Alberta is not what most Albertans think it is, and the drama unfolding in Canmore is a perfect illustration of this delusion.
Canmore’s transformation story started over 50 years ago, which makes it a very long and convoluted tale. Let’s start in the early 1970s, when Canmore (pop. ~1,500) was still a coal-mining town, its residents waiting with trepidation for the inevitable closing of the mine, which would happen in 1979. Seeing the end of coal, the responsible men in Edmonton began to execute a plan to maintain the Bow Valley’s role as the little economic engine that must.
In 1973 the provincial government held public hearings about the future of what was then known as the Canmore Corridor. It is unclear how much of the local public knew about the hearings or what the locals thought they wanted, but according to the Calgary Herald, “individuals and groups eager to cash in on what might become Alberta’s Golden Valley” had submitted more than 30 different development proposals. “If even half of the schemes become a reality,” the Herald opined, “the narrow corridor of semi-wilderness would be transformed into a commercial jungle.”
In the 50 years since those words were printed, Canmore (pop. ~14,500) has been transformed from a drive-by town Calgarians only stopped at on their way to and from Banff if they’d forgotten to fill up with gas, into an international tourist destination bending inexorably to the will of wealthy jet-setters and the people who serve their interests. (This probably explains why it’s the most expensive place to live in all of Alberta and much of Canada.) When Tucker Carlson came to Alberta in late January 2024, it was Canmore where he dined with our illustrious premier, Danielle Smith. Whose house they visited is unknown, but I’m guessing it was no one opposing what has certainly become a jungle of the most commercial kind.
The cumulative social, economic and environmental effects of this jarring transformation are largely why, in the spring of 2021, Canmore Town Council turned down two development plans, known formally as the Three Sisters Village Area Structure Plan (ASP) and the Smith Creek Area Structure Plan. These were brought forward by the latest of several iterations of the company that owns the Three Sisters lands, which sit below the photogenic eponymous mountains in the southwest corner of Canmore’s jurisdiction. The main rationale for council’s rejection was that the enormous scale and scope of the developers’ new plans looked nothing like the project that was initially proposed and then approved with conditions by the Natural Resources Conservation Board in 1992, and so all six councillors deemed the plans “not in the community’s best interests.”
The original vision for the property, boldly declaimed in the original company’s name, Three Sisters Golf Resorts Inc., was a grandiose proposal for luxurious hotels and several 18-hole courses, a commercial development that would have provided the owners with fat profits and the town’s residents with jobs and a meaningful commercial tax base, as well as housing for a few thousand new, mostly part-time residents. Three Sisters and the Town worked out an agreement to guide development and, in 2004, council approved the Smith Creek and Resort Centre ASPs, which reflected the commercial golf resort nature of the NRCB approval, along with 2,729 housing units, roughly the same number as in all of the Banff townsite.
Alas, it was not to be. After a decade of financial mismanagement and bankruptcies—when just a few dozen houses, including Three Sisters Golf Resorts owner Blair Richardson’s 11,000-ft2, $11-million “European-styled castle,” and two golf courses had been built—the original owners repurchased the company out of receivership for pennies on the dollar and began a years-long campaign to amend the originally approved ASPs. Fast forward to 2021, when Three Sisters Mountain Village, the new company, proposed something wholly different: a largely residential development of up to 7,000 units of mostly trophy homes, basically a second townsite roughly equivalent to the size of three Banffs. The extra 4,000+ homes would be built on an area previously set aside as a “wildlife buffer.”
The Town can’t stop a private landowner from building 7,000 mostly trophy homes.
Shocked at such temerity, a small army of Canmorites, many of whom had lived there for 20 years or more, decided this change was too much. The proposed development would consume the Bow Valley’s last remaining viable wildlife corridor and double the population of Canmore, making it unrecognizable from the already busy and insanely expensive though still somewhat authentic community it is today.
People were also concerned about the economic consequences of the proposed expansion, which presented significant long-term financial risk for the Town of Canmore. Roderick de Leeuw, a current Canmore resident who worked for Three Sisters in the late 1990s and served as the chief financial officer for the Town from 1999 to 2010, said the proposed new ASPs could create “significant net negative fiscal impact for the Town’s finances (that) continue to put pressure on the municipal tax rates.” A big part of the reason why the town had approved the initial Resort Centre ASP was the commercial tax base it would create. Construction and maintenance of residential infrastructure—roads, sewers, water—is expensive, and without the additional revenues from business taxes, the municipal taxes paid by residents, already high, would only increase.
De Leeuw’s comments came as part of a seven-day public hearing where more than 200 very engaged residents provided 110 hours of testimony, 95 per cent of which was critical of, even hostile to, the Three Sisters Mountain Village proposals. So, it’s perhaps not surprising that when the time came, Canmore’s town council overwhelmingly rejected first the Smith Creek ASP, in April 2021, and then, a month later, the Three Sisters Village ASP.
“I have to agree with my fellow councillors; I will not be able to support this,” said Esmé Comfort, a 40-year resident of Canmore and the oldest member of council. “We have to keep our heads clear and set aside our bias and look at the facts…. I tried to do that. I tried to approve this plan in my own mind, because it would get rid of the uncertainty. But it felt like putting on a pair of shoes that were too small. There were too many things that were not addressed.”
The lone supporter was a shocked Mayor John Borrowman, a potter and small businessman who had moved to Canmore in 1974 and who wanted desperately to bring an end to three decades of tumult. “I’m disappointed, of course. I saw this as an opportunity to bring some balance to our community…. The growing imbalance, particularly the social imbalance that we experience today in our community is, in my opinion, going to get worse. But I certainly will support the decision of council. Council’s decision is always right, whether or not I voted the same way as the rest of council.”
Many Canmorites celebrated as if they’d just won the World Cup. Karsten Heuer, a long-time Canmore resident and wildlife biologist for Parks Canada, said he was elated at the development’s rejection. “We were reminded that democracy still works in Canmore,” he told the Calgary Herald. “It was a huge outpouring of concern in the last five months.”
By the time I moved to Canmore in the late 1990s (pop. ~10,500), hoping to settle down and raise my soon-to-be daughter there, the benches above the valley bottom where the old town sits were a sea of brand-new, mostly fancy houses (of which I rented one of the most modest). The infamous Peter Pocklington had built Rundleview Estates on the west side of the valley shortly before the world arrived on Canmore’s doorstep for the 1988 Winter Olympics. Over the next decade, construction continued non-stop on the benches along the northeast side of the valley, with obligatory names reflecting the natural values that were literally being torn up and paved over: Silvertip, Benchlands, Eagle Terrace, Cougar Point (and Creek) and so on.
Meanwhile, the growing population of Canmore—including and especially the concerned environmentalist types, which included me—was spreading out in every direction. Not content with enjoying the views and counting the birds, we experienced the forests and mountains by foot and wheel and ski, running and rolling and gliding on a network of trails that seemed to grow exponentially each time the earth made its way around the sun.
At around the same time as provincial government officials started eradicating trails and closing some areas to recreation to ensure the wildlife corridors remained functional, unknown monkey-wrenchers, armed with more than passing knowledge of the workings of heavy machinery, poured sand into transmissions and hydraulic lines, and corrosive chemicals into fuel tanks. They ruined eight backhoes, loaders and bulldozers on Three Sisters land, and caused hundreds of thousands of dollars in damage, slowing (but not stopping) the construction of the next subdivision to be added to Canmore’s ever-expanding waistline.
A big part of the conflict was that the provincial government had never bothered to develop a long-term land-use plan for the Canmore Corridor or conduct a meaningful environmental assessment on any of the developments, except for Three Sisters. The Bow Valley became the same kind of free-for-all that also plagued other areas during Ralph Klein’s tenure as premier, most notably the reckless expansion of the oil sands in the 1990s and 2000s.
For locals such as Ron Casey—who moved to Canmore as a young electrician in 1973 and would eventually become a town councillor, the longest-tenured mayor in the town’s recent history and an MLA of the Progressive Conservative persuasion—the rapidity with which the provincial government sold land to developers made it almost impossible for the local government to keep up with the onslaught of development proposals.
“Certainly, in the late ’80s, early ’90s, there was almost the sense of being under siege. You had people coming in that had way more capacity than anyone locally had ever dreamed would show up on our doorstep,” he said, in a frank interview with Jeremy Klaszus on the Sprawlcast. “And there was a bit of concern in the community that we were being outweighed, that these people were all politically connected… and they had way more capacity to deal with the province, to manipulate some of the outcomes that the community wouldn’t have the same say in.”
Although nothing was ever proven, the fire sale of Bow Valley public land after the 1988 Olympics reeked with the stench of corruption.
It has become the same kind of free-for-all that plagued other areas in Klein’s tenure.
In 1989, the year Ralph Klein was elected as an MLA and became environment minister, the Canmore Alpine Development Company bought “a remarkable piece of [public] land” just north of downtown Canmore, on the lower slopes of Mount Lady Macdonald. The majority owner of CADCO happened to be Hal Walker, a major PC fundraiser and Klein’s political adviser and dear friend, who would later go on to become a key figure in the rise of the Wildrose Party. Klein apparently exempted Walker’s SilverTip golf resort, located right on the boundary of Banff National Park, from an environmental review, even though the Three Sisters golf resort would need to undergo a review by the Natural Resources Conservation Board that Klein had recently created.
Walker, who was the president of Klein’s Calgary-Elbow constituency at the time, denied that his political connections had anything to do with his get-out-of-environmental-review card. In the 1992 Legislature, NDP MLA John McInnis asked the now-premier about this apparent conflict of interest and said “this sort of half-baked, piecemeal approach will result in numerous lawsuits and possibly another federal environmental review at the end of the day.” Klein just shrugged it off. “The hon. Member for Edmonton-Jasper Place is talking about a fine gentleman, one of the finest gentlemen to walk the face of the earth, which is a lot more than I can say for this individual,” Klein said. “With respect to Canmore Alpine Development, that project was initiated in 1986, long before the NRCB was a notion. The proponent played by all the rules of the day. This member would have that proponent go back and be subjected to rules that were put in place long after he received all the permits and the necessary regulatory approvals that were required at that time.”
Klein’s contempt for the injustice of retroactivity, however, was apparently one-sided. Meanwhile, Three Sisters investors, 66 of what the Calgary Herald called “powerful and politically well-connected business people”—including Richard Melchin, whose brother Greg would become a three-time PC MLA and energy minister; one-time mining minister Bill Dickie; and Calgary Olympic Committee president Frank King—had become worried the Town might interfere with their ability to develop the lands. So in 1995 Klein’s government decided to provide some much-needed security for the Three Sisters cabal, amending the Municipal Government Act (MGA) by adding section 619, which gives the province, not the town, jurisdiction over projects that have been approved by the NRCB. Although the NRCB’s Three Sisters decision had been made three years earlier, s. 619, now known as the Canmore Clause, was made to apply retroactively to all NRCB decisions.
Just like that, the Town’s ability to determine its own fate had been neutered.
In rejecting Three Sisters’ 2021 development plans, Canmore’s councillors understood what many of the more strident opponents of the development didn’t: this wasn’t the end of the battle, not by a long shot. The issue was not development or no development. Three Sisters still had approvals from 2004 for the Resort Centre and Smith Creek, and they were well within their rights to bring amended versions back to council again and again until a mutually beneficial compromise was reached. One of the sentiments expressed time and again by the councillors was that they weren’t opposed to development, but the size and scope of the proposal was overwhelming. The development needed to meet the needs not just of the developer but of the community, to make the community, as it saw itself today, better.
Blair Richardson and Don and Dave Taylor, the owners of Three Sisters, didn’t see it that way. Surely aware of their privileged position in Alberta’s oligarchical tradition, they must have decided they’d already made their final offer and were done negotiating. They immediately appealed council’s decision to the Alberta Land and Property Rights Tribunal, a quasi-judicial body much like the NRCB. They also filed a $161-million lawsuit against the Town of Canmore. Named in the suit were all the councillors who voted against the plans—Esmé Comfort, Jeffery Hilstad, Joanna McCallum, Karen Marra, Vi Sandford and Robert Seeley. Even mayor Borrowman made the list, though he was the only one to vote to approve the Three Sisters Village ASP.
The rest was a foregone conclusion. Six months later, in May 2022, the Tribunal reversed Canmore council’s decisions and mandated that the two Three Sisters ASPs be allowed to go ahead. The Town appealed, but the Alberta Court of Appeal eventually concurred with the Tribunal. Canmore could not prevent a private landowner from building a large residential development that would double the size of the town, because, the logic went, the NRCB had assessed and approved a golf resort 30 years ago.
In Canmore, October 24, 2023, will go down in infamy. On this day the newly elected councillors gathered to approve, against their will, the court-ordered Three Sisters ASPs. It was like a scene out of Arthur Koestler’s Darkness at Noon. First, the members of the previous council who had been re-elected—Joanna McCallum, Karen Marra and Jeff Hilstad—recused themselves and left the room because they are still being sued by Three Sisters Mountain Village, and their lawyers had told them the less said the better.
Sean Krausert, a long-time resident and the new mayor, who, when the ASPs were rejected in 2021, had opined that “the right decision is being made!,” gave a longish speech to, in his words, “reflect on how we got here.” Specifically, Krausert, a lawyer, wanted to express his concern about the locals who were complaining the process had been “undemocratic” and those who suggested the mayor and council should resign rather than approve the ASPs.
That’s “easy for someone to say who has not been elected and [doesn’t have] a fiduciary duty to the municipality to uphold,” said Krausert. “It’s also easy for someone who is not subject to a code of conduct or obligations under the MGA; it’s easy for someone who does not face legal ramifications, whether that be contempt of court or potential civil liability or bolstering lawsuits already against the municipality. And what would be accomplished by such? Nothing. The ASPs would still get implemented, but only after Municipal Affairs comes in to handle things, which will serve no one.”
Each of the three remaining councillors said their piece. Two of them, Jeff Mah and Wade Graham, were reluctant to vote yes but knew they had no choice. When it was time to vote, Mayor Krausert suggested they use “a little bit of a different system” this time. Instead of hands or speech, which would be captured forever in the video record, they would use their microphone lights, which would not be visible. “Light on if you’re in favour, leave it off if you’re not.” Lights on won.
Canmore’s inability to fend off unsustainable development is the norm in this province.
Canmore’s giant new development is “the biggest bait and switch ever,” wrote Jacob Herrero in an email to me. Herrero’s family moved to the town in the 1970s, when his father started studying grizzly bears in Banff National Park, and he still lives there today. He’s an environmental scientist and engineer, and has crunched the data in the various ASPs. “It starts out as Three Sisters Golf Resorts Inc. proposing multiple golf courses, conference facilities etc.… and morphs into plain-vanilla urban development, something the NRCB isn’t even supposed to review.”
Last October a group of about 20 Canmorites with Bow Valley Engage, frustrated at the undemocratic nature of the regulatory process that approved Three Sisters Mountain Village’s new plans, drove to Calgary and parked themselves in front of Don Taylor’s Mount Royal mansion with signs reading “Stop TSMV” and “Save Grizz Corridor.” Five police cars soon showed up.
Karsten Heuer was among the demonstrators, and he knew they were well within their rights to protest against the negative impacts of the project. “We’ve been pushed to the extent that we feel it’s time to actually air this thing out for what it is, and who the people behind it are,” he told The Narwhal. There are bronze statues of grizzly bears and elk on the Taylors’ lawn, he pointed out. “Those are the very things they’re putting at risk” by shrinking wildlife corridors, he said. Heuer is backed up by recent research in the Bow Valley, which shows connectivity has already been reduced to 21 per cent for grizzlies.
The Canmorites’ exercise of their Charter right “to participate in peaceful demonstrations and protests,” including on public streets, sent Blair Richardson into a paroxysm of outrage. “It’s essential to ask who these people are and whether they respect the principles of the law and unbiased court decisions,” he wrote in an open letter published in the Rocky Mountain Outlook. “Given the immense contributions of the Taylor family to Alberta and Canada, such treatment appears immoral, unjust and unethical.”
And then Richardson threatened his fellow Canmorites with a reminder of Three Sisters’s $161-million lawsuit that has “the potential to severely impact the financial stability of the town”—above and beyond the residential-heavy, commercial-light development he has foisted upon Canmore—“and residents’ tax obligations. With the benefit of the previous legal decisions in favour of Three Sisters, it is likely that financial damages will be awarded to Three Sisters.”
This sort of rhetoric sounds suspiciously old-fashioned and authoritarian, a frustrated Lord of the Manor chastising his peasant underlings for daring to challenge his wealth and authority. It also reveals a great deal about Richardson’s values and the rationale for the $161-million lawsuit against the Town and its councillors. University of Calgary law professor Shaun Fluker characterized the lawsuit as a SLAPP (or “strategic lawsuit against public participation”). According to the U of C Public Interest Law Clinic, filing a SLAPP is “a common tactic employed by claimants with superior resources or relatively easy access to the courts to force political opponents into a legal battle and intimidate them away from participation in political dialogue.”
“I think it’s noteworthy that the individuals named in the claim abstained from the council deliberations,” Fluker told The Narwhal. “So right there you’re seeing, seemingly, a connection between the litigation and [councillors’] ability to perform their public responsibilities. It’s highly problematic.”
It’s also an illustration of the privileged Conservative political culture that has evolved in Alberta over the last 50+ years, the same period of Canmore’s transformation from small town to billionaire wilderness.
I’ve lived in Canmore and written much about the political and economic machinations of Alberta’s conservative approach to economic development for the last three decades. It comes as absolutely no surprise that a grandiose real-estate mega-development that will largely benefit anonymous rich people, most of whom only spend a few weeks in town in any given year, prevailed over balanced economic development, a healthy landscape and a sustainable community.
Canmorites, especially those nature-lovers who moved to town long ago for the slow, quiet life of a former mining town on the edge of a national park, shouldn’t be ashamed at having lost the battle. They aren’t alone. The Town’s inability to fend off unsustainable development is the norm in this province. Decades of entrenched neoliberal rule has ensured that economic development and corporate interests always trump other aspects of the public interest. It’s the cardinal tenet of the Alberta Advantage.
Just listen to Chris Ollenberger, director of strategy and development for Three Sisters Mountain Village, rationalize the scheme. “This project falls into a category of provincial significance. It was deemed to be a project in the interest of the province, and so it has an order-in-council approval from cabinet that says this project will proceed,” he told Jeremy Klaszus. “The intent behind it was [that] if the entire province kind of thinks it’s good from the provincial government point of view, [then] a more localized subset of individuals wouldn’t be able to say ‘But we still don’t want it.’ ”
Alberta’s entire legal and regulatory regime has been specifically designed to both facilitate expedient development, be it of a subdivision or a coal mine, and provide the façade that it’s being done in a manner that is socially and environmentally responsible. This charade is necessary because, from the provincial government point of view, every major industrial project ever proposed—with the recent exception of much-needed clean-electricity infrastructure—is both “good” and “deemed to be in the interest of the province.” Inevitably “some localized subset of individuals”—a First Nation, say, that doesn’t want toxic leaks of effluent in its water supply, or a federal agency responsible for upholding federal laws, or the residents of a town that wants to salvage the last vestiges of a meaningful wildlife corridor—would prefer that, for once, their government account for the negative externalities of its reckless economic policies, but their concerns almost always fall on deaf ears.
Here are just a few of many examples during the same 30-year period that Three Sisters has been trying to build a golf resort, er, residential housing development, against the wishes of much of Canmore’s local population.
Against fierce opposition by the Piikani Nation and a host of Alberta environmentalists, the provincial government built the Oldman River Dam in the late 1980s and early 1990s to increase irrigation for commercial crops. Like development in Canmore’s Valley of Gold, it did so without an adequate environmental review or sufficient consultation with First Nations. The province also didn’t bother to get the necessary federal permits, and so one of the “localized subset of individuals” that didn’t want the dam because of its enormous adverse environmental impacts called the government’s bluff and took the case all the way to the Supreme Court of Canada. And won.
Inconveniently for the provincial government, which fought the case all the way, the SCC ruled that the federal government had to conduct an environmental impact assessment, and when it did, the panel concluded “that the environmental, social and economic costs of the project are not balanced by corresponding benefits and… that, as presently configured, the project is unacceptable.” They recommended the dam be decommissioned “by opening the low-level diversion tunnels to allow unimpeded flow of the river.”
The Alberta government, even without the putative legal might of a Sovereignty Act, refused. Last winter the reservoir behind the dam dropped to its lowest level in 30 years, and, unlike during the pre-dam natural river flows, the MD of Pincher Creek couldn’t pump water from the depleted reservoir, which looked more like a desert than a waterbody.
Here’s another one, from about the same time. Against fierce opposition from First Nations and the residents of Athabasca, the Alberta government approved the construction on the Athabasca River of North America’s largest pulp mill, despite the fact the province’s Environmental Impact Assessment Review Board in 1990 recommended “that the proposed pulp mill should not be approved at this time,” because there already were several other polluting pulp mills on the Peace–Athabasca river system upstream from several First Nations communities. Premier Klein, ever generous to large corporations, also provided a $264-million interest-free loan as part of what he himself referred to as a “sweetheart deal.”
At the announcement of the multi-million-dollar gift, Klein, heckled by protesters over what they perceived as a gross injustice, clenched his left fist and gave them the finger with his right. He was sending the same message that any “localized subset of individuals” receives from the Alberta government when they oppose a damaging industrial project, though generally the message is translated into more genteel language, such as “nonetheless, it’s deemed to be in the interest of the province.”
Dozens of such stories emerge from the Klein era, but he is perhaps most famous for “revamping” Alberta’s environmental regulatory regime while a minister and then, as premier, loosing a largely unplanned and unregulated oil sands industry that turned northeast Alberta into one of the biggest and most polluting industrial sites in the world (though you’d never know it from industry and government propaganda).
Even Alberta’s reluctant mainstream media report on the gargantuan levels of pollution, the unsecured cleanup liabilities, on yet another cover-up of pollution leaking into the Athabasca River and risking the health and well-being of yet another of those pesky “localized subsets of individuals,” this time First Nations, whose constitutionally protected treaty rights have most assuredly been broken.
How was this allowed to happen? According to James Heydon in Sustainable Development as Environmental Harm, it’s because Alberta’s regulatory system is designed to maximize economic growth at the expense of all other interests. As part of his research Heydon interviewed 33 current and former senior officials in the provincial bureaucracy and the oil sands industry. He anonymized the interviewees so they could be more open and honest, which allowed for some of the quiet parts—usually hidden behind a smokescreen—to be said out loud.
Participant B, for instance, from the Alberta Energy Regulator, made it very clear that once a major project gets to a hearing, it will be approved. “And none of that… [is] actively transparent. It’s not in the hearing room, we don’t issue notices, we don’t tell people this is going on. It just happens.” Participant F, a senior member of the energy regulator, explained it this way: “We’re a development regulator. We do want development to take place, we believe that’s inherently in the public [interest].”
For anyone who follows these issues in Alberta, Heydon’s book confirms what we already know by now—and helps explain how a proposed coal mine on the Eastern Slopes, which was publicly opposed and rejected by both the federal and the provincial governments, a decision upheld by three different courts, is still alive and well when it should be “legally dead,” as Nigel Bankes, a University of Calgary emeritus professor of resource law, put it. Instead the Danielle Smith government has decided that the mine deserves another hearing—just the latest workaround to ensure “development takes place” no matter the costs.
All of this should sound familiar. The irony for Canmore is that Klein’s philosophy, which created enormous wealth for oil sands companies and a great many of the people who have recently moved to or invested in Canmore, is also at the root of Canmore’s development dilemma.
Klein’s legacy lives on in the likes of Premier Smith, who, at Tucker Carlson’s Calgary event, proudly introduced herself as a defiant libertarian conservative. She was delighted in 2023, the hottest year in the last 125,000 years, to curtail clean wind and solar projects in Alberta while pledging to double production in the oil sands.
Canmore’s fate, I’m afraid, is sealed.
Jeff Gailus grew up in Calgary and now lives in Montana. He is the author of Little Black Lies: Corporate and Political Spin in the Global War for Oil and is now writing a memoir.
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