Federal government commits more than $160M to Jasper’s wildfire recovery

The fire-ravaged town of Jasper, Alta., has received two pieces of critical funding from the federal and provincial governments as it attempts to stabilize in the wake of last summer’s devastating wildfire.

The federal government announced on Thursday it’s committing $162 million to the recovery in Jasper, Alta. – a portion of which is being dedicated to interim and long-term housing.

The funding comes on top of a new $8-million commitment by the Alberta government, also announced Thursday, that’s partly being used to fill a gap in property tax revenues the town was facing as a result of number of homes lost in the fire.

The federal announcement comes after criticism from the Alberta government that the Liberal government had not invested enough in Jasper’s recovery, and that Parks Canada and the local municipality were unwilling to implement the province’s preferred style of housing.

Jasper Mayor Richard Ireland said in a statement that the federal funding is a “lifeline for families seeking stability after such a devastating event.” He also wrote that the provincial funding for property taxes is “critical” to the town’s recovery.

More than 350 structures — about a third of the community’s buildings — were reduced to rubble in last July’s wildfire, displacing a large number of the town’s permanent residents.

About $30 million of the new federal dollars will be put toward 320 interim housing units that are set for delivery by mid-month. Another $9 million will go toward helping build 240 permanent homes over the next three years.

The bulk of the remaining funding will go to Parks Canada for its costs during last year’s wildfire season and future recovery work inside the national park.

“By working together, hand-in-hand, Jasper will truly rise from the ashes as a stronger, closer-knit community,” Terry Duguid, federal minister of sport and the newly appointed Jasper ministerial lead, wrote in a statement.

The Winnipeg MP moved into the role this week after former Liberal cabinet minister Randy Boissonnault stepped down from his cabinet role last November amid questions about his former business and claims of Indigenous identity.

Jasper is prevented from building outside its tightly controlled town boundary within Jasper National Park. Its long-standing zero-per-cent vacancy rate has motivated the town to pursue multi-unit housing on the limited land available.

That vision came into conflict with the Alberta government last month when the province said it would provide $112 million for new housing, but only if the money was used for permanent single-detached homes that would take less time to build. The province also said at the time that it hadn’t received communication from the federal government in months.

The new provincial dollars, meanwhile, will bridge a gap in the town’s budget that could have forced it to pursue exorbitant tax increases on homeowners who weren’t impacted by the fire. The town passed a motion last September asking the province for specific funding to offset lost revenue. As such, more than $3 million of the provincial funding will cover the town’s property tax revenues.

Alberta Municipal Affairs Minister Ric McIver said the funding was a normal step for the province to take in the aftermath of a devastating natural disaster. He did not say whether the same property tax relief would be provided for this year but said Alberta will work with Jasper until it has fully recovered.

“We will keep touch with them about what they require in 2025 … we’re committed to working with Jasper every step of the way.”

Another $3 million will be distributed to provide one month of tax relief for all residential and business property leaseholders. Included in that is property tax relief from late July last year to the end of 2024 for evacuees who lost their homes.

To date, the Alberta government has supplied Jasper with over $178 million in relief.

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