Other Considerations/Implications There are no environmental, privacy, or CPTED implications or considerations.

Due Date for Follow-up and/or Project Completion Direction issued by the Standing Policy Committee on Finance will determine required follow-up. Notable terms of the lease would be documented in the public report requesting City Council approval.

Public Notice Pursuant to Public Notice Policy No. C01-021, Section 3(i), Public Notice is required for matters that consider the selling or leasing land for less than fair market value and without a public offering. Direction of the Standing Policy Committee on Finance will determine if Public Notice will be required.

Attachment 1. Drawing Showing City Lands in Relation to WHP

Report Approval Written by: Keith Pfeil, Manager, Real Estate Services Frank Long, Director of Saskatoon Land Reviewed by: Kerry Tarasoff, CFO/General Manager, Asset & Financial Management Department Approved by: Murray Totland, City Manager

WHP Request_City Land Apr 2016.docx

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