The District of Squamish rejected a $142 million community enhancement and tax exemption deal proposed by Woodfibre LNG, choosing instead to rely on regular property taxation for the major industrial facility. According to the District of Squamish, council members voted 5-2 during a special business meeting to decline the proposed 10-year agreement, which would have commenced in 2027 and resolved three existing lawsuits filed by the company regarding 2025 and 2026 taxation.
Council Vote Rejects Woodfibre LNG Payment Agreement
During the Sept. 22 meeting, municipal leaders weighed the financial package against long-term community risks and escalating municipal costs. Woodfibre LNG represents the only property in the district classified as a Class 4 Major Industry, according to municipal records. The rejected community enhancement payment agreement (CEPA) and revitalized tax exemption (RTE) package would have directed $117 million toward direct community payments for wastewater, stormwater repairs, flood protection, recreation, transportation upgrades, and climate adaptation. An additional $25 million—capped at $2.5 million annually plus inflation—would have come through the RTE.
Coun. Jenna Stoner brought forward the motion to decline the agreement, telling the council that the deal fell short of community needs. According to Stoner, the core payments lacked indexing to inflation while municipal costs continued to climb over a 10-year horizon, placing undue risk and liability on the district. Coun. Lauren Greenlaw seconded the motion, stating that accepting terms outside standard tax legislation stripped away essential municipal protections and set a problematic precedent for other communities facing planned liquefied natural gas facilities.
Diverging Perspectives on Industrial Taxation in Howe Sound
Mayor Armand Hurford, alongside Councillors Andrew Hamilton and Chris Pettingill, joined Stoner and Greenlaw in voting down the proposal. Mayor Hurford stated that the agreement failed to provide enough community control and visibility throughout the process, though he noted the vote does not preclude future negotiations with the company. On the opposing side, Councillors Eric Andersen and John French voted to support the deal. French acknowledged the difficulty of the decision amid community pushback, arguing that the negotiated figure represented the best available option for establishing what the facility should pay in taxes.
Community advocacy groups welcomed the council’s decision. Tracey Saxby, co-founder of the environmental advocacy group My Sea to Sky in Squamish, expressed relief over the outcome. According to Saxby, residents avoided a substandard tax arrangement that would have established a below-average tax rate compared to other British Columbia municipalities hosting major industries.
Did you know? Woodfibre LNG operates a natural gas liquefaction and export facility located in Howe Sound near Squamish, B.C., making it the single Class 4 Major Industry property within the municipal tax base.
Frequently Asked Questions
Why did the District of Squamish reject the Woodfibre LNG deal?
Council members cited a lack of inflation indexing on core community enhancement payments, insufficient protection against escalating municipal costs, and concerns over setting a precedent for industrial taxation.
What financial value was proposed in the agreement?
The rejected 10-year package totaled $142 million, split between $117 million in direct community infrastructure funds and $25 million via a revitalized tax exemption capped at $2.5 million annually plus inflation.
Will Woodfibre LNG still pay municipal taxes?
Yes. Without the special enhancement and exemption agreement in place, the district will continue to collect revenue from the facility through regular property taxation.
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