The following submission is from an essay I wrote for an academic research study. I have attempted to alter it to make it more ‘blog’ friendly. Please provide your input or any thoughts you might have to contribute to the discussion.
Introduction
South Ditch Lake Recreational Co-Op Ltd. is an association of cabin/cottage owners situated next to the shores of Ditch Lake, Manitoba. It was incorporated as a Recreational Co-Op in 1992. Its location is valuable because of its close proximity to one of Canada’s National Parks. Problems have emerged as a result of changing demographics, cultural, social, and biophysical issues. Additional problems involving economic and legal issues have been exposed. A precarious situation has made Ditch Lake into an affordable housing suburban instead of the intended Recreational Co-Op. The intent of the following discussion is to share some findings I feel relevant.
Background
The lake received its name from William Henry Ditch who homesteaded on part of the lake in 1878. The region is mostly a farming community settled by Scandinavian immigrants in the later part of the19th century. Prior to the 1950s Ditch Lake was visited as a recreational picnic, berry picking, camping, fishing and hunting grounds by the surrounding communities. Ditch Lake’s geographic location is notable for being only 10 kilometres south of Clear Lake in Riding Mountain National Park. The close proximity has afforded the Ditch Lake visitors a natural habitat and a lake as well as the opportunity to avoid more excessive levies and expenses in National Park boundaries.
In 1952 the Provincial Government granted vacated land (believed to be a former school quarter) to the local Rural Municipality who in turn leased the land to the local Chamber of Commerce. The Chamber of Commerce then leased the land for camping. The one common value of Ditch Lake leasers’ was a camping recreational area for families at a lake setting. For many years Ditch Lake remained mainly a summer family destination, with a few who challenged the cold winters for hunting and fishing. Over time a progression of tents to more comfortable and permanent cabins evolved. Between 1950-1990 common picnic and beach areas were cleared, kitchenettes and roads were built, wells for fresh water were installed, hydro and lighting services were provided and phone lines were made available.
In 1991 the provincial government had change of interest with Ditch Lake and presented the opportunity to sell the land. This presented a risk to the cabin owners of losing their existing campsites if a developer purchased the land. The Ditch Lake leasers pooled resources to form a Co-operative. The province of Manitoba incorporated The South Ditch Lake Recreational Co-Op Ltd. in 1992 and registered its description as a recreational camping grounds and trailer park. The purpose is intended to fulfil the provision to the members with social and recreational facilities and services on a cooperative basis. Each cabin owner bought one equal share at an equal price which raised the funds necessary to purchase the land.
The Problems
Demographic issues
• After the Co-Op was formed changes of members’ demographic became evident. The generation which began leasing the land in the 1950s were aging in the 90’s resulting in ownership turnover. With new ownership came new desires, wants, values, beliefs, interests and issues.
Cultural issues
• Capitalistic attitudes became controversial with the socialistic philosophy of the Co-Op. The heart of the Ditch Lake problem is finding a balance between socialism and capitalism while maintaining and protecting the natural preservation of the lake.
• The changes of community residents pushed new directions and old boundaries. The means and level of desired comforts evolved and changed. Many members built year round homes.
Economic and finance issues
• All Co-Op members paid the same equal share for the lots but;
i. The lake front property value is much greater than non lake front.
ii. The lots are unequal sizes and unequal value.
• It seems only financial banks with a socialistic mandate such as the local Credit Union will grant loans for a cabin or a home or allow a mortgage at Ditch Lake. Canada’s major six banks, it would seem do not assess a Recreational Co-Op as economically viable as there is no individual beneficial ownership of land to which the homes are built.
Legal Issues
• As a Co-Op, liability is limited to the fees for members. But legal precedents have established directors can be found personally liable in the event of litigation.
• The province of Manitoba incorporated The South Ditch Lake Recreational Co-Op Ltd. in 1992 and registered its description as a recreational camping grounds and trailer park. The land was purchased from The Provincial Crown. Canadian Federal Law has a clause which stipulates The Crown (from all levels of government) maintains ownership of land extending a specified area from the lake shore (99 feet) . Housing was not the declared intent of the Recreational Co-Op. Therefore the Crown did not conduct a survey of the official water shores at the time of sale and so the rule remains in effect that no homes or permanent structures can be built within 99 feet from the lake shore.
• The South Riding Mountain Planning District is a federal branch of government. The Planning District was the first which granted members building permits for lake front cabin owners to build homes. Homes were granted permission to be built on un-surveyed Crown Land which was never zoned for housing- it is zoned for recreational camping and trailers.
• It is noteworthy to consider land and housing co-ops are no longer granted in Canada as they are troublesome and problematic to manage.
Social Issues
• ‘Co-operation’ is flailing.
Biophysical Issues
• The lake and surrounding habitat is monitored by a number of common interest groups and regulatory bodies, including Manitoba Fisheries, Little Saskatchewan River Watershed, and Ducks Unlimited. Correspondence from Manitoba Environmental Management reveals Ditch Lake was identified with an aquatic weed problem as early as 1987. A plan of action was recommended by the governmental agency to the Ditch Lake cottage owners. The plan to date has not been implemented.
• Government initiated Environmental Assessment Acts are recent legislations which are being introduced to protect natural habitats and lakes such as Ditch Lake across Canada. Canadian precedents have been set which hold the Board of Directors liable for not enforcing legislations to protect the Environmental Acts (as per legal issues). Insurance for such situations is limited.
Review of a Co-Op
The philosophy of a Co-Op is an important concept to consider for Ditch Lake. A recent era in prairie history honoured socialist political attitudes. After the Depression, political parties such as Social Credit and the Cooperative Common Wealth Federation (CCF) were popular in the Prairies. The parties’ philosophy was to redistribute the wealth of the community for working class groups. The agricultural industry in particular was a strong proponent of the socialist philosophy that swept the prairies in the 1930s, 40s, 50s. Co-Ops are a form of socialism. “They are based on ethical values and principles including self-help, democracy, equality, and concern for community.” Co-Ops are prevalent in the Prairie Provinces. The first co-operatives were creameries and grain growers' co-operatives, but gradually more types were added including retail stores, credit unions, a range of agricultural co-operatives, and community service co-operatives such as recreation halls and community health clinics.
Research and data are minimal regarding Recreational Co-Ops. There are 286 Recreational Co-Ops in Canada, most of which are in Saskatchewan. In Manitoba there are 31 Recreational Co-Ops. Between the years of 1921-2005 there were 45 recreational cooperatives incorporated in the province. 10 dissolved between 2000 and 2005. The Secretariat does not receive specific reasons for why cooperatives dissolve. The Federal Government has defined the Recreational Co-Op as the management of various activities, including the management of community centres, skating and curling rinks, golf courses, campgrounds and swimming pools.
Review of Manitoba rural land values projections
It is a struggle to find a balance of the socialistic co-op and capitalism when land value in rural Manitoba is currently financially lucrative. ‘If one were to visit rural Manitoba in the near future, one would be struck by the amount of growth in unexpected areas. Social scientists referred to these communities of growth as "rural tigers". Coming out of what was termed oblivion, these communities are poised for a rural transformation. Strong demand for lakefront property is very appealing when the cost of recreational property is soaring in lake areas. If these trends continue, they could very well signal a rural expansion not seen in 50 to 80 years.’
Conclusion
Identifying a balance of common goals and objectives of the most relevant issues amongst Co-Op members will assist unification of the community. A significant discovery will be identifying who will lose what with each alternative including ‘change’ or ‘staying the course’. Further research and discussion is recommended.
Author- Cori Doan
Bibliography
Bryksa, Tracey. "Cottage development popular with Albertans." Winnipeg Free Press, July 20, 2008: F14.
Canadian Co-operatve Association. Co-Ops in Manitoba. Canadian Co-operatve Association, circa 2004-2005.
Careless, J.M.S. Canada: A story of Challenge. Toronto: Macmillan of Canada, 1986.
Department of Justice Canada. Naviagable Waters Protection Act. July 12, 2008. (accessed 08 10, 2008).
Government of Canada. Co-operataives Secretariate. 05 06, 2008. (accessed 08 12, 2008).
Manitoba Waterstewardship. Manitoba Fisheries. Spring 2008. (accessed 08 12, 2008).
Province of Manitoba Canada. Manitoba Finance; Financial Institutions Regulation. (accessed 08 13, 2008).
Public Works and Government Services Canada. Real Property Valuation Guidlines Chapter 1C6 Water Lots. 01 24, 2008. (accessed 08 07, 2008).
Routledge, Les. "'Rural tigers' transforming Manitoba." Winnipeg Free Press, July 4, 2008: A11.
Saskatchewan Regional Economic and Co-operative Development. Co-Operative Business Structure. 02 11, 2008. (accessed 08 12, 2008).
South Ditch Lake Recreational Co-Op Ltd. "South Ditch Lake Recreational Co-Op Ltd." Charter of By-Laws Manual. South Ditch Lake Recreational Co-Op Ltd., 11 30, 1992.
The Co-Operatives Act. Manitoba Laws. 29 1998, June. (accessed 08 10, 2008).
I apologize that the blog post would not accommodate for footnotes from the original essay.
Please edit my final point in the legal section which notes housing co-ops are no longer 'granted'. Review of my legal text clarifies housing co-ops are not 'advised' in Canada because of problematic issues. Many thanks. Cori Doan
ReplyDeleteCorinne,
ReplyDeleteI'm am writing a feature article on the history of Ditch Lake for the South Mountain Press. Would you have anymore anecdotes or information on the area other than what is in your blog here? Thanks.
Blair Gilmore
blair.gilmore@hotmail.ca
204-841-8340