County of Forty Mile No. 8

The following information is for current or potential owners
of Long Term Lease Lots in Areas A, C, D, and G.

• All Lease Lots are subject to an Annual Lease Fee.  The fee is set annually by the Park Management Committee.
• All Lease Lots are subject to annual taxes which are due August 31 of every year.  Taxes are assessed by Market Value according to Provincial Regulations.  Click below for link to Alberta Government Property Assessment and Taxation. http://www.municipalaffairs.alberta.ca/mc_property_assessment_and_taxation.cfm
• All development requires a permit from the County Development Officer and must conform to the County Land Use Bylaw.

Sub Lease Agreement:

• 40 Mile Park is owned by the Saint Mary’s River Irrigation District and is leased to the County of Forty Mile No. 8.   The Head Lease with the SMRID expires December 31, 2036.
• A new Sub-Lease Agreement was created in 2001 and at the same time the Head Lease with the SMRID was renewed.  The 2001 Head Lease contained the following section which automatically renews all Leases signed prior to January 1, 2001 for 25 years.
  • 4.3     Any and all Sub-Leases granted by the Lessee prior to January 1, 2001 will be amended to twenty-five year terms beginning January 1, 2001 and be subject to Article 8 of this Agreement.
• Sub-Leases may not continue past the Head Lease expiration date and all new transfers will expire on December 31, 2036.

Article 8 Assessment Differential Fee (85/ 15 Factor)

8.2       The Lessee may in the Sub-Lease allow the Sub-Lessee to assign their interest described in the Sub-Lease subject to the following terms and conditions.

             8.2.1         The Lessee shall provide the Owner withnotice in writing of the assignment;

             8.2.2         The assignment shall not vary or alter the terms and conditions of the original Sub-Lease with the Lessee;

             8.2.3         The assignment is subject to the payment to the Lessee of a Transfer Fee calculated as follows;

                                8.2.3.1     The assignor of any leasehold interest (the “Interest”) in the Reservoir Lands shall pay to the Lessee a Transfer Fee calculated as 85% of the capital gain (the “Increase”) on
the Assessed Value.

                                8.2.3.2     On existing Sub-Leases dated prior to January 1, 2001 the Increase shall be calculated as the difference between the Assessed Value of the Interest as of  January  1,  2001 (the “Valuation Day”) and the Assessed Value of the Interest as of the date of any assignment occurring after valuation day.

                                8.2.3.3     On all new Sub-Leases dated after January 1, 2001 the Increase shall be calculated as the difference between the Assessed Value in the year the Sub-Lessee was acquired and the Assessed Value as of the date of assignment.

                                8.2.3.4     If the price paid by the assignor for his interest of the land only is higher than the Assessed Value, then upon presentation, verification and approval by the Lessee this value will be used as the valuation day value and be attached as an addendum to that Interest.

8.3       The Lessee will invest all monies received from transfer fees in the development, operation and maintenance of Forty Mile Park and the Lessee shall provide the Owner with a yearly accounting of the transfer fee monies received.

Sample:            

A.  Lot assessment value at the time Lease was acquired        $10,000

B.  Current Lot assessment                                                        $20,000

C.  Increase in Lot assessment                                                  $10,000 (C = B – A)

D.  85% of increase is (Differential Fee)                                     $  8,500  (= C x .85)

The amount is payable to the County of Forty Mile No. 8.   If the Differential Fee is less than the Transfer Fee, the Transfer Fee prevails ($500). If the Differential Fee is more than the Transfer Fee, the Transfer Fee is waived.

Article 8.2.4 (Deferment for Transferring within Family)

The Lessee may allow the assignment of a Sublease from a Sub-Lessee to the spouse, or a direct lineal descendent of the Sub-Lessee consisting of a child or grandchild of the Sub-Lessee (the “Sub-Sub-Lessee”) and the Sub-Sub-Lessee will assume the Lease with the same “Valuation Day” as was applicable to the assignor, and in such circumstances the assignor shall not be required to pay the Transfer Fee, (or Differential Fee), but in all other respects the transfer provisions of this Agreement shall apply to the Transfer.