A Little Background
Prior to 2011, leases were 20 years in length. In 2011 the Chief and Council decided that they wanted to transition to the First Nations’ Land Management Act (FNLMA). This was federal legislation introduced and passed by the Harper government to allow Bands to manage their own leases. It was primarily aimed at bands wanting to enter into longer term leases with oil & gas/timber/mining companies who needed a longer term lease to justify their capital investment.
Saugeen First Nation manages the most land leases of any First Nation in Canada.
There is a considerable amount of work needed to satisfy the Federal Government that the Band is prepared and able to manage their own lands. One we are aware of is bringing all septic systems up to code.
The Chief and Council of the day (2011) decided they could accomplish this within 10 years. At the time this was pretty realistic because of the time it had taken other bands to complete the task. Thus, in 2011, the new leases were set for 10 years (rather than 20) with the expectation that the transition would be completed within that timeframe and our new 2021 leases would be then with the Band and not with the Feds.
It took a few years for Council to actually pull the trigger on beginning the process and more recently Covid19 has caused interruptions and delays in meeting all the requirements needed for the Band to receive approval.
The Chief and Council are now considering an extension of our current leases for an additional 5 years to be sure that they have the time to get this done.
After the Transition to FNLMA
Once the transition is complete we fully expect the new leases with the Band will be for a longer term. How long will be the decision of the then Chief and Council.
Longer Leases?
Since the late 80s SCOI has been asking the Band to consider a 25-year lease. After transition to the FNLMA, we hope to be able to sit with the Chief and Council to discuss a number of changes to the Lease which we believe will be beneficial to both parties. Under the current system we have had no say in the lease which is standard for all federal land leases across Canada.
We believe that longer lease periods will reduce uncertainty and create greater financial stability for cottage owners and the Band. It should encourage cottage owners to maintain and invest in their properties. It should also raise the value of their property and incidentally drive up the lease rate – benefits for both parties.
…Soooo does that mean the lease amount stays as is for the next 5 years????
The answer is no. Your lease (section 5) clearly explains the process by which the lease amount is determined. This happens every 5 years independent of the lease term etc. and will happen again this year.
If you want to see the current lease, please click here.
I continue to really appreciate these updates and the support and diligence the SCOI imparts on behalf of all of us. I do hope that as these conversations continue, there is recognition that as cottagers WE are paying the many thousands of dollars to bring our properties up to these standards, as we all scramble to put in the required septic systems. I believe this is a necessary action (Septic updates), and as the Band determines future lease costs, I hope they are factoring this in as well. We are, in good faith, investing in our property, even though we don’t own it. Ours is one of the 4th – 5th generation cottages, purchased and built by my grandfather in the 40’s. We have seen many iterations of leases and these conversations. It is our ‘happy place’ and we continue to hope we can work together for many more generations.
Does this mean we have longer to complete the septic work than initially communicated. Ie we have 5 more years to complete the work required to come to septic code?
The Band has not given us a definite answer on this yet. So until there is a change, we suggest you assume that May 1 is still the deadline for getting your permit application to the Band.
Is this years lease the same as last? When should we expect any changes? Ty kindly
Our understanding is that we are to receive a 5-year extension to our existing lease. So there will be no changes to the lease except the dates (2021-2026) and the lease amount (which the Band has not yet shared with us).
There will be no other changes to the lease until we get a new lease in 2026. At that time we expect the lease to be with the Band rather than, as at present, with Indigenous and Northern Affairs Canada
I am one of the cottages having to replace my septic tank which is fairly new in great working order but not big enough. I am struggling to get any of the contractors listed to either come out or submit a permit.
As if 3 weeks ago I am on a waiting list. May not get the permit by May 1st according to the contractor. I have emailed the band explaining my situation but no response.
My fear is not getting my lease renewed. Looking for direction.
Thank you
Kim,
It appears you have done all you can do at this time. If you are on a contractor’s waiting list and have notified the Band, all that remains is to wait for the spring thaw so your contractor can come and inspect your existing system to determine what is required. From that (s)he will create a plan and a quote. Once you approve this, it can be sent to Lands with a permit application.
Have the band establihed any restrictions for cottage access similar to last season?
Not beyond those that are already in place. Please refer to our post on Travel from February 15.
Based on the lease is set by land value and everything took a huge jump last year. We might want to be sitting down when it arrives
Just looking for some more clarification. I had asked the question when we will know the new lease amounts?? I was told we would know in February. Tomorrow is the last business day of February. Is there a maximum % the lease is allowing to increase by?? It seems many people are trying to arrange budgets and projects for the spring now an uncertainty around the May 1st permit date. I am unsure of what goes on behind the scenes as far as the Band goes are these decisions only made on a monthly basis at a Band Meeting?? Thank you for the continued communication.
David,
We haven’t heard anything yet. As soon as we hear, we will post it on the website.
Is it a great thing that our cottages have increased in value? Remember in the 90’s when cottage values were high and with a major increase in lease happened (deservedly), cottage values decreased dramatically. The cottage where I own sold for $79,000 in 1979 and I purchased it for $24,000 in 1998. If this where to happen again, there will be many devastated cottage owners who have purchased in the last three to four years. I also hope that consideration is taken with the increase that we have no water, sewage, education opportunities or no year round living opportunities in our cottages .
Tim,
You will see in section 5 of the lease that the appraisers are obliged to account for the things you are suggesting. To see a copy of the current lease, click here.
Question on the hydro increases letter. Can we have someone or several people represent our SCOI membership to be intervenor against these Seasonal hydro increases? We have to have things filed before March 15, 2021 which is not much time.
45+% in billing on property we’ve been locked out of is ridiculous.
Debra,
Our understanding of the Hydro One letter is that the change for cottage owners represents a change in classification and not an increase in seasonal rates. The seasonal category is being discontinued. This will result in a minimal change to our hydro bill and for most it represents a slight reduction. We see no reason to pursue this further.
Any idea on when we will hear something as we are in the middle of March now and concerning the amount will take a substantial jump and not prepared or budgeted for. Also is septics still due by May 1st as I haven’t heard word back from the Band if this is still the case. Friends at Chief’s Point said no as they called but wanted to ensure I am getting the proper message.
Sue,
Thank you for your questions.
We met with the Band administrator last week and here is what we know and what we do not know as of today.
1. We do not know what the new lease rates will be. We understand that the Band and Indigenous Services Canada, who did the land appraisals, are in final discussions on the new rates. The appraisal process was held up due to Covid restrictions. Once the Chief and Band Council approve the rates we are assured that we will be notified so we can post them on the SCOI website.
2. We do know that the Service Fee will remain unchanged at $1000 for the coming year. We also know that the Service Fee invoice and accompanying brochure will be late coming out due to Covid backlogs in the Lands Department. We will have to wait to see when the invoices arrive before enquiring about flexibility on the April 1st payment deadline.
3. Lease extensions/renewals will not likely be mailed out for signing until the results of the designation vote are known. Indigenous Services Canada (ISC) are also involved here as they are responsible for overseeing the vote. We are also assured that once the Chief and Band Council have dealt with the results of the vote we will be advised and this too will be posted on the SCOI website.
4. And finally, we have not been notified of any change to the May 1st deadline for cottage owners to have the paperwork submitted to the Lands office for septic permits. We do know that at least 70% of cottage owners are currently in compliance with the Band’s expectation in this regard. We will let you know if this deadline changes. In the meantime we advise you to assume the deadline has not changed.