Sun Peaks Resort LLP (SPR) has launched a lobbying campaign with the Canadian Ski Council (CSC) and Canada West Ski Areas Association (CWSAA) to gain the eyes and ears of the federal and provincial governments after Ottawa extended a ban on foreigners buying Canadian property in February 2024.
Darcy Alexander, chief executive officer for SPR, explained the resort chose to speak out about formal lobbying efforts because the extension leaves millions of dollars of new development at risk and unfairly affects three ski resorts in the province. The ban also has the potential to stall the master development plan (MDP), which plans for expected growth by developing real estate.
The legislation was designed to ease pressure on the Canadian housing crisis by reducing foreign investment in urban centres, with exemptions for areas like Sun Peaks. However, while non-Canadians can buy property at Whistler, Banff, Mount Tremblant, Blue Mountain and others, Sun Peaks, Apex and Silver Star are not exempt from the ban.
According to Alexander, the legislation creates an unequal playing field for developers trying to sell real estate in Sun Peaks, as well as a missed opportunity for buyers who might want to purchase at the three resorts impacted.
What he describes as “simply an error,” the reason the three resorts aren’t exempt from the legislation is because they fall within the census metropolitan areas (CMA) of other communities. The CMA uses census data from commuter traffic to determine how interconnected communities are, and Sun Peaks is included in Kamloops’ CMA.
Development in the lurch
The Switchback Creek development has 44 units, and Alexander said if they aren’t sold, there’s an economic impact to Sun Peaks from a tourism perspective, as well as fewer beds available for visitors who rent the properties while on vacation.
The four-phase project is currently in phase one and two, and the slow movement of real estate from the ban is giving the resort pause for continuing the project.
“One of the challenges for us in a small community is that we have to bring in almost all of our construction people…if we stopped construction, those guys that live and work here, and others that come in will go to other places like Whistler or Vancouver where real estate can be sold,” Alexander said. “Then you have a hard time getting them back to the community.”
In addition to the risk associated with building properties that might not move in the market is the sunk cost of infrastructure already invested in Switchback Creek.
“We had to build a whole bunch of infrastructure, roads and bridges and water reservoirs and all that stuff over the last three to five years to support the development of these new units,” he said. “Now spending millions of dollars more to build the units, and we’re having a hard time selling them and the foreign buyers ban is a big part of that problem.”
The investment overall is in excess of $100 million, according to Alexander.
The solutions
Alexander proposed a legislative amendment to create exemptions for controlled recreation areas or CRAs.
“Controlled recreation areas are a special designation in British Columbia for ski resorts and other resort properties,” he explained. “That designation is completely recreational and tourism-driven. If those were exempted, then there would be no problem with us.”
Before 2024, SPR, CSC and CWSAA worked under the assumption that the legislation would expire in December 2024.
“Now they’ve extended it by another two years, multiplying the harm on us,” Alexander said. “So we have to speak out. We can’t wait any longer for a resolution to magically appear.”
Paul Pinchbeck is the president and CEO of CSC, and he said the council is advocating for legislative change in several ways.
“[We’re] working directly with staffers in Ottawa, and we’re working in the various departments – housing and finance most notably, as well as engaging with our tourism colleagues in the federal government and national organizations,” Pinchbeck said. “We’re also working with engaging members of the opposition in order to keep them informed and to see what solutions they might be able to bring to bear on this issue.”
CSC also hired a lobbying agency called Earnscliffe Strategies, which has provincial and national ties.
Pinchbeck reiterated that they’ve been engaging Ottawa on the issue for two years, but the extension led to a change in strategy.
“Once the extension of the ban was announced, we felt we needed to be a little more public and much more solution-oriented. We just simply couldn’t allow this ban to go on unchallenged anymore.”
The relationships between the government of British Columbia and Sun Peaks, Silver Star and Apex should mean they are exempt according to Pinchbeck. Each of the ski areas has commercial recreation agreements with the province. He also noted that the province supports a legislative amendment despite the legislation being federal jurisdiction.
“The B.C. government has an interest in promoting and growing these tourism destinations for the betterment of all,” he said.
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