Kananaskis golf course rebuild to go ahead

The Alberta government says a controversial plan to rebuild the golf course in Kananaskis country, badly damaged in the 2013 flood,will go ahead.

• Kananaskis golf course contract will be reviewed by auditor general

An independent report by Deloitte LLP has concluded that rebuilding the course is in the best interest of taxpayers because breaking the contract put in place by the former Tory government would leave the province open to millions of dollars in liabilities, saidShannon Phillips, minister of environment and parks, at a news conference on Wednesday.

"We had to make the best of a bad situationhere," she said. "Neither option is ideal."

Thereport concluded that deal withKan-Alta Golf Management Ltd. makes it impossible to end the arrangement without significant cost to government.

ThePCswelcomed the announcement, sayingit's good to invest in the province's tourism industry.

"The conclusion of the Deloitte report shows very clearly the decision to rebuild when I was minister of parks was the right decision and I'm pleased about that," saidRichard Starke, the MLA for Vermilion-Lloydminster and PC critic for parks and recreation, in a release. "The arrangement we arrived at in 2014 was the right arrangement, so it's good to see this government will go ahead with that rebuilding work."

Costs to be mostly offset by federal funds

The cost of rebuilding the course will be mostly offset by federal funds that have been pre-approved through the Disaster Financial Assistance Arrangements, the government says.

It will cost the province between $3.8 million and $8.8 million, depending on how much money the province gets from an increased $5-millionfederal flood mitigation fund.

We will not throw good money after bad.- Minister Shannon Phillips

"Let me be clear: we do not believe government should be in the golf course business," Phillips said earlier in a release.

"Unfortunately, the contract we inherited locks our government into either rebuilding, or walking away and leaving Alberta taxpayers on the hook for millions of dollars now and further financial risk into the future. We will not throw good money after bad."

The course is expected to be ready for golfers again by 2017.

Once it's operational, a portion of the revenue it generates for the province will be used to renovate William Watson Lodge, a facility intended forpeople with disabilities to enjoy the mountains at a reasonable cost, Phillips said.