Residents of Jasper, Alta., who lost their homes in last month鈥檚 wildfire face unique rebuilding challenges tied to leasing provisions nearly as old as Canada, as well as modern rules dictating what they can and can鈥檛 construct.
Lawyer Jessica Reed said property owners in the townsite in Jasper National Park, unlike in other municipalities, don鈥檛 own the land they sit on.
鈥淭he actual owner of the land, even if you looked at the land title, is the King himself,鈥 said Reed, a partner with a firm that has offices in four Rocky Mountain municipalities, including Jasper.
This means that each property owner in Jasper, like those in other communities located within a national park, is a leaseholder with the Crown. They also don鈥檛 technically own their homes, Reed said, as the buildings are part of the lease.
The Canada National Parks Act also stipulates the leases are usually for 42-year terms, although some are shorter, and renewing involves renegotiating terms of the leases.
Reed said this has already caused headaches for Jasper homeowners, as banks sometimes refuse to issue mortgages if the existing lease on a property is shorter than the prospective mortgage term.
That problem could become much bigger, given 358 homes and businesses in the town of 5,000 people were recently levelled by fire, she said.
She鈥檚 concerned the leases may impede rebuilding efforts and potentially cause financial harm.
Residents and all park visitors were forced to leave on the night of July 22. They remain out and, although the fire is extinguished in town, crews are still fighting flames in the park.
Reed said those who don鈥檛 want to rebuild may also face challenges.
There have been instances in the past where property owners have taken insurance payouts after their homes were destroyed, rather than electing to rebuild, only to be blocked by Parks Canada from selling the vacant land to a prospective buyer, she said.
鈥淥ne owner wanted to take a buyout and then just sell the vacant lot. And Parks Canada said 鈥楴o, you cannot sell a vacant lot. You need to sell a new build,鈥欌 Reed said.
鈥淲hat I鈥檓 freaked out about here is people are a couple weeks into talking with their adjusters and they鈥檙e looking at their buyout values, and they鈥檙e thinking, 鈥楾hat sounds good.鈥欌
Historian Alan MacEachern with Western University said the lease system dates back to the 1880s, shortly after Canada鈥檚 first prime minister, John A. MacDonald, and the federal government took inspiration from the United States and made Banff National Park the country鈥檚 first.
At the time, MacEachern said MacDonald wanted to make sure leases were given to the wealthy to ensure buildings in Banff, Alta., were as remarkable as the scenery.
Over the years, the government made many changes to the system, MacEachern said, such as lengthening the lease terms to 42 years from the original 21 and introducing renewable leases, but shortly after made them non-renewable again.
MacEachern said the upshot is leaseholders feel the government has too much power, while Ottawa is concerned it gave up too much control.
鈥淏asically, they set up a system in the late 1800s and early 1900s that on the one hand helped create Banff and other places but in a way made nobody happy,鈥 MacEachern said.
Nowadays, these leases don鈥檛 necessarily govern the day-to-day lives of park residents, Reed said, but they鈥檙e 鈥減owerful,鈥 frustrating documents.
鈥淎t the end of the day, for the person that鈥檚 actually buying a house, it looks normal,鈥 she said. 鈥淚t鈥檚 the lawyers 鈥 we pull our hair out.鈥
Once the lease problems are solved, Jasper homeowners need to follow two sets of rules for rebuilding.
The town鈥檚 land use policy dictates what kinds of buildings can be built and where. And Parks Canada鈥檚 building regulations covers things like acceptable home exterior colours and roofing materials.
Reed said the fire has no effect on the leases that Jasper residents hold, but rebuilding will require getting all the necessary Parks Canada approvals, just like they need for home renovations.
鈥淚t鈥檚 a pretty slow process to get development approved,鈥 she said.
However, Reed added that she鈥檚 confident Parks Canada will be flexible in the months and years to come. And officials have indicated as much.
This week, Jasper Mayor Richard Ireland and Parks Canada officials told a town hall for evacuees that an exemption will be made to the rule outlawing new mobile homes in Jasper for those who lost their mobile homes to the fire.
Both Parks Canada and the Ministry of Environment and Climate Change, which is responsible for Parks Canada, did not respond to emailed questions about leases and rebuilding in Jasper.
Jack Farrell, The Canadian Press
READ MORE: