Sep 22: Council declines Woodfibre LNG tax deal, four tax exemptions

Unofficial summary · Not affiliated with the District of Squamish · 8-minute read · View in browser
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At a glance
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Meeting: Special Business Meeting, Tuesday, September 22, 2026, 6 p.m.
Length: about 1 hour 15 minutes, including a short recess
Watch: Full video on YouTube · Agenda and reports: District of Squamish Council portal
This is a catch-up issue on a September meeting. Where later meetings have moved an item forward, we say so under "Following up".
Key decisions
CARRIED · Woodfibre LNG financial arrangement declined
Council passed a motion to decline approval of the proposed financial arrangement with Woodfibre LNG: the Revitalization Tax Exemption (Woodfibre LNG) Bylaw No. 3273, 2026 and the community enhancement payment agreement (agenda item 3.A(v)). Woodfibre LNG will continue to be taxed under the regular property tax system.
Vote: carried. Opposed: Councillors Andersen and French. Moved by Councillor Stoner, seconded by Councillor Greenlaw.
THREE READINGS · Three permissive tax exemption bylaws
One-year 2027 exemptions for the Squamish Helping Hands Society (its overdose prevention site), the Squamish Search and Rescue Society and the Squamish Sikh Society (the parking lot portion of its property). Each was voted on separately.
Vote: Helping Hands and Search and Rescue unanimous; Sikh Society carried. Helping Hands moved by Councillor Stoner, seconded by Mayor Hurford; Search and Rescue moved by Mayor Hurford, seconded by Councillor Hamilton; Sikh Society moved by Councillor French, seconded by Councillor Pettingill.
THREE READINGS · Golf club permissive tax exemption bylaw
A one-year 2027 exemption for the Squamish Valley Golf and Country Club, under its lease with the District. Councillor Andersen declared a conflict of interest as a member of the affiliated curling club and left for this item.
Vote: unanimous among members present. Moved by Councillor Stoner. On the video the seconder is named as Councillor Hamilton; the adopted minutes record Mayor Hurford.
Recorded votes
Votes where members of council did not all agree. Unanimous votes are not listed.
- Declining the Woodfibre LNG financial arrangement: carried. Opposed: Councillors Andersen and French. Councillors Stoner, Hamilton and Pettingill and Mayor Hurford said in debate they would support the motion, which Councillor Greenlaw seconded.
What was discussed
Permissive tax exemptions
- The director of financial operations said a permissive exemption covers all property taxes, municipal and other, and shifts them to other taxpayers. Four applications from this year's intake were eligible. Staff recommended one-year terms so similar organizations' exemptions all expire at the end of 2027. Watch at 0:09:10
- A councillor noted that provincial rules allow these exemptions only for non-profit and religious organizations, not for-profit businesses; staff confirmed. Councillor French asked why one-year terms were recommended. Watch at 0:12:14
- On the Sikh Society's parking lot, a councillor said a conversation should open next year with faith-based organizations about using their parking lots for people living in vehicles. Mayor Hurford said the one-year term was appropriate. Watch at 0:14:35
- On the golf club, a councillor noted the lease dates back almost two decades and can be renegotiated in 2029. Mayor Hurford said the support was to follow through on that commitment but that another process may be more appropriate in future. Watch at 0:17:27
The proposed Woodfibre LNG arrangement
- The CAO said Woodfibre LNG is expected to become the District's largest industrial taxpayer. Talks began as far back as 2015 and resumed in earnest in December 2025. The proposal had two parts: a community enhancement payment agreement and a revitalization tax exemption bylaw. Both had to be approved before October 31 to take effect in 2027. Watch at 0:26:45
- The payment agreement would have paid $117 million over 10 years from 2027, front-loaded but not indexed to inflation, for capital projects only. The tax exemption would have capped municipal property tax at $2.5 million a year, rising with the Consumer Price Index from 2028 (at least $25 million over the term). School and regional district taxes were not affected. Together: at least $142 million. Watch at 0:37:08
- Other terms staff described: the arrangement stays with the property if ownership changes, gives no naming rights, ends after 10 years with no automatic renewal, and the exemption could be revoked if payments are missed. Watch at 0:33:38
- Staff said Woodfibre LNG began legal proceedings against the District in 2025 and 2026 over taxation and other matters; resolving them would be a byproduct of the arrangement, and otherwise the District will defend them in court. Watch at 0:34:50
- The CFO said regular taxation offers flexibility and possibly higher revenue, but less certainty: assessment appeals, legal disputes and provincial rules could lower revenue. The CFO said that under provincial assessment rules, a standard LNG plant producing under 4 million tonnes a year depreciates at 3% a year, while a plant producing 4 million tonnes or more gets a fixed 40% depreciation for 15 years, so increased production could lower assessed values and future property taxes. The proposal was made public on August 25 and public comments were attached to the report. Watch at 0:39:24
Questions and debate
- Councillor Stoner asked about timing; staff said the exemption certificate must reach the province by October 31 for 2027. Councillor Pettingill asked about tax rates elsewhere in the province; staff said comparisons are difficult and what is reasonable is council's decision. Watch at 0:48:52
- Councillor Stoner moved to decline, citing payments not indexed to inflation, unfunded capital needs in the 10-year plan, and the risk of the agreement's structure if the company became insolvent. Councillor Stoner acknowledged the decision fell during the election period. Watch at 0:55:20
- Councillor Greenlaw said the deal separates the project's value from its contributions, could set a precedent for other LNG communities and limits future councils. Councillor Hamilton said certainty for one taxpayer shifts uncertainty onto everyone else. Watch at 1:00:52
- Councillor Pettingill said regular taxation is a more open process and questioned using a revitalization exemption for a project already under way, and noted that declining does not mean no tax. Watch at 1:05:42
- Councillor Andersen said the property tax system carries the risks staff described, that remediating the site makes a revitalization exemption suitable, and that a working relationship with the operator matters. Watch at 1:09:05
- Councillor French said the company had given its final offer and that the vote would be against the motion because there was no better agreement available. Mayor Hurford said certainty should come at a premium and the community wanted more control and visibility, and supported the motion. Watch at 1:12:27
Public input
This was not a public hearing, so the public did not address council. Written comments received since August 25 were attached to the staff report. Councillors said most correspondence opposed the deal, and that three former mayors had raised concerns.
Following up
From earlier issues: The 2027 permissive tax exemption bylaws (Sikh Society, Helping Hands, Search and Rescue and the golf club) got their first three readings at this meeting, as expected, and were adopted on October 6. This meeting came before most of the meetings we have covered; still open from those: the Community Forest board's recommendations for two District seats and its operations update (from August 10), whether the golf club lease can be shared with residents, and the pool building condition assessments.
New items we'll watch for:
- Woodfibre LNG's legal proceedings over 2025 and 2026 taxation and other matters: the District will defend them in court; no dates given.
- A conversation with faith-based organizations about parking lots and people living in vehicles: raised for next year's exemption intake.
What's next
- Since this meeting: Budget workshops on September 29 (general fund and library) and October 6 (capital plan), and the general local election on October 17 (in past issues). All four permissive tax exemption bylaws (3275 to 3278) were adopted at the October 6 regular council meeting.
- November 3: The newly elected council's inaugural meeting.
- November 10: Budget workshop pulling the 2027–2036 financial plan together.
- 2029: The golf club's lease with the District ends.
Get involved
- Council meetings are open to the public in person at Municipal Hall or by livestream.
- Residents can write to council on any topic; correspondence on the Woodfibre LNG proposal was shared with council and attached to the agenda.
- The November budget public information night is a chance to weigh in on how property taxes, including from major industry, fund the 2027 budget.
- Agendas, reports and ways to contact council are on the District's council page.
Terms used
CAO: chief administrative officer, the District's top staff member · CFO: chief financial officer · Class 4 / major industry: the property tax class for large industrial sites · Community enhancement payment agreement: a contract under which a company makes scheduled payments to the District · CPI: Consumer Price Index, a measure of inflation · LNG: liquefied natural gas · Permissive tax exemption: a property tax exemption council may choose to grant; the taxes are shifted to other taxpayers · Revitalization tax exemption: a tax exemption a council can offer under the Community Charter to encourage objectives such as redevelopment · Three readings: a bylaw needs three readings and then a final adoption vote to take effect.
Context notes
We check factual figures cited at the meeting against public sources where we can. These notes add context; they are not verdicts on any speaker.
- October 31 deadline (staff): the revitalization tax exemption rules in section 226 of the Community Charter say an exemption certificate does not apply to a year's taxes unless it is issued on or before October 31 of the year before.
- LNG plant assessment (staff): the province's depreciation regulation (B.C. Reg. 53/2016) defines a major LNG plant as one designed to produce at least 4 million tonnes a year, and sets depreciation at 40% from the start of construction through the year operations begin and the following 14 years, then 8 points more each year, up to 80%. Natural gas processing improvements that are not part of a major LNG plant depreciate at 3% for each year of age, also up to 80%. The District's Woodfibre LNG project page gives the plant's production capacity as 2.1 million tonnes a year.
- Context notes on candidates' statements are paused during the election period.
Council Watch Squamish is an independent, unofficial summary of publicly accessible meetings of the Squamish Council. It is not affiliated with or endorsed by the District of Squamish. This summary was generated by AI from an automatic transcript and may contain errors. Watch the linked video for the official record.
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