If it is legal does this open up the possibility that anybody trying to start a business in the Pass could approach council for initial funding? If council was in agreement could that funding then be provided from municipal reserves?
Unapproved Council Minutes state Best Western/ Vachon funds came from a Municipal Land Reserve Account - see their website or image at bottom of this note.
Section 671 (2) of the MGA 671 states municipal reserves can only be used for specific items, not hotels or economic development - see excerpt.
MGA Section 671 (4) states municipal reserve monies must be separately accounted for -- see excerpt.
With the following information from the MGA
Division 9
Use and Disposal of Reserve Land
Use and Disposal of Reserve Land
671(1) Subject to section 676(1), environmental reserve must be left in its natural state or be used as a public park.
(2) Municipal reserve, school reserve or municipal and school reserve may be used by a municipality or school board or by them jointly only for any or all of the following purposes:
(a) a public park;
(b) a public recreation area;
(c) school board purposes;
(d) to separate areas of land that are used for different purposes.
(2.1) Community services reserve may be used by a municipality for any or all of the following purposes:
(a) a public library;
(b) a police station, a fire station or an ambulance services facility, or a combination of them;
(c) a non‑profit day care facility;
(d) a non‑profit senior citizens facility;
(e) a non‑profit special needs facility;
(f) a municipal facility providing service directly to the public;
(g) affordable housing.
(3) Despite that land is designated as municipal reserve, school reserve or municipal and school reserve, the municipality and one or more school boards may enter into any agreement they consider necessary with respect to a use referred to in subsection (2) or for any matter related to the use.
(4) Money provided in place of municipal reserve, school reserve or municipal and school reserve and the interest earned on that money
(a) must be accounted for separately, and
(b) may be used only for any or all of the purposes referred to in subsection (2).