Province offers $11M for buyouts in Fort McMurray; 38 property owners say they're interested
Jamie Malbeuf | CBC News | Posted: March 17, 2021 1:00 PM | Last Updated: March 17, 2021
Buyouts a long-awaited relief for some; little help to others
The provincial government is offering $11 million to buy out homes in a Fort McMurray flood zone and more than half of the affected property owners are interested.
In December, the Regional Municipality of Wood Buffalo voted to offer buyouts to all property owners in the Ptarmigan Court neighbourhood, which was heavily damaged when the Hangingstone River flooded in April 2020.
There are 69 properties in the zone; 20 are empty lots. The buyouts are expected to cost the province and the municipality about $14 million in total.
Administration said building a berm to protect the flood-prone neighbourhood wasn't feasible.
In an email, Greg Bennett, representative for municipality, said Wood Buffalo has been in contact with 65 of the 69 property owners.
Of those, 38 expressed interest in the buyouts, eight have no interest and three hope to raise the foundation of their mobile homes above flood levels. Homeowners have until May 31 to decide.
For some, the buyouts were long-awaited.
Louis Rondeau has been looking for a buyout since the 2016 Horse River wildfire.
His home on the Hangingstone River was flooded in April 2020.
Now as the municipality installs temporary berms and blocks off roads and trails to protect the community from further flooding, Rondeau is finalizing the purchase of his new home in Okotoks, south of Calgary. He expects to move in mid-April.
"It feels good," Rondeau said. "It's unfortunate; we've spent a lot of time and money on this place and it's a beautiful area."
Rondeau described his home as the "poster child" for the flood, as it is right next to the river and flooded severely, and has little resale value.
Luckily he won't be coming out of the deal with debt, as some residents in the area might, he said.
Rondeau couldn't discuss the specifics of his deal with the municipality, as he's signed a non-disclosure agreement.
He said it's stressful living in the area during spring, because there's always the fear of flooding.
"Now I get to go live the 100-days-of-the-year-fishing dream," he said.
Some though aren't happy with the buyouts as there's no room for negotiation. The municipality is offering the 2020 tax assessment value for the home.
John Wuis said his home is worth far more than the $288,000 being offered.
In 2019 Wuis's home was assessed at $298,000 and the year before at $361,000.
He added that he doesn't believe the process of using tax assessments is fair, as it doesn't account for home upgrades or things like landscaping, both of which Wuis has done.
Not accounting for the work put into the home is "aggravating," he said. "They're rewarding people that … didn't put any grass in. We're talking huge difference in a cost."
Wuis said the assessments are "inaccurate" and the buyouts shouldn't be based on that number alone.
"The buyout is really great for certain people," he said. "The 2020 assessment, I'm $30,000 to $50,000 or $60,000 lower than what I could've sold in 2020 for."
Wuis said he won't be taking the offer, but he worries the municipality will expropriate it anyway.