CITY OF KIMBERLEY A. ADDITION OF LATE ITEMS

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1 CITY OF KIMBERLEY Minutes of the Kimberley City Council held on Monday, November 14, 2016 at 7:00 p.m. in the Council Chamber of City Hall, 340 Spokane Street, Kimberley, British Columbia. PRESENT: ABSENT: Mayor McCormick Councillor Goodwin Councillor Hoglund Councillor Kitto Councillor Middlebrook Councillor Oakley Councillor Roberts Scott Sommerville Dawn Attorp Troy Pollock Nicole Thurman The meeting was called to order at 7:00 p.m. A. ADDITION OF LATE ITEMS 1. Item I1: Capital Infrastructure Planning Report from Urban Systems and application for to UBCM for a 'Asset Management Prioritization Framework for Capital Infrastructure Planning'. 2. Item I2: Transfer of Conference Centre Liquor License to the Kimberley Community Development Society. B. APPROVAL OF AGENDA Moved by Councillor Hoglund, Seconded by Councillor Middlebrook: "THAT the November 14, 2016 Regular Council Agenda, be approved." C. ADOPTION OF MINUTES 1. Minutes of the Regular Meeting of Council held on October 24, 2016.

2 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 2 of 24 Moved by Councillor Oakley, Seconded by Councillor Roberts: "THAT the Minutes of the Regular Meeting of Council held on October 24, 2016, be adopted." D. PUBLIC AND/OR STATUTORY HEARINGS 1. Proposed Zoning Amendment - Mountain Spirit Resort. Mayor McCormick called the Public Hearing open at 7:01 p.m. Mayor McCormick provided an overview of the proposed amendment to the Zoning Bylaw along with an overview of the Public Hearing Process, which is attached to and forms part of these minutes. Mayor McCormick called three times for any representations regarding the proposed Bylaw. Aside from the 2 pieces of previously received correspondence items, all opposed to the proposal, the following comments were made to Council: Pat Elynuik, President, Mountain Spirit Resort & Spa. Mr. Elynuik highlighted sections of his letter that was previously submitted, which is attached to and forms part of these minutes. He thanked Council for their consideration of his proposed revisions to the wording in the Bylaw. Richard Haworth, Haworth Development Company - Mr. Haworth highlighted sections of his letter that was previously submitted, which is attached to and forms part of these minutes. Mr. Haworth thanked Council for their time. Ted Funston, General Manager of Kimberley Alpine Resort, including Trickle Creek Lodge and Polaris Lodge. Mr. Funston stressed that tourism benefits all aspects of our City, and the success of the tourism is very dependent on having short term accommodation for tourists to rent, when the condos are not being used by their owners. He stated is makes sense for the Zoning Bylaw to mirror the covenants already in place. Mayor McCormick declared the Public Hearing closed at 7:25 p.m. E. DELEGATIONS AND PRESENTATIONS rd Quarter RCMP Report, Kimberley RCMP. Sergeant Chris Newel, Kimberley RCMP Detachment presented Council with his third quarter report. He highlighted the speed watch section, the

3 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 3 of 24 auxiliary program section, and stated that crime numbers are down from this time last year. 2. Earth's Own Naturals. Laurie Weitzel, Owner of Earth's Own Naturals could not attend. 3. Cranbrook Sunrise Rotary Club - Thank You to Council. On behalf of the Sunrise Rotary Club, Al Dyck thanked Council for their support with the Gran Fondo Race. He presented Council with a plaque for their continued support with the race. F. CONSENT AGENDA Moved by Councillor Roberts, Seconded by Councillor Kitto: "THAT the following items be received into the record, 1. MINUTES, 2. REPORTS, 3. CORRESPONDENCE." 1. MINUTES 1.1 Minutes of the Committee of the Whole meeting held on November 7, SPECIAL REPORTS 2.1 Animal Control Monthly Report - October, Bylaw Monthly Report - October, Building Permit Monthly Report - October, Council is impressed with the upward climb in building permits. 2.4 Building Permit Year to Date Report - January to October, Operations Department Summary 2016

4 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 4 of CORRESPONDENCE Items for information: 3.1 Letter dated October 18, 2016 from Mike Morris, the Minister of Public Safety and Solicitor General thanking Mayor McCormick for the meeting at the 2016 Union of British Columbia Municipalities Convention. 3.2 Letter dated October 19, 2016 from Shirley Bond, Minister of Jobs, Tourism and Skills Training thanking Mayor McCormick for the meeting at the 2016 Union of British Columbia Municipalities Convention. 3.3 Letter dated October 31, 2016 from the Local Government Management Association advising Nicole Thurman that she has been one of nine recipients selected in the province to receive the 'Distinguished Members Legacy Fund' Scholarship for 2016/2017, in the amount of $1, Council congratulated Ms. Thurman on her achievements in obtaining this scholarship. 3.4 Letter dated November 2, 2016 from the Union of British Columbia Municipalities congratulating the City of Kimberley for undertaking and completing the 2015 Asset Management Planning Program (Asset Management Assessment). 3.5 Letter received November 7, 2016 from Michelle and Eric Forbes regarding Medical Marijuana Dispensaries within the City of Kimberley. 3.6 Letter dated November 9, 2016 from the Kimberley Community Development Society advising they will provide the funding to repair the Conference Centre Heating System. Council offered a thank you to the Kimberley Community Development Society on obtaining the funds through their other ventures to repair the heating system. Items for potential action: 3.7 Letter dated November 2, 2016 from the Kimberley Senior Citizens Branch 14 requesting some updates and repairs at Centennial Centre.

5 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 5 of 24 Councillor Hoglund questioned if the repairs could be worked into the 2017 budget. The Chief Administrative Officer informed Council that the lighting and other repairs have already been completed, and the parking lot repairs will begin later this week. 3.8 Letter dated November 5, 2016 from the Kimberley Gymnastics Society regarding their business plan for a new venue and requesting the City's outlined partnership. Moved by Councillor Goodwin, Seconded by Councillor Hoglund: "THAT this letter be referred back to staff and a report come back to Council with recommendations." G. ITEMS FROM COMMITTEE OF THE WHOLE 1. REPORTS 2. OTHER ITEMS There were no items received for this meeting. 2.1 Kimberly's Releaf Dispensary. Council discussed Ms. Cox's business plan and the needs of dispensaries in the community. There was discussion around the needs for other ways to regulate the proposed business's in the way of bylaws, policies etc. Moved by Councillor Kitto, Seconded by Councillor Oakley: "THAT the Business License application for Kimberly's Releaf Dispensary for a medical marijuana dispensary at 185 Deer Park Avenue, be approved." (Mayor McCormick was opposed.) 2.2 Sullivan Mine & Railway Historical Society. Moved by Councillor Roberts, Seconded by Councillor Kitto:

6 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 6 of 24 "THAT the Sullivan Mine & Railway Historical Society be encouraged to put an after deadline application in for a Community Fund grant for consideration with other applications received." (Councillor Goodwin was opposed.) H. BYLAWS, PERMITS, AND POLICIES PERMITS: 1.1. Proposed Zoning Amendment to Bylaw , 340 Deer Park Avenue. Considered was a report dated November 8, 2016 from the Planner. The Manager, Planning Services provided Council with an overview of the proposed zoning amendment. There were comments that it seems we are creating a new zone for each building and asked whether we can apply this to the whole downtown area, and the manager replied that there are reasons why they are all looked at differently is because the property owner does not want to wait for the department to take on a larger review. Moved by Councillor Hoglund, Seconded by Councillor Roberts: "THAT Council provide First Reading to Bylaw No. 2566, City of Kimberley Zoning Bylaw No. 1850, Amendment No. 131, 2016"; AND THAT a Public Hearing for Bylaw No be scheduled for the Regular Meeting of Council on Monday, November 28, 2016 at 7:00 p.m." BYLAWS FOR FIRST, SECOND, AND THIRD READINGS: There were no items received for this meeting. BYLAWS FOR ADOPTION: 3.1 Inter-Community Mobile Business License. Considered was a report dated October 4, 2016 from the Economic Development Officer.

7 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 7 of 24 Moved by Councillor Roberts, Seconded by Councillor Goodwin: "THAT the "City of Kimberley Inter-Community Business License Bylaw No. 2552, 2016", be adopted." 3.2 City of Kimberley Animal Control Bylaw No. 2544, Considered was a report dated October 12, 2016 from the Corporate Officer. Moved by Councillor Hoglund, Seconded by Councillor Roberts: "THAT the "City of Kimberley Animal Control Bylaw No. 2544, 2016", be adopted." 3.2. Municipal Ticket Information Amendment - Animal Control. Considered was a report dated October 17, 2016 from the Corporate Officer. Moved by Councillor Kitto, Seconded by Councillor Roberts: "THAT the "Municipal Ticket Information Amendment Bylaw No. 2562", be adopted." 3.3. Repeal of Spent or Obsolete Bylaws. Considered was a report dated October 19, 2016 from the Corporate Officer. Moved by Councillor Middlebrook, Seconded by Councillor Hoglund: "THAT the "City of Kimberley Repeal Bylaw No 2561, 2016", be adopted." 3.4. Kimberley Reserve Fund Expenditure Bylaw No. 2563, Considered was a report dated October 19, 2016 from the Chief Financial Officer.

8 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 8 of 24 Moved by Councillor Hoglund, Seconded by Councillor Oakley: "THAT the "Kimberley Reserve Fund Expenditure Bylaw No. 2563, 2016", be adopted." 4.1 Policy Review. Considered was a report dated October 27, 2016 from the Fire Chief. Moved by Councillor Roberts, Seconded by Councillor Middlebrook: "THAT the following policies be repealed: Firefighters - Physical Fitness Permits - Fire Firefighters - Medicals Fire Hall - Use of Room Above Firefighters - Personal Appearance Firefighters - Uniforms." I. NEW/OTHER BUSINESS 1. Capital Infrastructure Planning Report from Urban Systems and application for to UBCM for a 'Asset Management Prioritization Framework for Capital Infrastructure Planning'. The Chief Administrative Officer provided Council with an overview of the Urban Systems report and the application. Moved by Councillor Hoglund, Seconded by Councillor Oakley: "THAT Council support application to the Union of British Columbia Municipalities Asset Management Program for the proposed 2017 'Asset Management Prioritization Framework for Capital Infrastructure' and provide overall grant management." 2. Transfer of Conference Centre Liquor License to the Kimberley Community Development Society. Report dated November 14, 2016 from the Economic Development Officer.

9 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 9 of 24 Moved by Councillor Middlebrook, Seconded by Councillor Goodwin: "THAT Council agrees to the transfer of the Liquor License for the Kimberley Conference and Athlete Training Centre, Food Primary #304228, from the name and ownership of the City of Kimberley to the Kimberley Community Development Society." 3. Snow and Ice Management Plan Considered was a report dated October 25, 2016 from the Director of Operations. Moved by Councillor Hoglund, Seconded by Councillor Kitto: "THAT Council approve the Snow and Ice Management Plan for 2017." 4. Mainstreams - Kimberley Streamkeepers Group Liaise. Considered was a report dated October 25, 2016 from the Director of Operations. Moved by Councillor Middlebrook, Seconded by Councillor Oakley: "THAT City of Kimberley Senior Management staff work with the "Mainstreams - Kimberley Streamkeepers Group"; AND. THAT Council endorse Mainstreams work on Mark Creek." 5. Memorandum of Agreement - SPCA. Considered was a report dated October 27, 2016 from the Corporate Officer. Moved by Councillor Hoglund, Seconded by Councillor Goodwin: "THAT the Mayor and Corporate Officer be authorized to sign the Memorandum of Agreement between the City of Kimberley and the BC SPCA for the provision of pound services from January 1, 2017 through December 31, 2019." Nuisance Mosquito Control Program. Considered was a report dated October 31, 2016 from the Director of

10 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 10 of 24 Operations. Moved by Councillor Middlebrook, Seconded by Councillor Goodwin: "THAT Council receive the "Integrated Pest Management Program Nuisance Mosquito & Vector Mosquito Control 2016 Summary Report"." 7. Invasive Plant Management 2016 Report. Considered was a report dated November 1, 2016 from the Director of Operations. Moved by Councillor Hoglund, Seconded by Councillor Kitto: "THAT Council receive the 'Invasive Plant Management 2016 Report' for information." 8. UBCM Contract Extensions. Considered was a report dated November 2, 2016 from the Fire Chief. Moved by Councillor Middlebrook, Seconded by Councillor Goodwin: "THAT Council extend the current contracts with Strategic Fire Control and Wildlands Eco-Forestry for 8 months ending June 20, 2017; AND THAT the Mayor and Corporate Officer be authorized to sign the extensions to June 20, 2017." 9. Application to 2016 Clean Water and Wastewater Fund. Considered was a report dated November 8, 2016 from the Economic Development Officer. Council was pleased to see this application moving forward. Council thanked the Chief Administrative Officer and Staff for being diligent in working towards Council's five strategic goals and priorities. Moved by Councillor Oakley, Seconded by Councillor Kitto: 1. "THAT Council direct Staff to apply to the Federal Clean Water and Wastewater Fund requesting 83% funding toward the $2.6 million cost for Planning and Engineering of a new Wastewater Treatment system."

11 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 11 of "THAT the City's 17% share of the project be identified in the Financial Plan as being funded by borrowing through the Municipal Finance Authority." 10. Kimberley Minor Hockey Association Ice Rental Conditions of Ice Use Considered was a report dated November 9, 2016 from the Director of Operations. Moved by Councillor Hoglund, Seconded by Councillor Roberts: "THAT Council approve the Kimberley Minor Hockey Association Ice Rental Conditions of Ice Use " 11. Cheque Runs # and Moved by Councillor Roberts, Seconded by Councillor Hoglund: "THAT City of Kimberley Cheque Runs # and in the amounts of $1,171, and $214,479.04, respectively, be approved for payment." J. COUNCIL ENQUIRIES AND SUNDRY MATTERS 1. There was an enquiry about Gerry Sorensen way being officially complete.. 2. There was an enquiry about the industrial lands and whether they are located on the benchlands. Council went around the table to voice their bi-weekly reports, with the following being highlighted for public/staff benefit: Nature Park Society Meeting, Kimberley Trails Society Meeting, Kimberley Trails Society Annual General Meeting is on December 7th, AKBLG financial statements finalized and the Conference was successful, Fall Fair, Youth Society is creating a new age group, Remembrance Day was successful, last year at the Cenotaph,

12 Minutes for the Regular Meeting of Kimberley Council - November 14, 2016 Page 12 of 24 Kimberley Community Development Society Meeting, Regional District of East Kootenay Meeting, Gala at the Conference Centre, 2016 Wall Grain Mixed Doubles Curling at the Kimberley Curling Club. K. QUESTION PERIOD There were no questions presented from the gallery. L. ITEMS BROUGHT FORWARD FOR PUBLIC INFORMATION 1. "THAT the following resolution from the In-Camera Meeting of Council held on October 24, 2016, be released to the public: THAT Council award the contract for the Conference Centre Heat Exchange Pipe Replacement Project to New Dawn Developments of Cranbrook in the amount of $490, plus applicable taxes." N. ADJOURNMENT The meeting was adjourned at 9:11 p.m. Moved by Councillor Hoglund, Seconded by Councillor Oakley: "THAT this meeting be adjourned." Signed: MAYOR Certified Correct: CORPORATE OFFICER

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15 Mountain Page 15 of 24 Mountain Spirit Resort & Spa Hospitality Inc. 400 Stemwinder Drive, Kimberley, British Columbia V1A 2Y9 To Mayor & Council: Re: Proposed Zoning Amendment Spirit Resort I am the president of Mountain Spirit Resort & Spa lnc., rental manager for Mountain Spirit Resort and owner of strata lot 4. I also manage 67 units at Northstar and have been operating in the hotel and tourism business in Kimberley for the past 16 years. I am writing this letter to express concern regarding the current draft of the proposed amendment to LA-7zoning. I support the owners and their right to occupy their property for their own personal use, however the current proposal as drafted requires some revision to ensure the hotel operations can continue and that adequate tourist accommodation can remain available at the Kimberley ski hill. About Mountain Spirit Resort The hotel operations at Mountain Spirit Resort currently generate $1.2 million in annual revenues, representing 11,234 hotel nights and nearly 9,000 visitors each year to Kimberley. The hotel provides year round hotel accommodation for a range of visitors, including weddings, events, sports tourism, golf groups, corporate and conference center guests. Mountain Spirt Resort currently employs 8 cleaners, a maintenance person, 4 front desk staff, a general manager, a sales and marketing director and a hotel executive. Hotel revenues generate $24,000 per year in contributions to the Resort Municipality Infrastructure Fund, being $100,000 since inception of the program. In addition, Mountain Spirt Resort has directly contributed $48,000 to TourismKimberley over the past 6 yea rs. Market Demand and Capacity for Hotel Accommodation in Kimberley This is a defining moment for tourism in Kimberley. Overall number of visitors are continuing to increase due largely to the combined efforts of Tourism Kimberley, the City's re brandingeffort and the investment in local amenities, including the platzl restaurants and shops, trails, golf and the conference center. The conference center will need hotel rooms to support its growth. Based on current estimates provided by the Kimberley conference center staff, there will be a potential need for 17,470 delegate nights between 2017 and There is a limited supply to meet the projected needs of the Kimberley conference center since there are only three full service hotel operators in Kimberley servicing this market. The RCRhotels, Polaris and Trickle Creek Lodge, primarily seek to attract skiers and golfers in support of RCR score business. Going forward, Mountain Spirt is positioned to be the hotel option of choice for the conference center and other events, especially during the peak ski and golf seasons. The RCRhotels alone will not have sufficient capacity to service the existing and future demand for onhill hotel accommodation and it is very unlikely that any developer will make the massive investment required to construct another hotel in the next 10 or 20 years.

16 Market Demand and Capacity for Residential Condos at the Ski Hill Page 16 of 24 Unlike hotels, there is an oversupply of residential condos at the Kimberley ski hill. The result is low occupancy rates and declining market values. In other words, the demand is low and the supply is large. if someone is looking for an on-hill condo for residential use, there is ample selection. There is absolutely no need for the City to create more and at the same time reduce the number of hotel style units available of which there is a limited supply and a growing demand. Minimum Capacity for Hotel Operations at Mountain Spirit The current number of units in the rental pool is 56. This is very close to the minimum amount required to operate the resort as a hotel. The hotel business is a volume based business, and a certain minimum number of units must be available to be filled on weekends and holidays in order to cover overhead the cost of employees. If some of the owners currently in the rental pool decide to convert their units to monthly rentals, the hotel will be unable to continue. in essence, the rezoning application as drafted will result in the closing of the hotel operation at Mountain Spirit, elimination of contributions to the Resort Municipality infrastructure fund and funding to Tourism Kimberley. The Rental Management Agreement and Rental Covenant The purpose of the rental covenant is to facilitate the operations of the hotel in an efficient, organized and collective manner through a professional hotel operator. A professional hotel manager ensures continuity of service and the ability to accommodate group packages and services for the benefit of both the hotel guests and the owners. The alternative would be self marketing by each individual owner on AirBnB, VRBO,third party rental management company, etc. The purpose is not to restrict personal use by owners. Personal use by owners is permitted in accordance with the rental management agreement. Basically this just means that owners must provide adequate notice to the rental manager to allow advance bookings for hotel guests. Last year alone, there were approximately 3000 owner nights. Residential Use is not defined in the zoning bylaw. Presumably it permits a variety of uses, including principal residence, long term tenancies and home based businesses. This would be totally in conflict with the intent of the rental management covenant and rental management agreement which was put in place to ensure professional and collective management and the availability of quality tourist accommodation to the public. Most of the owners are not local to Kimberley and are unaware of the nuances between the definitions of personal use and "residential use and many are totally unaware of the potential consequences to the operations of the resort as a whole if the application is approved. l suspect that many of the owners would not have given their support for the rezoning application if they had been given all the relevant information. In fact, I have spoken with owners recently who have confirmed this to me. and

17 Proposed Revision to allow "Personal Use" (n_otresidential Use) Page 17 of 24 I am proposing that Council approve the rezoning application with revisions to allow owners the flexibility to use their own unit, while continuing the hotel operation at Mountain Spirit and not reducing the number of units available for tourist accommodation Currently there are only a few owners which are using their units for residential use in contravention of the LA 7zoning. The majority of owners have their units available for nightly rental and also use them occasionally for personal use. Changing the zoning to permit the unauthorized use is rewarding those few who are not in compliance at the expense of the majority of owners. A partial zoning change to allow residential use also sets a dangerous precedent. if this application is approved, then owners at Polaris and Trickle Creek Lodge may also bring similar applications to permit residential use and thereby reduce the available units for tourist accommodation. It will be difficult to differentiate those applications from the current one. I propose the following revision to the wording of the rezoning application: Replace residential use with Qersonaluse, and add a definitionofgersonal use as follows: Personal use means use or occupation ofthe unit by a registered owner or their immediate family for their own personal use in accordance with the terms ofthe rental management agreement entered into with the rental manger for the rental of the unit. l am suggesting a measured and conservative approach which meets the needs of a majority of owners and the hotel operator. lf Council decides to open up the current permitted use to unlimited residential use it will be very difficult if not impossible to go back and take that permitted use away in the future. An alternative approach would be to wait and see whether the projections for increased conference center guests materializes over the next few years. if in a few years it is determined that the conference center visitors will not be increasing and that Polaris and Trickle Creek Lodge alone can provide sufficient capacity, then perhaps the proposal can be revisited at that time. Thank you very much for giving considerate attention to the concerns I have set out above. For your reference, I have enclosed supporting letters from owners of strata lots 4,24,25,35,40,43, and 55. Since, at El nuik Enclosures -Letter from John Vandermeer, Ron Waldman & Pat Elynuik.

18 Page 18 of 24 To Mayor & Council Re: Proposed Zoning Amendment Mountain Spirit 1am the Owner of Strata lots; 24,25 & 35 at Mountain Spirit Resort. Further to the zoning application text amendment dated June10, 2016 from Haworth Development Consulting. After more review and understanding of the implications that Residential Use may impose at Mountain Spirit. 1support the zoning revision recommendations of Personal Use as outlined in Mountain Spirit Resort & Spa Hospitality Inc letter written to council by Pat Elynuik. Yours Truly, 1..V/1,347 Jo dermeer 1

19 Mountain Page 19 of 24 To Mayor & Council Re: Proposed Zoning Amendment Spirit I am the Owner of Strata lots; 43, & 55 at Meuntain Spirit Resort. Further to the zoning appiicaticn text amendment dated lune 10, 2016 from Hawarth Development Consulting. After mare review and understanding of the impiications that Residentiai Use may impose at Mountain Spirit. support the zoning revision recommendations af Personal Use as outiined in Mountain Spirit Resort & Spa Hospitality inc fetter written ta council by Pat Elynuik. Yours Truly, - /I /<6!» A N.» K Ron Waldman /4«/"W. ;,~.' a 5

20 Mountain To Mayor & Council Page 20 of 24 Re: Proposed Zoning Amendment Spirit I am the Owner of Strata lots; 4, & 40 at Mountain Spirit Resort. Further to the zoning application text Development Consulting. amendment dated lune 10, 2016 from Haworth After more review and understanding of the implications that Residential Use may impose at Mountain Spirit. I support the zoning revision recommendations of Personal Use as outlined in Mountain Spirit Resort & Spa Hospitality Inc letter written to council by Pat Elynuik. Yours y, Pat Elynuik

21 Page 21 of November 2016 City of Kimberley 340 Spokane Street Kimberley, BC V1A 2E8 Attn: Mr. Troy Pollock Manager, Planning Services Re: Mountain Spirit Lodge, Kimberley Application for Zoning Text Amendment Public Hearing Submission Dear Mr. Pollock, Haworth Development Consulting provide this submission for the public hearing to be held 14 November 2016 on behalf of the owners of 67 residential units at Mountain Spirit Lodge. The zoning application submitted by Haworth Development Consulting on behalf of these owners, seeks to make the owner s current use of their units legal. Presently, the zoning bylaw does not permit owners of units to use their unit for personal use, even when the unit is not being rented in the rental pool. This is contrary to the rental pool covenant and covenants between the developer and the City. It is common knowledge that some owners are currently using their units when they are not in the rental pool. We are simply seeking to make this use legal. Because the units are already utilized by some owners (as the majority were not aware of this zoning restriction prior to this application), we do not foresee any change in the number of units available for the rental pool and no change in the rental revenue to the strata or tax revenue to the City. The strata units all have a covenant registered on title between the unit owner and the City of Kimberley. This covenant states, in part, that each and every Unit now and hereafter created on the Lands shall be used only for Commercial Rental Use provided that subject to Article 2.2, a Unit may be used for Residential Use. Article 2.2 states, in part, that the Unit Owner, no less than 6 months and no more than twelve months prior to the date required, make a prior reservation of the period or periods for which the Unit Owner wishes to use the Unit for Residential Use. These clauses make it clear that the City intended this building to be used for accommodation purposes but that an owner s use of the unit for personal use was permitted. Unfortunately, the zoning bylaw for the property does not permit use of the unit by the owner when the City s covenant clearly foresaw this use and clearly permitted this use. In addition to the above covenant, the majority of units in the building are also subject to a rental pool covenant between the rental pool manager and the strata unit owner. This covenant requires the unit owner to use their unit for personal use or place it in the rental pool. We understand that there is concern by opponents to this application. Particularly, we understand that there is concern about the loss of rental revenue and the rental of units through AirBnB, VRBO or other third-party rental schemes. We contend that these concerns are unfounded for the following reasons: HAWORTH DEVELOPMENT CONSULTING LTD. PO Box 223, Suite 203, th Avenue, Invermere, British Columbia V0A 1K0

22 Page 22 of The current owners of the strata units already use their units for personal use. This bylaw simply makes this use legal in accordance with the rental covenant on each unit. There will be no change in the actual use of the units by owners as a result of this bylaw amendment. 2. The rental of the units is controlled through an agreement between the Rental Pool Manager and the Strata Unit owner. This agreement states that units can be used for personal use (in contravention of the current zoning bylaw) and requires the strata lot owners to rent their unit only through the rental pool manager. Rental of units through AirBnB, VRBO or other third-party rental scheme is not permitted in accordance with the covenant. We also understand that opponents to this bylaw are seeking to insert language dealing with Personal Use rather than Residential Use. The term residential in the bylaw simply denotes between the various land uses in a zoning bylaw residential, commercial, industrial, institutional, etc. All land uses must fall within one of these types in accordance with the bylaw. To state that personal use should be permitted does not in itself define the type of use permitted. We also understand that opponents to this bylaw are suggesting that the bylaw be amended to include language that references the rental management agreement. To our knowledge, this would be unheard of in a zoning bylaw. It is our opinion (and we believe we are supported in common law) that there is no place for the City to insert language in a zoning bylaw that references a third-party legal agreement. In closing, we contend that the change in zoning requested will simply allow the owners of these units to use there unit in accordance with the rental pool agreement and will not result in any lost revenue to the rental pool company, the City or the resort. In fact, we believe that the long-term success of this project and Kimberley as a destination resort, would be better off with this change in zoning. Sincerely, Haworth Development Consulting Ltd. Richard Haworth Encl. HAWORTH DEVELOPMENT CONSULTING LTD. PO Box 223, Suite 203, th Avenue, Invermere, British Columbia V0A 1K0

23 STATEMENT FOR CHAIR OF PUBLIC HEARING Page 23 of 24 This public hearing is being convened pursuant to Section 464 of the Local Government Act in order to consider proposed amendment to the City of Zoning Bylaw, specifically: Proposed Bylaw No (Amendment No. 35, 2016 to the Alpine Zoning Bylaw No. 2016) Any person who deems their interest in property to be affected by this bylaw shall be given the opportunity to be heard at this meeting. No one will be, or should feel, discouraged or prevented from making their views known. Overview of Proposed Amendment to the Zoning Bylaw The proposed Bylaw 2546 would amend the LA-7 Lodge Accommodation Zone that applies to the Mountain Spirt Resort at 400 Stemwinder Drive. The proposed change is intended to allow for residential use of specific strata units with the Mountain Spirit Resort when such units are not occupied for visitor accommodation. The proposed amendment would add a new subsection (g) under the Permitted Uses Section 7.10(2) of the LA-7 Zone, as follows: Despite any other provision of this Bylaw, those resort hotel units and lodge units legally referenced as Strata Lots 5 to 37, 39, 41, 42, 44 to 54, and 56 to 73, Plan NES3610 may be used for residential use when such units are not occupied for tourist accommodation use. No other changes are proposed to the LA-7 zone. Overview of Public Hearing Procedure Once again, any person who believes that their interest in property is affected by the proposed bylaw will be given an opportunity to be heard. No one will be, or should feel, discouraged or prevented from making their views known. Members of Council may ask questions of you following your presentation for clarification. However, the main function of Council members this evening is to listen to the comments presented and not to debate the merits of the proposed bylaw or any comments presented. After this public hearing has concluded, Council may, without further notice, give whatever effect Council believes proper to the representations made at this hearing. November 14 th 2016 Public Hearing Bylaw 2546 LA-7 Zone Mountain Spirit Resort Page 1 of 2

24 Page 24 of 24 During the course of a public hearing, people sometimes tend to become enthusiastic or emotional. Regardless of whether you favor or oppose any particular application or argument, please refrain from applause or other expressions of emotion. Restraint enables others whose views may or may not coincide with your own to exercise their right to express their views and enables all views expressed to be heard in as impartial a forum as possible. Once the public hearing is closed, members of Council cannot take any further input regarding the proposed amending bylaws and will then deal with the bylaw during a subsequent meeting of Council. Any person who wishes to comment on the proposed bylaw should raise your hand, and when prompted by the chair, begin by clearly stating your name and address and then present your comments. You will be given up to 5 minutes for your presentation. I will call for presentations 3 times, please note that if you do not raise your hand by the 3 rd call you will miss your opportunity. 1 st call for submissions regarding proposed bylaw 2546, please raise your hand if you wish to be heard [multiple submissions may be allowed per call] 2 nd call for submissions [multiple submissions may be allowed per call] 3 rd and final call for submissions With no further submissions, the public hearing for proposed bylaw 2546 is now closed. November 14 th 2016 Public Hearing Bylaw 2546 LA-7 Zone Mountain Spirit Resort Page 1 of 2