Canadian Museum for Human Rights owes millions after bill battle settled

The City of Winnipeg and the federal government have finally resolved a years-longfight over billsfor the Canadian Museum for Human Rights.

The battle raged on for seven years, as the two sides could not agree on anassessed value.

The city maintained that the massive structure and the land it was built on should be pegged atmore than $100 million. The federal government disagreed and insteadvalued it at $30 million.

In the end, the city got what it wanted. OnFriday, CMHRchief financial officerSusanne Robertson said she's relieved the dispute has ended, as both sides now agree theland and museumare valued at $108 million.

• Canadian Museum for Human Rights value disputed by feds, Winnipeg

"We are very pleased that this long outstanding issue has finally been resolved between the City of Winnipeg and the federal department of public works. Now we know what the amount is," she said.

But that assessment means the museum will have to cover a $2.7million payment in lieu of taxesfor 2016, and another $6.7 million for the years prior.

Robertson isn't surprised or daunted by the bill.

"It's the amount the city has indicated for some time in terms of the tax amount. It is not totally unexpected,"Robertson said. "We still have to resolve it. I am not worried. Conversations with the federal government are going well."

The federal public works departmentpaid the entire $9.4 million owed to thecity on behalf of thenational museum. Ottawa is exemptfrom paying taxes to provincial or municipal governments, but in order to give value for the services federal buildings use, such as roads and sewers, it makes what are called payments in lieu of taxes (PILT).

Robertson says it stilladds up to what property taxes would be for a building the size of the CMHR in Winnipeg.

CMHR in deficit

Whilethe museum is still on the hook for $9.4 million that it will have to pay back to the federal government,Robertsonisn't concerned. She says $3.9 million has already been put aside through good fiscal management.

Indiscussions with Ottawa, the CMHR has highlighted that PILT was not included in the budget when the building first became a museum in 2008.

"So we have highlighted this problem to public works and we are in discussions now that we know the actual amount that is needed to resolve this going forward," she said.

Robertson is encouraged by the new federal government'ssupport fornational museums. It is investing $105.9 million over five years in national museums, with $6.1 million per year to help with operational and capital pressures. She doesn't know how much of that money will come to the CMHR.

"We think this is demonstrating their support to thenational museums and we are very pleased with that. We are encouraged a portion of that money will be used to help us with the deficit problem that arose because of the PILT," said Robertson.

She's hoping to know by the fall what portion of that money CMHRmay be eligible for.

Robertson added theCMHR hasn't been given any deadline forwhen the money has to be reimbursed.