Introduction

The establishment of First Nations reserves in urban settings is a relatively new development in western Canada. Whereas cities in western Canada have expanded to encompass existing reserves, Saskatchewan is home to the unique occurrence where new First Nations reserves are being created directly within existing municipal boundaries.

In 1992, the Saskatchewan Treaty Land Entitlement Framework Agreement was signed and twenty-eight of 70 First Nations in Saskatchewan were allocated a potential share of $446 million to purchase land with an allowance to enter into agreements with municipalities with the intention of formal reserve status designation. The potential for economic development through the acquisition of urban property was now possible for First Nations peoples.

Since that time, 28 new urban reserves have been created in Saskatchewan, the first one in Saskatoon in 1988. Of these 28 urban reserves, nine have been created in cities, which include Saskatoon, North Battleford, Prince Albert and Yorkton.

The purpose of this report is to provide some historical context to the creation of new urban reserves, discuss some of the experiences associated with establishing these reserves, and explore the some of the economic impacts associated with these reserves. In looking at economic impacts, the report focuses on business and employment creation and municipal costs and benefits related to servicing and taxation.

The terms used in this report reflect the current terms used by Indian and Northern Affairs Canada (see Appendix).

Background

Urban Reserve: A Definition

An Urban Reserve is land that has received official Indian Reserve status from the Federal Government and is located within a municipality or a Northern Administration District.¹

Historical Context in Saskatchewan

The Saskatchewan Treaty Land Entitlement Framework Agreement (TLEFA) was brought about to resolve the outstanding treaty land entitlements of 28 First Nations in Saskatchewan and to calculate total land compensation value owed to each. Funds (approximately $446 million) were allocated to the First Nations for the unsettled claims, allowing them to make land purchases. The TLEFA permitted First Nations to enter into agreements with municipalities to purchase land with the intention of formal reserve status designation. These parties realized the potential for economic development through the acquisition of urban property.

Article 9 of the Saskatchewan Treaty Land Entitlement Framework Agreement prescribes the requirements and conditions for urban reserves within Saskatchewan. This section allows for the reconciliation of the differing legal environments that govern reserve and non-reserve property in urban areas and facilitates the creation of agreements, which remedy this.

Subsection 9.01 outlines the requirements for agreements between the Entitlement Bands, municipalities, and affected school divisions. Compensation through a servicing agreement or another form of payment scheme is required for loss of taxes, levies or grants by municipalities or school divisions, with the sum not necessarily equal to the amount of the loss and taking into account any benefit accrued by the Band from any affected school divisions. It is set out that this compensation is the sole responsibility of the Band and neither Canada nor Saskatchewan is required to compensate anyone. The Article provides that agreements must address issues of compatibility between municipal/Band bylaws in their application and enforcement and appropriate dispute resolution mechanisms.

Flexibility is allowed for parties to vary from the format of agreement as prescribed in subsection 9.01 in order to draft an agreement that meets their needs and objectives. However, it is stipulated that if there is no agreement between the Band and one or more of the parties within five months, where the Band is willing to enter into an agreement, but the other party won't respond reasonably and in good faith, Canada can set aside land for a reserve without an agreement. Any disputes regarding this situation can be referred to the Arbitration Board by Canada, Saskatchewan or the affected Band – with the city/school division receiving standing before the Board upon request. In the event of a dispute in front of the Arbitration Board, the above situation of Canada setting aside a reserve without an agreement will be delayed until the Board reaches a decision. This provision ensures that the municipality does not carry a veto power in refusing to negotiate an agreement. It was realized that it was necessary to avoid giving municipalities veto power over reserve creation as it was recognized that a significant level of resistance could exist either in municipalities themselves or through pressure from the community.

Agreements made under subsection 9.01 are subject to expiration 15 years from their execution date – with a prescription for parties to enter into good faith negotiations to determine the future of the agreement as soon as possible following the 14 th year after the execution date. If no agreement is reached by the expiration date, the provisions of subsection 9.01 will continue to apply for three years after which time, if parties still have not reached a new agreement, Canada will apply the current policy on reserve creation as a substitution for urban reserve policy.

Potential Impacts of Urban Reserves

The main purpose of creating urban reserves is for First Nations to achieve a higher level of economic self-sufficiency for their communities and governments.

Potential Economic Impacts of Creating Urban Reserves:

• More potential for self-generating revenue than on rural land and reserves;
• Increased employment opportunities for First Nations closer to growing populations of urban First Nations;
• Urban reserves create an environment for the successful development of First Nations owned businesses .

Potential Community and Social Impacts of Creating Urban Reserves:

• Reduced dependence on federal government funding;
• A raise in the standard of living for its members;²
• Increased ability to contribute to meeting social services needs in urban areas, as well as on parent reserves in rural areas;³
• Urban reserves help First Nations meet their cultural and political development objectives;
• Urban reserves provide a cultural environment for First Nations' members to interact as entrepreneurs, clients, educators, students and public citizens;⁴
• Urban reserves also provide a centralized location for aboriginal government businesses and organizations to operate. This is beneficial for the delivery of social and educational services.

Potential Impacts on Community in which Urban Reserves are established:

• Municipal governments benefit from increased revenue from service provisions;
• Stronger linkages between First Nations and municipal governments;
• Increased demand for professional services during the development of urban reserves;
• Positive impact on local real estate markets.

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