On September 22, the District of Squamish voted to reject a $142 million community contribution agreement from Woodfibre LNG. The council’s decision stems from significant concerns regarding inflation-linked payments and the potential for setting a risky precedent for future industrial projects.
The $117 million infrastructure plan and the $25 million tax carve-out
The proposed package, which included a Community Enhancement Payment Agreement (CEPA) and a Revitalized Tax Exemption (RTE), aimed to fund various public works over a ten-year period.. As the report indicates, the $117 million portion of the deal was intended for critical upgrades, including wastewater treatment, stormwater repairs, flood protection, and transportation improvements.
Under the terms of the rejected agreement, Woodfibre LNG would have received a tax break for a decade, with a $25 million component earmarked for a calibrated RTE . This exemption would have capped the annual levy at $2.5 million plus inflation, beginning on the fourth anniversary of the facility's completion, which is currently slated for 2027.
Jenna Stoner’s fight against unindexed fiscal risks
Councillor Jenna Stoner led the opposition against the deal, arguing that the lack of inflation indexing created an unpredictable financial burden for the municipality. Stoner emphasized that because municipal costs are expected to escalate over the next decade, failing to index core payments to inflation makes the long-term agreement untenable for the District of Squamish.
Beyond immediate fiscal concerns, Stoner and Councillor Lauren Greenlaw expressed fears that the specific financing structure could erode local control. They argued that accepting such a deal might establish a pattern that other industrial operators could exploit during future negotiations in Squamish and other coastal regions.
Tracey Saxby’s warning to British Columbia’s coastal hubs
Environmental advocates have also voiced strong opposition to the terms of the Woodfibre LNG proposal. tracey Saxby, co-founder of the organization My Sea to Sky, characterized the offer as a "terrible tax deal" that could jeopardize the fiscal planning of other communities across British Columbia.
According to the source,Saxby is concerned that the agreement would have allowed major industrial operators to operate at a "below average tax rate." This sentiment reflects a broader tension in the region, where municipalities are struggling to balance the economic benefits of greenhouse-gas-related projects with the need to safeguard public finances and environmental integrity.
The unresolved tension of the 2025 and 2026 taxation lawsuits
The future of the relationship between the District of Squamish and Woodfibre LNG remains clouded by ongoing legal and regulatory disputes. The council's rejection of the CEPA provides a strategic opening to revisit three separate lawsuits that the plant filed in 2025 and 2026 regarding taxation disagreements.
What remains to be seen is whether the company will return to the negotiating table with a more robust, inflation-protected offer or if the standoff will escalate through the courts. Additionally, the controversy surrounding the company's use of a "floatel" for worker housing continues to be a point of friction, with the province's Environmental Assessment Office having already issued orders regarding the permit.
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