Nelson city council has approved a one-year permissive tax exemption for the Granite Pointe Golf and Recreation Society, following a lengthy debate over community benefit, fairness and the future of the golf course lands.
Under the Community Charter, council may exempt land improvements from property taxes by bylaw before Oct. 31 each year.
The City of Nelson’s policy allows four-year exemptions for non-city-owned properties and 10-year exemptions for city-owned lands.
The society did not receive an exemption for 2025 due to uncertainty around a proposed subdivision and land sales for development.
The golf course remained open to the public this year and was fully taxed.
City staff requested council’s consideration of a one-year exemption at the Oct. 21 committee-of-the-whole meeting, but asked that it apply only to the portion of land operated by the society, not to any parcels slated for housing development.
Vancouver-based developer Halo Properties announced plans in July 2024 to build a $500-million residential community at the golf course. But CAO Kevin Cormack told councillors the developer has since decided to scale back its plans.
“The developer is not going ahead with the larger development. Sounds like they may pivot to housing more in bits with the community on that first phase. And there will be no development of the course in 2026 for sure,” said Cormack.
It remains unclear what the project will look like going forward, but the current plan is to develop a three-acre parcel already rezoned for housing, while the golf course will stay under the society’s management for 2026.
Councillor Rik Logtenberg said he would not support the society’s tax exemption request, arguing that doing so amounted to subsidizing a recreational amenity used by only a small portion of residents.
“We’re asking the taxpayer to subsidize an amenity that’s used by a small fraction of the population when there are many such demands from many organizations. My personal policy is that when we’re considering subsidizing a group, we need to consider it for its contribution to common welfare,” said Logtenberg.
He added that the golf course already benefits from low assessment rates as it is zoned parkland, which has significantly reduced its tax burden compared with other properties.
Other councillors questioned whether public access to the land was sufficient to justify a tax break.
“It sounded like a seasonal operation for me,” said Leslie Payne, noting the course’s limited community benefit.
“Currently what we have is a club that predominantly is private. And then when it’s not running, people know to use it for snow activities,” added Keith Page.
But Cormack emphasized that the society’s maintenance of the greenspace provides community value.
He argued that if the land were a city park instead, it would require hundreds of thousands of taxpayer dollars annually for upkeep.
“That’s the argument they’re making – they pay for cutting the grass and maintaining the pathways and all those things that, if that was a city park, we would pay a substantially greater cost,” explained Cormack.
“So I think from a value-for-the-community standpoint, that is a very cost-effective way to provide green space for the city.”
Logtenberg said he still was not convinced the society needed further financial relief, although he acknowledged the golf course offers seasonal benefits.
Councillor Payne also expressed mixed feelings, referring to $500,000 the society has reserved for future development.
“Are we just facilitating this ever downward fall of an organization with taxpayers’ funds?” she asked.
Other councillors stressed the importance of preserving open, green space in Nelson as the city grows.
Kate Tait noted that while there is significant pressure to increase housing, maintaining green spaces remains essential.
“In 50 years when the city grows and we’re densifying, we’re going to be glad if we’re keeping some open green spaces and some park-only spaces. So even though maybe the best use could be, you know, 4,000 houses at this time, we also need to be building a whole community around that much population,” she said.
Council narrowly approved the tax exemption request, emphasizing that it should not be viewed as a long-term commitment.
The motion passed 4–3, with councillors Logtenberg, Payne and Jesse Pineiro opposed.
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