The County of Stettler has approved a lease agreement with the Buffalo Lake Meadows Owners Association that will allow new recreational facilities to be built on municipal reserve land at Buffalo Lake.

Council considered the agreement during its June 24 regular meeting. The lease follows council's approval in June 2024 of grant funding for park improvements within the Buffalo Lake Meadows subdivision.

Administration noted the proposed development is larger and more complex than projects typically completed by community associations. As a result, a formal lease agreement was required to clearly define responsibility for construction, operation and long-term maintenance.

The project includes a picnic shelter, sports court and volleyball court. Plans also include a fenced asphalt multi-sport pad, equipment storage buildings, picnic tables, benches, landscaping, retaining walls and lighting for the sports area.

Under the agreement, the Buffalo Lake Meadows Owners Association will pay for and manage the construction of the facilities. Before work begins, the association must provide the county with construction plans and specifications, obtain all required permits and ensure the work complies with applicable laws, codes and standards. The county must also approve contractors before construction starts.

The land will remain a county-owned municipal reserve. The lease states the public must continue to have access through the larger reserve parcel unless the county directs otherwise. The county will also retain access for maintenance, repairs and emergencies.

The association will be responsible for maintaining both the leased area and the new facilities in good condition and must report any damage, safety concerns or maintenance issues to the county. Motorized vehicles or equipment will not be permitted on the site without prior written approval from the county.

The agreement sets annual rent at $1 for an initial 10-year term. A second 10-year term may be granted if the association meets its obligations. Either party may terminate the agreement by providing 120 days' written notice.

While the lease remains in effect, the improvements will belong to the association. When the lease expires or is terminated, ownership of the facilities will transfer to the county unless both parties agree otherwise in writing.

The request for decision stated there are no immediate financial costs to the county. However, once ownership transfers, the county could become responsible for future maintenance or replacement of the facilities.

The association must also maintain $2 million in liability insurance throughout the lease term. The agreement includes indemnity provisions outlining the responsibilities of both the county and the association.

During council's discussion, Director of Planning and Development Craig Teal explained the association would have the ability to reserve the facilities for specific events, temporarily limiting public access. At all other times, the amenities would remain available for public use. He said the association's exclusive booking rights are the reason a lease agreement is being used rather than a maintenance agreement.

Council approved a motion authorizing the County of Stettler No. 6 to enter into the lease agreement for a portion of Lot 38MR, Block 1, Plan 062 0721 for the construction and operation of a community event area. The motion carried with all councillors in favour except Coun. Clint Walker, who opposed it.