Saskatoon mayor says he'd rather not take province to court over grants-in-lieu

The mayor of Saskatoon says he'd rather not take the Saskatchewan government to court over the contentious issue of recently-scrapped grants-in-lieu.

"Ultimately, I would actually rather work this out through a direct dialogue and a renewed agreement as opposed to spending money on lawyers and court fees," said Mayor Charlie Clark on Friday.

The comment is the latest in a series of recent developments that appeared to somewhat ease tensions around the province's decision to discontinue the grants. Theywere previously provided to municipalities in place of property taxes paid by Crown Corporations, such as SaskPowerand SaskEnergy.

• Saskatoon city council pursuing legal measures, other revenue following loss of provincial grants
• Saskatoon may have no legal grounds to challenge budget cuts, says prof

The change, which was part of the province's March 22 budget, left Saskatoon city councillors witha multi-million-dollar hole in their2017 budget. They are nowfacing a potential 6.97-per-cent property tax hike in 2018, partlyas a result of the cut.

• Early estimate for 2018 Saskatoon property tax hike: 6.97%

In March, councillorsvowed to explorelegal action against the province, including an injunction against the legislation that would permanently end the grants.

The Saskatchewan government thencontemplated a clause in Bill 64 that would have prevented the city from suing the province.

But when Bill 64 waspassed last week, that clause was removed.

"That changes the entire conversation now, because section sixwould have prohibited us completely from seeking legal action against the province," said Ward 1 CouncillorDarren Hill.

"There's been some indication from a couple ministers that they're interestedin entering conversationsaroundproperty tax for those buildings."

Legal option on pause, says mayor

Clark did not completely discount the possibility of legal action, saying that he wants talks with the provinceon a replacement program for the grants to begin"sooner rather than later."

"It was one option in the toolbox, and so I would say it's still in abeyance while we establish what we can achieve through negotiation," he said.

But he added that court action would not automatically mean victory and it would be costly.

"We don't want to throw good money after bad if there's no chance of winning and also if we can achieve a renewed program through direct negotiation which doesn't cost us money in the same way," he said.

SUMA 'reassessing' its legal options

Clark added that the city will ultimately take a co-ordinated approach with the Saskatchewan Urban Municipalities Association (SUMA).

A spokesperson for SUMA could not be reached for comment.

In a press release issued Friday, the association said it was "thankful" for the removal of section six from Bill 64.

"We are currently in the process of consulting with legal counsel to reassess our options on this matter," it added.