City losing millions in Kapyong delay

Winnipeg Mayor Sam Katz said Thursday the city is losing millions in potential propertytax and otherrevenue as the future of a former suburban army base remains undecided.

"We're flushing away millions of dollars a year, I can tell you," Katz said.

The dispute over what should happen to the 90-hectare parcel of land known as Kapyong Barracks had dragged on for nearly a decade. The property is sandwiched between the affluent Winnipeg suburbs of River Heights and Tuxedo.

Thedelay into the decisiononKapyong's fatelikely grew longer after a federal court ruling Wednesday said a decision by Ottawa to transfer the land to an arms-length Crown corporation to redevelop and sell it was invalid.

Seven Manitoba First Nations Groups wontheir bid to overturn the pending transfer.

They successfully argued the government failed to appropriately consult them and feel the land should be used to settle outstanding land claims they have. The First Nations want to use part of Kapyong for housing and native-owned enterprises.

The base has been vacant since 2004, when the 2nd Battalion, Princess Patricia's Canadian Light Infantry, relocated to CFB Shilo near Brandon, Man.

The Canadian military has spent millions in upkeep and maintenance on the property since then.

The city is alsoanxious to have a decision madeon the land because it wants to widen Kenaston Boulevard, a major north-south traffic artery in the city that borders the disputed land.

Chief Glenn Hudson of Peguis First Nation one of the seven aboriginal groups to contest the land transfer said the community would be open to sitting down with the city to discuss using part of the land to widen Kenaston.

Katztold CBC Newsthe city will go ahead with the roadwork with or without a decision on Kapyong.