Moving LUPs to a Market Value Approach

By Neil Hayward
Land Management Section Coordinator
Ministry of Natural Resources

As many NOTO members are aware, the Ministry of Natural Resources has been working with NOTO and the Ministries of Northern Development and Mines (MNDM) and Tourism (MTour) on the Provincial Resource-Based Tourism (RBT) Working Group over the last two and a half years. The working group was tasked with discussing and working towards resolution of some of the key resource management challenges facing the RBT industry over the longer term. The group is jointly co-chaired by MNR and NOTO with industry representation from three RBT operators located throughout northern Ontario. MNR representation includes representatives from Crown Lands, Field Services and Fish and Wildlife program areas with support from other programs (eg. Ontario Parks) as required.

The Working Group has focused on the following key areas:

Through the working group, the MNR and the RBT industry have agreed to modernize the administration of the approximately 1500 commercial outpost camps located on Crown land. In order to provide the RBT industry with greater title security, over the next ten years the MNR will be working with operators to change the tenure for these sites from land use permits to a 30 year Crown lease. It is anticipated that the Crown lease will provide the tourism industry with greater land tenure certainty while allowing MNR to maintain its stewardship responsibilities.

Over the next month, MNR’s Land Management staff in Peterborough will be contacting all RBT operators on Crown land with respect to these changes. Formal notification commenced in late August with a letter outlining the details of the program as it relates to the consolidation of land use permits into a single more administratively efficient document and the new market value based rents to be applied. The modernization of the land rent component has resulted in a single provincial rate applicable to all commercial outpost camp locations located in the province. This approach was developed directly with NOTO and is seen to benefit the industry by creating a level playing field for the land rental charge.

The implementation of market based rents is government policy and is being implemented for all commercial outpost camps on Crown land effective January 1, 2009. The RBT industry is one of the last remaining sectors to be affected by the implementation of this policy. Along with the increase from an administrative fee to market value rent, the process of consolidating multiple site land use permits will require extensive review and discussion with each operator to ensure a smooth transition. For further information on this initiative, please do not hesitate to contact me at 705-755-1252 or e-mail at Neil.Hayward@ontario.ca


This article was taken from page 13 of NOTO's "The Outfitter" publication, Fall 2008 Issue

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