Flagstaff County has approved a tax payment agreement with Rally Canada Ltd. that gives the company an opportunity to repay nearly $300,000 in overdue municipal property taxes while avoiding penalties if it meets strict conditions.

Council approved the agreement at its July 8 meeting after reviewing a proposal submitted by the company in late June. Under the agreement, Rally Canada will repay $297,358.09 in 2024 and 2025 tax arrears through monthly payments of $10,000. Tax penalties will only be forgiven once all conditions of the agreement have been satisfied.

According to the administration report, Flagstaff County had already begun legal action to recover the unpaid taxes after several unsuccessful collection attempts. A Statement of Claim was filed in March 2026.

The total amount owing includes $248,222.50 in unpaid tax levies and $49,135.09 in accumulated penalties.

Administration recommended the agreement include several safeguards to protect the municipality. Rally Canada must remain current on all future property tax obligations, pay its 2026 property taxes in full by Oct. 15, 2026 and satisfy every condition of the agreement before any penalties are waived.

Council accepted the recommendation, allowing the repayment plan to proceed while preserving the county's ability to enforce the agreement should the company fail to meet its obligations.