D A Cost-Benefit Assessment of the Hurley River Road Serving Whistler, Pemberton and Lillooet, BC

Prepared for:

Squamish-Lillooet Regional District and the Bridge River Valley Economic Development Society

7224701.1 / September 2002

#200 – 286 St. Paul Street Kamloops, BC V2C 6G4 Phone: (250) 374-8311 Fax: (250) 374-5334 Bridge River Economic TABLE OF CONTENTS Development Society & Squamish-Lillooet Regional District 1.0 INTRODUCTION ...... 1

1.1 BACKGROUND ...... 1 1.2 STUDY OBJECTIVE...... 1 1.3 THE PURPOSE ...... 3 1.4 STRUCTURE OF THE REPORT ...... 3 A Cost-Benefit 2.0 REGIONAL OVERVIEW ...... 4 Assessment of the Hurley River Road 2.1 PURPOSE ...... 4 Serving Whistler, 2.2 GEOGRAPHICAL AND ENVIRONMENTAL SETTING ...... 4 Pemberton and 2.3 REGIONAL DEMOGRAPHICS TRENDS ...... 4 Lillooet, BC 2.4 REGIONAL ECONOMY ...... 5 2.5 REGIONAL ECONOMIC ISSUES...... 8 3.0 BRIDGE RIVER-LILLOOET AREA ...... 10

3.1 POPULATION...... 10 3.2 ECONOMY OF BRIDGE RIVER LILLOOET AREA ...... 10 3.3 CHALLENGES OF THE REGION ...... 10 3.4 SUMMARY ...... 11 4.0 HURLEY RIVER ROAD PROFILE ...... 13

4.1 PURPOSE ...... 13 4.2 A BRIEF HISTORY ...... 13 4.3 CHANGING TIMES AND CHANGING USE ...... 13 4.4 RECREATIONAL OPERATIONS AND THE HURLEY RIVER ROAD ...... 14 4.5 THE LILLOOET LAND AND RESOURCE MANAGEMENT PLAN...... 18 4.6 SUMMARY ...... 18 5.0 IMPLICATIONS OF RECLASSIFICATION ...... 19

5.1 PURPOSE ...... 19 5.2 TOURISM AND RECREATIONAL DEVELOPMENT...... 19 5.3 SOUTH CHILCOTIN PROVINCIAL PARK...... 20 5.4 PROPERTY ASSESSMENT VALUES AND PROVINCIAL REVENUE ...... 20 5.5 CROWN LAND MARKETABILITY AND REVENUE ...... 21 5.6 COMMUNITY DEVELOPMENT ...... 21 5.7 THE HURLEY RIVER ROAD AS A DESTINATION ...... 22 5.8 REGIONALIZATION OF POTENTIAL OLYMPIC BENEFITS...... 22 5.9 SUMMARY ...... 23 6.0 CONCLUSION: A CASE FOR THE HURLEY...... 24

?GROWTH AND DEVELOPMENT OF WHISTLER ...... 24 ?POPULATION GROWTH IN THE SQUAMISH-LILLOOET REGIONAL DISTRICT ...... 24 ?SAFETY AND ACCESS REQUIREMENTS...... 24 ?MAINTAINING AND INCREASING PROVINCIAL REVENUES ...... 24 ?SUPPORTING LAND AND WATER BC’S REVENUE OBJECTIVES ...... 25 ?ACCESS TO SOUTH CHILCOTIN MOUNTAINS PROVINCIAL PARK...... 25 ?REGIONALIZING THE BENEFITS OF THE 2010 OLYMPICS ...... 25

7224701.1 / September 2002

Page (i) Bridge River Economic LIST OF ABBREVIATIONS Development Society & Squamish-Lillooet SLRD Squamish Lillooet Regional District Regional District LLRMP Lillooet Land and Resource Management Plan MOF Ministry of Forests LWBC Land and Water BC MOT Ministry of Transportation GVRD Greater Vancouver Regional District A Cost-Benefit Assessment of the Hurley River Road Serving Whistler, Pemberton and Lillooet, BC

7224701.1 / September 2002

Page (ii) Bridge River Valley 1.0 INTRODUCTION Economic Development Society & Squamish- 1.1 Background Lillooet Regional District The Squamish-Lillooet region is one of the most diversified resource areas of the province contributing significant revenues A Cost-Benefit and royalties to the provincial Assessment of the Hurley economy each year. Transportation River Road Serving has been and will continue to be Whistler, Pemberton and one of the key factors influencing Lillooet, BC the continued growth and development of this area. In fact, past improvement of the region’s transportation infrastructure (e.g. improved road access to Pemberton and Whistler and the paving of the Duffey Lake road to Lillooet) has proven to be a major catalyst for development and economic growth.

The road system is of particular importance as it is the primary mode of transportation for people and goods throughout the region. The condition of transportation routes is critical to ensuring the continued development and economic health of the area. At the recent UBCM conference, Premier Campbell reaffirmed the importance of transportation in regional development and emphasized that road access is critical to economic development and that “it is bad planning to let the road system deteriorate” (UBCM Daily, 2002).

While roads and transportation infrastructure have proven to be integral to the region’s economic growth, investment in road infrastructure has remained unbalanced leading to a major infrastructure deficit threatening the resiliency of many smaller communities. Transportation infrastructure has not kept pace with changing land use intensity and has hindered the area’s potential growth in recreation and tourism-based activities. Consequently, the provincial government has yet to realize the full benefits of the region.

Contrary to recommendations and policy drafted in the Lillooet Land and Resource Management Plan (LLRMP), one such case is the Ministry of Forests consideration to reclassify the Hurley River Road to a wilderness standard (See Figure 1). As there exists a wide range of resource, recreational and tourism based activities and opportunities throughout the Bridge River Valley that rely on the ongoing maintenance and service of the Hurley River Road, the proposed reclassification poses a significant threat to property values, business feasibility and access requirements to Gold Bridge, Tyaughton Lake (Tyax), Bralorne, Gun Lake, Lillooet, and the surrounding area.

1.2 Study Objective

The Hurley River Road is a vital access corridor to the region. It has assisted in the development and expansion of resource, tourism and recreation based activities and relevant service industries in the communities of Bralorne and Gold Bridge. It 7224701.1 / September 2002 currently provides the most direct access to private property, resort operations, Q:\spetrie\HURLEY RIVER ROAD FINAL.doc provincial parks and timber licensees. Any downgrading in maintenance threatens to Page 1 x yne2rundred2wile2rouse5 ‡ i

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The purpose of this paper is to present a case for the ongoing maintenance and improvement of the Hurley River Road. The paper documents trends supporting this position including: A Cost-Benefit ? Assessment of the Hurley Population growth and development trends in SLRD over the next 25 years River Road Serving ? The increasing importance and expansion of Whistler’s ‘sphere of influence’ Whistler, Pemberton and ? An increase of 900 % in traffic volume on the Hurley over the last ten years Lillooet, BC ? Safety and access requirements for residents of the Upper Bridge River Valley ? Tourism and recreational development in the Upper Bridge River Valley ? Crown land development in the region and LWBC revenue generation targets ? The potential to regionalize the benefits of the 2010 Olympics ? Provincial investment and increased use in provincial parks

1.4 Structure of the Report

This report is divided into the following sections:

Section 1 – The “Background” introduces the situation, and presents the premise of the case for improving the Hurley River Road.

Section 2 – “Regional Overview” provides an overview of the region, including population trends, demographic characteristics and regional economic issues.

Section 3 – “The Bridge River-Lillooet Region” provides an overview of local trends and development characteristics.

Section 4 – “The Hurley River Road” provides an overview of the Hurley including its role and function within the regional economy and its increasing importance to residents, recreation and tourism operators throughout the SLRD.

Section 5 – “Implications of Reclassification” speaks to local concerns and implications the proposal represents for the development of the Upper Bridge River Valley and financial costs for the Province of BC.

Section 6 – “Conclusion: The Case for the Hurley” summarizes the basic points presented throughout the proposal, reaffirms the case for maintaining the current level of funding for the Hurley River Road, and undertaking gradual improvements.

The basis of this report is that the province should not only continue to maintain the Hurley River Road to existing standards but undertake gradual improvements that will in turn lead to greater economic growth and development throughout the region.

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Page 3 Bridge River Valley 2.0 REGIONAL OVERVIEW Economic Development Society & Squamish- 2.1 Purpose Lillooet Regional District The purpose of this section is to provide background information with respect to the Upper Bridge River Valley of the Squamish-Lillooet Regional District. This information will help contextualize the role and function of the Hurley River Road within the broader trends shaping and transforming the area. The section briefly documents A Cost-Benefit the geographical setting and natural environment, demographic shifts and regional Assessment of the Hurley economic issues shaping in the Regional District. River Road Serving Whistler, Pemberton and 2.2 Geographical and environmental setting Lillooet, BC The Squamish Lillooet Regional District spans over 16,500 square kilometers of BC through five-biogeoclimatic zones ranging from the wet coastal western Hemlock along Howe Sound, to the drier Interior Douglas Fir Zone of the Lillooet River watershed. The land cover is varied and includes steep mountainous terrain, heavily forested areas, glaciers, river valleys and flood plains.

There exists a number of significant habitat areas and wildlife species throughout the Squamish Lillooet Regional District including black tailed deer, moose, black and grizzly bears, cougars, mountain goats and grey wolves.

The stunning scenery and diversity of the natural environment has served the region well. Increasingly, the area has become well known for its backcountry operations that directly rely on the Hurley River Road catering to the majority of clients coming from the Lower Mainland and Whistler.

2.3 Regional Demographics Trends

The SLRD is comprised of four electoral areas (A, B, C, D) and includes the communities of Gold Bridge, Bralorne, Gun Lake, Tyaughton Lake, Pavilion, Texas Creek, Seton Portage, D’Arcy, Birken, Pinecrest/Black Tusk Village, Upper Squamish, Ring Creek, Furry Creek, Britannia and Porteau Creek. The four member municipalities include Squamish, Whistler, Pemberton and Lillooet. Portions of two timber supply areas fall within the Regional District including the Soo Timber Supply Area and the Lillooet Timber Supply Area.

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Page 4 Bridge River Valley Table 1: Squamish-Lillooet Regional District, Population Distribution (2001) Economic Development Society & Squamish- Area Population % of SLRD Lillooet Regional District Squamish 15,584 41.9 Whistler 9,965 26.8 Lillooet 2,977 8.1 Pemberton 1,772 4.77 A Cost-Benefit Assessment of the Hurley Rest of Region 6,833 18.4 River Road Serving Whistler, Pemberton and Total Region 37,131 100 Lillooet, BC Table 1 articulates upon the population distribution in 2001. Squamish has the largest population base with almost 16,000 people followed closely by Whistler nearing 10,000 permanent residents. Lillooet’s population is close to 3,000 and Pemberton is home to almost 1,800 people. Another 6,800 people live throughout the region in smaller remote communities. The Upper Bridge River Valley falls within this category.

Population growth

The SLRD has been the fastest growing regional district in BC. Some of the factors driving growth include:

? The growth of Whistler as a year round, international destination resort ? Increasing number of people moving from larger urban centers ? The lifestyle advantages of smaller coastal and mountain communities ? Affordable housing options in the SLRD as compared to the GVRD ? Increasing demand for recreational amenities and opportunities

The rate of growth in the SLRD has consistently been almost double that of the provincial average. Over the past ten years, the area has witnessed an average population growth per annum of approximately 4.7% (compared to 2.6% for the province), 3.6% over the past 5 years (more than double the provincial growth rate at 1.5%) and 2.3% in 2001, significantly higher than the provincial growth rate of .9%.

According to BC STATS, strong sustained growth is expected for the region with the population expected to double in size over the next 25 years. These demographic trends and growth rates pose tremendous implications and opportunities for established municipalities as well as smaller communities that offer lifestyle, affordability and recreational opportunities.

2.4 Regional Economy

Similar to many other BC communities, direct involvement in resource extraction has fuelled population growth and the development of the region. Over time, local economies have expanded to include secondary manufacturing and new commercial

7224701.1 / September 2002 development – often predicated by the development of recreational opportunities Q:\spetrie\HURLEY RIVER ROAD FINAL.doc and tourism amenities. As Table 2 indicates, income dependency throughout the Page 5 region has matured from its resource extraction routes. Currently, tourism comprises Bridge River Valley the largest part of the regional economy accounting for 23% of income dependency Economic Development followed closely by the public sector (22%) and forestry (16%). Society & Squamish- Lillooet Regional District Table 2: SLRD, Income Dependency by Sector, 2001

Sector SLRD BC Forestry 16% 20% A Cost-Benefit Mining 0% 5% Assessment of the Hurley Fishing and Trapping 0% 1% River Road Serving Agriculture 1% 2% Whistler, Pemberton and Lillooet, BC Tourism 23% 7% Public sector 22% 24%

Table 3: Local Health Areas, Income Dependency by Sector, 2001

Sector Lillooet Howe Sound Area Forestry 29% 14% Mining 0% 0% Fishing and Trapping 0% 0% Agriculture 2% 1% Tourism 7% 25% Public sector 30% 20%

Despite the diversification of the economy at the regional level, the data does not reveal the discrepancies of various areas (communities, electoral areas) throughout the SLRD that reveals their true susceptibility to market instability and economic decline. As Table 3 highlights, there exists significant differences between local health areas (See Figure 2) in the SLRD in terms of dependency on resource extraction and the emerging tourism economy. While the Howe Sound area (Pemberton, Whistler and Squamish) has faired better, the Lillooet district is still largely reliant on forestry as its primary economic base.

Tourism and Recreation

Tourism contributes significantly to provincial revenues. In 1991, it is estimated that the industry generated $9.2 billion (provincially) representing an increase of 5% from the previous year. It is estimated and well known that tourism activities based in and around the SLRD contribute significantly to the provincial economy.

The Resort Municipality of Whistler is a major draw for tourism and recreational activities throughout the district. There are approximately 200 companies that provide outdoor recreation opportunities including river rafting, backcountry activities, biking, golfing, and glacier skiing. In addition, Whistler sees 2 million skiers each year, is currently the largest ski resort in North America and is a year round destination with summer occupancy rates exceeding winter rates.

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V H V IT uilometers IXVHHDHHH €rep—red2˜yX h—teX2ƒeptem˜er2PHHP Bridge River Valley The Duffey Lake Corridor between Pemberton and Lillooet and the Hurley River Economic Development Road between Pemberton and Gold Bridge offers some of the best mountain Society & Squamish- adventuring in all of southwestern BC. The area’s Heli skiing is ranked 2nd in North Lillooet Regional District America and is world reknown for its snowmobiling, hiking and mountain biking terrain. In addition the Southern Chilcotin region, some of which falls in Electoral Areas A & B is becoming increasingly popular as a destination for recreational users originating from Whistler and the large population centers in the Lower Mainland region. A Cost-Benefit Assessment of the Hurley Forestry River Road Serving Whistler, Pemberton and Historically, forestry has comprised a significant part of the regional economy with Lillooet, BC logging activity beginning as early as the 1890’s. Forestry continues to be an important sector throughout the region as underscored by the areas income dependency statistics in the SLRD. Forestry employment is largely through harvesting and silviculture activity, processing of solid wood and pulp and paper manufacturing. Recently the local forest industry has been impacted by major international issues such as the economic slowdown in Asian countries and the softwood lumber dispute with the United States.

Within the region, the forest industry is particularly important to Squamish, Pemberton and Lillooet. In the Squamish area there are two large mills, the Western Pulp Limited Partnership Pulp mill at Woodfibre and INTERFOR’s sawmill at Squamish plus eleven smaller mills in the region. These smaller specialty sawmills contribute to the value added sector by using high quality wood and produce high end products, often customized for the client.

In the Lillooet area, the Ainsworth lumber company Limited veneer plant is a major processing facility that serves as a backbone to the community. Throughout this region, there is also commercial harvesting of non-timber forest products including pine mushrooms, salal and other floral greenery.

2.5 Regional Economic Issues

While the overall economic picture is brightening for the region, many communities are facing challenges to diversifying their local economy. These include:

? Inadequate Transportation Infrastructure

One of the most significant factors affecting the potential and development of the regional district is the insufficient transportation infrastructure in place or planned to meet anticipated growth rates, development patterns and economic patterns. While transportation needs vary throughout the region, it is clear that action is required to ensure the effective movement of people and goods.

? Single Industry Dependence

While income dependency is diversifying throughout the region, many smaller communities continue to rely heavily on a single industry. If that one industry declines, the community can be profoundly affected.

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Page 8 Bridge River Valley ? Insufficient Local Employment Economic Development Society & Squamish- Employment opportunities are not balanced throughout the many communities in Lillooet Regional District the region. Subsequently, many residents commute to work places outside of the region. This affects the overall economic viability of the communities upon which they live as well as the ability for cost effective service delivery.

? Limited Tax Base A Cost-Benefit Assessment of the Hurley The preponderance of residential development throughout the region limits tax River Road Serving revenues. More commercial/industrial development is needed to meet residents Whistler, Pemberton and expectations with respect to service delivery. Lillooet, BC 2.6 Summary

While the Upper Bridge River Valley has undergone a slow transition towards tourism-based activities, the area still faces many economic development challenges. Part of these challenges include transportation infrastructure, which is seen as a vital link to addressing other development issues. As such, any consideration to reclassify the Hurley River Road must remain aware of its significance to the future development of the area and its ability to help remedy development challenges.

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Page 9 Bridge River Valley 3.0 BRIDGE RIVER-LILLOOET AREA Economic Development Society & Squamish- 3.1 Population Lillooet Regional District Smaller communities throughout the SLRD have not witnessed the economic benefits of the tourism industry to the same extent as has Whistler, Squamish and Pemberton. In fact, the population of the Bridge River Lillooet Area has decreased significantly over the decades. A Cost-Benefit Assessment of the Hurley Before the Cariboo Wagon Road River Road Serving through the Fraser Canyon was Whistler, Pemberton and completed in the 1860’s, it has Lillooet, BC been said that Lillooet was the largest settlement North of San Francisco with a population approaching 8,000 people. In the 1940’s and 1950’s there were 4,000 people living in the Bralorne- Gold Bridge Area when the mines were in full operation. With the new road (Road #40), rail links and the completion of hydroelectric development, the future had promise. Unfortunately, a history of resource dependency, market volatility and a slow transition into recreation and tourism-based activities has not allowed the region to achieve its full potential. In part, this can be attributed to inadequate transportation access in and throughout the region.

Today, the Bridge River- Lillooet region has approximately 3,670 inhabitants. While there has been some moderate population growth in Lillooet, population continues to decline in the Upper Bridge River Valley, where it numbers only 250 full time residents and approximately 400 in summer months.

3.2 Economy of Bridge River Lillooet Area

Today, the regional economy remains primarily resource based with heavy reliance on the forest industry. As the income dependency statistics indicated approximately 29% of total income is derived from forestry related activity. Most recent unemployment statistics reveal an average unemployment rate of 6.7%.

However, with the gradual expansion of Whistler’s “sphere of influence”, the area is increasingly home to recreational property owners and a number of operations specializing in backcountry adventures. While the extension of HWY 99 has had positive impacts and supported increased tourism revenue in the region as whole, poor access to the Upper Bridge Rive Valley has limited development.

3.3 Challenges of the Region

Despite the SLRD’s recent upswing, a number of specific challenges still face the region as it works towards improving the strength of local communities and the general economic health of its population base. These include:

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Page 10 Bridge River Valley ? High Unemployment Economic Development Society & Squamish- Unemployment is higher than the provincial average and dependency on social Lillooet Regional District assistance programs in the Bridge River Valley remains high. In large part, this is a result of a history of resource dependency, and a slower transition into more sustainable economic activity than other parts of the region.

? Lack of Skilled Workers A Cost-Benefit Assessment of the Hurley There is concern about available workers and the skill set that is required to meet River Road Serving new opportunities as the area begins to experience growth and economic Whistler, Pemberton and development opportunities. Lillooet, BC ? Supply of Capital

The region lacks pools of investment capital to support branding initiatives and local improvements that would help stimulate local economic activity.

? Senior Government Offloading

As federal and provincial governments curtail spending to reduce debt servicing costs, local communities assume more responsibility. With limited supplies of investment capital, a declining industrial tax base, it becomes extremely challenging to find the necessary resources to assist in marketing campaigns and investment strategies that seek to attract new investment and diversify the local economy

? Inadequate Industrial Tax Base

A lack of serviced industrial land coupled with inadequate industrial tax base means that local and regional governments find it difficult to finance community and recreation facilities and services. In large part, inadequate service delivery in conjunction with difficult economic circumstances have contributed to the decline of this population base and migration patterns.

? Out Migration of Youth

High youth unemployment and the low level of job creation in the region means that there are fewer job opportunities for new labour force entrants. Subsequently, the area has witnessed an out migration of youth to large urban centers offering better service delivery and employment opportunities.

3.4 Summary

The Upper Bridge River Valley faces a number of challenges predominant throughout many communities in transition throughout the province. The area has witnessed the traditional issues associated with resource dependency including population decline, limited supply of capital, high unemployment levels and lack of regional investment in branding and marketing strategies.

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Page 11 Bridge River Valley Nonetheless, the transition and demographic trends of the SLRD pose Economic Development immense potential to transform the valley’s economic base and build on Society & Squamish- the emerging recreational and tourism development in the region. This is Lillooet Regional District signified by the recent emergence of backcountry operators in the area and the increasing investment in recreational property. However, it is critical that continual investment in the regions transportation infrastructure is maintained in order to adequately address the increasing demand in these sectors for well-maintained and convenient access. A Cost-Benefit Failing to do so threatens to stem the growth and development that has Assessment of the Hurley occurred in these sectors and any of the benefits potentially accrued to River Road Serving the region and the province. Whistler, Pemberton and Lillooet, BC

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Page 12 Bridge River Valley 4.0 HURLEY RIVER ROAD PROFILE Economic Development Society & Squamish- 4.1 Purpose Lillooet Regional District The purpose of this section is to outline the changing nature of the Hurley River Road in the context of the region’s demographic trends and economic situation outlined in the previous sections. Although designated a Forest Service Road, its role and function has progressed over time and now serves as a vital link and the A Cost-Benefit economic backbone of the Upper Bridge River Valley. Any consideration to Assessment of the Hurley downgrade or reclassify the road must look beyond its existing use and consider its River Road Serving evolution over time and the opportunities the road will serve for the future of the Whistler, Pemberton and Upper Bridge River Valley and the entire SLRD. From this perspective, one can begin Lillooet, BC to understand some of the implications of the proposed reclassification and its opportunity costs.

4.2 A Brief History

Travelling throughout the Bridge River Valley has always been a challenge both in the past and at present. Native trail networks were rough and impassable in bad weather, and early access to the region by prospectors was via the Fraser River and a long portage over Mission Mountain. Up until the 1950’s transportation was difficult until BC electric constructed a road to access the Terzaghi dam. In the 1980’s this road was known as Carpenter Reservoir Road was partially seal coated and is now known as Road #40 (Lillooet- Pioneer Highway).

The most direct route to the Lower Mainland, however, has been and remains the Hurley River Road. This link was originally cut through the mountains by forestry companies in the early 1970’s and offers a direct route south from Gold Bridge to Pemberton Meadows. As mining and forestry declined in the region throughout the 70’s and 80’s so did the industrial use of the road, although vehicular traffic has increased.

However, as the provincial economy has undergone economic restructuring and the health awareness has become an increasing lifestyle trend, the area has slowly transformed with the arrival of several resort operators offering guided backcountry operations ranging from helicopter skiing to mountain biking. As such, the Hurley River Road, built to access the area’s timber resources at one time has now facilitated the gradual diversification of the local economy. For this reason, serious consideration needs to be given to the proposed reclassification to wilderness standards for it poses significant costs for the region and the provincial government.

4.3 Changing Times and Changing Use

In the past ten years, traffic data suggests the road is of increasing importance to both visitors and residents of the region.

Table 4: Hurley River Road, Traffic Volume (1993 & 1999)

Year Avg. No. Vehicles Per Day Total Vehicles (May-Sept) 7224701.1 / September 2002 1993 16 1,920 Q:\spetrie\HURLEY RIVER ROAD FINAL.doc 1999 144 17,280 Page 13 Bridge River Valley MOT data collected in 1993 revealed that during the summer months approximately Economic Development only 16 vehicles per day utilized the road. However, as recreation and tourism Society & Squamish- opportunities have increased in the region and the growth of Whistler’s sphere of Lillooet Regional District influence has spread, the absolute increase in road use has been astounding. In less than ten years, average daily use has increased over 900 % with approximately 18,000 vehicles utilizing the Hurley River Road during the months of May to September (Data collected by Bridge River Economic Development Society).

A Cost-Benefit Safety Assessment of the Hurley River Road Serving If maintenance of the Hurley River Road is terminated then it is safe to assume that Whistler, Pemberton and Road # 40 will provide the only access to the Bridge River Valley. Since 1960, there Lillooet, BC have been about 40 fatalities over the 100 km distance of Road # 40. While recent advancements have been made by the MOTH and local government to improve the current situation, residents have often utilized the Hurley River Road as a safer alternative.

While of a lesser standard, residents and visitors have said that the Hurley River Road offers a safer, more convenient alternative than Road # 40. With recent cutbacks and decreased maintenance of the road, two motor vehicle accidents on the Hurley have highlighted the potential implications of continued use of a road not adequately maintained.

Accessibility

In its simplest form, the Hurley serves as the safest, most direct route for accessing other major centers throughout the region including Pemberton, Whistler, and the Lower Mainland (See Figure 3). The availability of the Hurley substantially increases access to and from these major population centers. Residents living in the Bridge River Valley have suggested that 65% of trips generated to and from the region are generated by these population centers. Resort operations are at risk if access is not maintained.

Emergency Access

Lastly, the road serves a vital corridor point for emergency management purposes. As the only other alternative is via Road # 40, the Hurley River Road serves as the only secondary link. Steve Newton, fire protection officer for the MOF Lillooet, has said that the forest fire danger in this region is extremely high and that the need for emergency access is critical. In addition, considering the increasing importance of recreational operators, and backcountry opportunities throughout the region, the route is becoming increasingly important as an emergency access corridor should Road #40 become impassable.

4.4 Recreational Operations and the Hurley River Road

In addition to the basic rationale behind the region’s access requirements, the road is critical in serving development of the local tourism economy and recreational opportunities.

The Upper Bridge River Valley is provincially significant for both public and 7224701.1 / September 2002 commercial recreation because of its landform and climatic diversity, its relatively Q:\spetrie\HURLEY RIVER ROAD FINAL.doc

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S H S IH uilometers q—ri˜—ldi IXSHHDHHH €rep—red2˜yX €rovin™i—l2€—rk h—teX2ƒeptem˜er2PHHP Bridge River Valley high proportion of backcountry recreation opportunities and its proximity to the Economic Development Whistler and the Lower Mainland. The quality and variety of recreational Society & Squamish- opportunities is a direct result of the variety of settings (rivers, lakes, forests, Lillooet Regional District mountains) combined with available amenities at large and smaller service centers throughout the area.

The wide range of recreational experiences available in the Upper Bridge River valley (See Figure 4) includes motor touring, fishing, boating, canoeing, kayaking, A Cost-Benefit swimming, camping, hunting, heliskiing, horseback riding, mountain biking and Assessment of the Hurley scenic viewing, snowmobile, and heliskiing to name but a few. River Road Serving Whistler, Pemberton and Resort operators offering a variety of activities in this area include the following: Lillooet, BC ? Chilcotin Holidays ? Highland Cream Resort ? Morrow Chalets ? Mountain Lake Rentals ? Spruce Lake Wilderness adventures ? Tyax Mountain Lake Resort

Together, these operations draw thousands of visitors during the summer months and generate approximately over $3 million in revenue. This accounts for approximately $225,000 in provincial revenue (sales tax) and also results in a variety of spin off for local businesses in Gold Bridge and Bralorne. This includes a number of hotels and motels as well as grocery store.

In addition, as the influence of Whistler has spread throughout the area operators from Whistler are increasing utilizing the Upper Bridge River Valley for a variety of tours. These include the pristine mountain biking and backcountry adventures market that is gradually creeping towards Pemberton, the Duffey Lake corridor and the Upper Bridge River Valley.

Accessibility Requirements

The Hurley River Road is critical to the long-term viability of these operations. Predominantly, resorts and backcountry operators are catering to the Lower Mainland market and the larger population centers found throughout the HWY 99 corridor. The Hurley River road provides the shortest and safest route from the Bridge River Valley to Pemberton, Whistler and the Coast. Its use is underscored by its 900 % increase in vehicular traffic over the last ten years and the increasing predominance of backcountry operators in the region. The loss of the Hurley would not only pose serious implications for existing operations but seriously curb the future economic development of the tourism and recreation industry throughout this 7224701.1 / September 2002 Q:\spetrie\HURLEY RIVER ROAD FINAL.doc area.

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S H S IH uilometers q—ri˜—ldi IXSHHDHHH €rep—red2˜yX €rovin™i—l2€—rk h—teX2ƒeptem˜er2PHHP Bridge River Valley 4.5 The Lillooet Land and Resource Management Plan Economic Development Society & Squamish- In direct relation to the issue at hand, the LLRMP addressed access management Lillooet Regional District issues, transportation policy, recreation and tourism concerns. Upon reviewing the draft version, it is evident that the recent consideration of downgrading the Hurley River Road is in direct contrast to the principles articulated in the plan. As the process was initiated by the provincial government and the most recent version revised by the current provincial government, it is hoped that closer review of its A Cost-Benefit policies by appropriate agencies will underscore the significance of the Hurley River Assessment of the Hurley Road to the region and highlight the inconsistency of the recent MOF decision with River Road Serving respect to provincial, industry, environmental and local desires. Whistler, Pemberton and Lillooet, BC 4.6 Summary

The Hurley River Road is critical for the revitalization and strengthening of the regional economy in the Bridge River Valley. As the area is currently in a state of transition, the road is the vital link to large population centers. Whether it is for basic access requirements or a weekend getaway, the road makes a backcountry weekend trip to the region feasible. Ultimately, it is this ease of accessibility, in conjunction with area’s pristine backcountry that makes this road truly significant to the future of the region.

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Page 18 Bridge River Valley 5.0 IMPLICATIONS OF RECLASSIFICATION Economic Development Society & Squamish- 5.1 Purpose Lillooet Regional District As the previous section has documented the transitory nature of role and function of the road, the purpose of this section is to outline some of the potential implications of the proposed reclassification on current activity throughout the area. In doing so, it will help in painting the picture of the potential impacts on established operators A Cost-Benefit and communities and briefly articulate the revenue and opportunity costs for both Assessment of the Hurley the region and the province as a whole. River Road Serving Whistler, Pemberton and 5.2 Tourism and Recreational Development Lillooet, BC Tourism is an important industry in the provincial economy and the Upper Bridge River Valley. As the 1995-1996 BC Visitor study has documented, visitor revenue throughout this region (East to Hope, North to Cache Creek, West to Strait of Georgia) accounted for 3.41 billion or 39% of the tourism revenue generated throughout the entire province. While the Vancouver area captured the majority of this revenue (2.085 billion), the Sea to Sky corridor remained critical in revenue generation for the regional economy. While Whistler accounts for 500 million dollars, the remainder of the region generates approximately 300 million annually in tourism revenue.

Table 5: Visitor Revenue in the Vancouver Region (1995-1996, Billions)

Area Gross Tourism Revenue % of Region Vancouver region 3.41 billion ---- City of Vancouver 2.68 billion 78.5% Whistler .5 billion 14.6% Rest of Region .3 billion 6.1%

In the Upper Bridge River Valley, tourism revenue has gained a significantly important role in the regional economy with the restructuring of resource based industries and the increasing awareness of the areas recreational amenities, and lifestyle opportunities. The most significant resort operation (Tyax) in the area generates approximately 2.1 million dollars in revenue annually. In provincial sales tax and accommodation tax, this one resort operation accounts for approximately $145,000 in provincial revenue per annum.

While other operators are not of the same scale and magnitude of Tyax Lake Resort, it is assumed that tourism generates at least 3 million dollars in revenue in the Upper Bridge River Valley. With this revenue comes intangible benefits and 7224701.1 / September 2002 associated spin off effects throughout the region. Q:\spetrie\HURLEY RIVER ROAD FINAL.doc

Page 19 Bridge River Valley While this represents a conservative estimate, direct benefits accrued by the Economic Development province each year from this revenue (sales, accommodation taxes, fuel taxes) Society & Squamish- would approach approximately $300,000 based on the conservative estimate of 3 Lillooet Regional District million dollars in gross visitor revenue per annum.

As business grows in the region, so too will benefits accrued to the province. However, if the Hurley River Road ceases to become a viable route there will be a reduction of the viability of these industries and the direct provincial revenue A Cost-Benefit obtained from operators in this area. Assessment of the Hurley River Road Serving Conservatively, operators in the region estimate that revenue would most likely Whistler, Pemberton and decline by 30% during peak times and over 40% during the shoulder season (May & Lillooet, BC Sept). As such, a modest estimate would see tourism revenue decline to about 2 million per annum with little opportunity for growth. Provincial revenue would likely decline at a minimum of $100,000 per year. As access became more limited due to the decline of the wilderness standard, it is likely that provincial revenues and the economic viability of the region would decline accordingly.

5.3 South Chilcotin Mountains and Gwyneth Lake Provincial Park

In relation to this, is the lost opportunity to maximize the current public investment in the South Chilcotin Mountains Provincial Park. Although the boundaries are currently under review, the Park represents a significant investment that will attract domestic and international visitors to the region resulting in economic benefits. However, maintaining access will remain critical to ensure that tour companies and other operators can easily travel to the park while taking in other destinations. The province is also establishing a new provincial park at Gwyneth Lake for camping and fishing. If the Province is going to realize any economic benefits from the designation of these parks, it is critical that the Hurley River Road access be maintained and upgraded.

5.4 Property Assessment Values and Provincial Revenue

As profound as the effect would be on local business, the assessment value of property classes throughout the region would be adversely affected by the decision to reclassify the Hurley River Road. At present, property assessment in the area that the Hurley offers the most direct access is estimated at approximately $50 million. This assessment base accounts for approximately $370,000 in provincial tax revenue per annum.

A conservative estimate would see property values decline by approximately 20%, which would pose a significant impact on provincial tax revenues. With this reduction in assessment base, it is estimated that the province stands to lose $74,000 per year in tax revenue. 7224701.1 / September 2002 Q:\spetrie\HURLEY RIVER ROAD FINAL.doc

Page 20 Bridge River Valley 5.5 Crown Land Marketability and Revenue Economic Development Society & Squamish- LWBC has embarked upon an aggressive revenue generation program in order to Lillooet Regional District meet targets set for the corporation over the next three fiscal years. Within LWBC’s Lower Mainland region, a major focus for revenue is the Squamish Lillooet Regional District, specifically areas where market demand for recreational property is high and availability of Crown land limited. One such area is the Upper Bridge River Valley. A Cost-Benefit Assessment of the Hurley Increasingly, waterfront and view properties around the lakes in the region have River Road Serving become attractive as recreational or retirement property. Inspired by the natural Whistler, Pemberton and backdrop, affordability and proximity to the Lower Mainland, the area possesses the Lillooet, BC unique potential for LWBC to target the release of crown land working towards the attainment of their revenue generation objectives.

A critical factor to any recreational or retirement property investment is access. The Hurley River Road currently provides access to the recreational property throughout the region. It is the most direct, safest route to larger population centers in the Sea to Sky Corridor and Lower Mainland region. In large part, retaining this level of service is critical to ensuring not only economic growth but also the viability of the property market when the decision is made to release specific crown lands.

Although the assessed value of land to be released is unknown, diminished transportation infrastructure will have an effect on provincial revenues to be obtained from the sale of Crown Land. This includes:

? Depreciated assessment value of property with limited access ? Decreased viability of crown land in recreational property market ? Decrease in provincial revenue form basic taxes ? Inability of transportation infrastructure to support new land use

In short, if Hurley River Road is downgraded, this will greatly hinder the ability of LWBC to market and dispense of its properties in the region. It is estimated that at a minimum, the Province would stand to lose $100,000 per annum in crown land sales.

5.6 Community Development

In addition to the more quantifiable economic impacts, are the intangible effects the proposed reclassification implies for the future development of the communities of Bralorne and Gold Bridge. Rich in history and culture, the very existence of these communities is threatened if they simply become the ‘end of the line’ so to speak. These communities have displayed resilience, gripped by resource dependency at various point throughout history. They are at a defining point in their existence. The Hurley River Road is critical to ensuring that not only basic access requirements to the region are retained, but that it will allow them to progress along their continuum to grow and expand and become revitalized.

In this regard, one can make the argument on a number of fronts for the economic rationale to maintain the Hurley Road, but at the community level it is also vital. The 7224701.1 / September 2002 continued maintenance and potential improvement of the Hurley presents the Q:\spetrie\HURLEY RIVER ROAD FINAL.doc opportunity for these communities to achieve an alternative future working towards: Page 21 Bridge River Valley ? A diversified and healthy local economy Economic Development ? Sustainable infrastructure and environmental integrity Society & Squamish- Lillooet Regional District ? Watershed integrity and natural biodiversity ? Quality of life

These principles are not mutually exclusive. For one to be achieved, then other conditions must be met. As most of this discussion has carefully articulated, the Hurley River Road is vital in this respect and to the future development of A Cost-Benefit communities in the region. Assessment of the Hurley River Road Serving Whistler, Pemberton and 5.7 The Hurley River Road as a Destination Lillooet, BC Aside from the primary access route to innumerable destination throughout the region as highlighted in this section, the Hurley River Road itself presents the opportunity to become a destination. Its unique geographical setting, proximity to Whistler and increasing reputation for backcountry operations underscores this point. Some features that might be developed along the road that could make it a destination as well as a thoroughfare include:

? A hiking departure point ? A river fly-fishing area ? An interpretive nature centre ? A wildlife observation area ? New resort and recreational development

In short, while the Hurley serves a significant role as a transportation route that is vital to the economy of the region, reevaluating its function and the opportunities it presents also bring more potential to the area.

5.8 Regionalization of Potential Olympic benefits

A key element to reconsidering the decision to reclassify the Hurley River Road is the potential to regionalize the impacts of the 2010 Olympic Bid. Much has been made of the potential economic benefits the games could generate. Factoring in the Vancouver Convention and Exhibition Center, it is expected that hosting the Olympics will generate up to 10 billion in net economic activity and create up to 228,000 jobs and raise more than $2 billion in provincial, federal and local taxes. A key element form the provincial perspective is to regionalize the impact of the 2010 Olympic Bid, a duty given to the Legacies Now Society. Yet for all the talk of the economic benefits of the Olympics and this primary objective of the society, little discussion has focused on just how to regionalize the potential benefits of the Olympics.

Downgrading and reclassifying the Hurley River road will not assist in the ‘regionalizing’ the potential economic benefits from the Olympics. Rather, the momentum gained in the region from tourism and recreational development will be 7224701.1 / September 2002 lost. In short, ease of access and inadequate transportation infrastructure will simply Q:\spetrie\HURLEY RIVER ROAD FINAL.doc not suffice to extend these benefits beyond Pemberton. Page 22 Bridge River Valley Economic Development 5.9 Summary Society & Squamish- Lillooet Regional District The reclassification of the Hurley River Road poses serious implications for the Bridge River Valley and the communities found within it. At the most basic level, elimination of its service will have taken the most convenient, safe and accessible route from residents and visitors to the region. Over the time the areas economic base has slowly diversified to a A Cost-Benefit point where its reputation for backcountry adventures and resort Assessment of the Hurley getaways is well known. The elimination of this route threatens the very River Road Serving viability of these operations and the communities that depend on this Whistler, Pemberton and resource. Lillooet, BC As such, the termination of this service poses numerous opportunity costs for the both the region and the provincial government. Most notably, a decrease in economic activity poses significant reductions in provincial revenue through taxation. Similarly, decreased assessment values in and around the region will mean a reduction in provincial taxation revenue. Lastly, any hope to regionalize the benefits of the 2010 Olympics to the Upper Bridge River Valley will have been lost.

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Page 23 Bridge River Valley 6.0 CONCLUSION: A CASE FOR THE HURLEY Economic Development Society & Squamish- This paper concludes that if the Hurley Pass Road were downgraded to a wilderness Lillooet Regional District standard, the costs would far outweigh the benefits. Indeed, this paper suggests that the province and the local area would stand to gain substantial returns if the Hurley River Road were upgraded.

Table 6: Cost-Benefit Assessment of Proposed Reclassification A Cost-Benefit Assessment of the Hurley Benefits of Reclassification Costs of Reclassification River Road Serving ? $65,000 year maintenance budget ? $100,000 net loss in provincial taxes Whistler, Pemberton and (PST, fuel tax, accommodation tax) Lillooet, BC ? $74,000 net loss in property taxes ? $100,000 net loss in property sales of Crown land

Net Savings - $65,000 Net Costs - $274,000

The rationale for this conclusion, described in the text of this report, is based on the following.

? Growth and Development of Whistler

The growth and development of Whistler as a destination resort has been spectacular. The Bridge River Valley, accessed by the Hurley River Road, could tap into the success of Whistler in terms of tourism and resort development.

? Population Growth in the Squamish-Lillooet Regional District

The Squamish-Lillooet Regional District has been the fastest growing regional district in the province. The Upper Bridge River Valley has an opportunity to capitalize on this growth.

? Increased Traffic Volumes on the Hurley River Road

The use of the Hurley River Road has increased significantly. In 10 years, traffic counts have increased 900 %. There is every indication that demand for the road will continue to increase.

? Safety and Access Requirements

The Hurley River Road provides an alternate route and improves safety and access for emergency management.

? Maintaining and Increasing Provincial Revenues

If access via the Hurley River Road is curtailed, the province stands to lose significant revenues in terms of property, sales and room revenue taxes. The amount of this reduction greatly exceeds the saving in road maintenance if the Hurley River Road were downgraded to a wilderness standard. 7224701.1 / September 2002 Q:\spetrie\HURLEY RIVER ROAD FINAL.doc

Page 24 Bridge River Valley ? Supporting the Lillooet Land and Resource Management Plan Economic Development Society & Squamish- The Lillooet Land and Resource Management Plan identifies the Hurley River Road Lillooet Regional District as a critical access point for the movement of resources and people and the social and economic development of the area. This provincially initiated plan calls for the upgrade of the Hurley River Road, rather than the downgrading which is currently being contemplated.

? A Cost-Benefit Supporting Land and Water BC’s Revenue Objectives Assessment of the Hurley River Road Serving Land and Water BC Inc., a provincial crown corporation, is currently investigating Whistler, Pemberton and the sale of Crown Land for recreational and resort purposes. These sales could Lillooet, BC represent millions of dollars in revenue for the province. Any reduction in maintenance of the Hurley River Road would jeopardize these land sales.

? Access to South Chilcotin Mountains and Gwyneth Lake Provincial Parks

The new South Chilcotin Mountain and Gwyneth Lake parks represent a significant provincial investment. The principal access point to these parks will be from the Hurley River Road. Any downgrading of the road would reduce access to these parks as well as the tourism and development activity associated with their designation.

? Regionalizing the Benefits of the 2010 Olympics

The 2010 Winter Olympics promises to provide significant economic, tourism, recreation and transportation benefits to the province. Any efforts to capitalize on the Olympics are dependent on the Hurley Pass Road providing access to the Upper Bridge River Valley from the Whistler-Pemberton Area.

In sum, if the Hurley River Road were downgraded, not only would it jeopardize existing businesses, it would result in a net loss of revenue to the Province of British Columbia. As important, however, is the potential that this region offers. With the substantial growth of the Whistler area and the increased use of the Hurley River Road, this area offers incredible opportunity. Together, these factors combine to warrant that:

? MOT take responsibility for the road; ? Current maintenance levels should be maintained; ? Gradual improvements of the road be undertaken.

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