A Historical Perspective
Background

   ECONOMIC HISTORY
As with many communities in the Kootenay area, Revelstoke began in the late 1 880s as a transportation and supply centre for the mining industry. This was soon bolstered by the location of a major station and important maintenance yard for the new Canadian Pacific Railway at the beginning of its passage through the treacherous Selkirk, Purcell and Rocky Mountains. Both the mining industry and railway construction required substantial amounts of timber which prompted the early establishment and growth of the timber industry in the area.
Beginning in 1965, three hydroelectric dams which created large reservoirs were built in the area. While these mega-projects fortified the economy of the city, they also flooded vast expanses of prime forestlands, reducing the timber and natural environmental resources of the area.
When the mega-project boom ended in 1985, the town experienced a significant downturn. This downturn was admirably overcome through the development and implementation of a community economic development strategy which included a downtown revitalization project, development and diversification of small businesses, encouragement of tourism and strengthening of the timber industry. Today, the economy of the community is based on four primary components, each having almost equal importance: the timber industry, transportation (primarily rail), tourism and government.
  
   FOREST INDUSTRY DEVELOPMENT
The City of Revelstoke is the only major community within the Revelstoke Forest District, which stretches from the Mica dam in the north to Arrow Lake in the south. The forestlands in the District are almost equally divided between tree farm license (TFL) area and a timber supply area. As Figure 1 illustrates, the original tree farm license, TFL 23, which included approximately half a million hectares stretching from north of the Mica dam through the Revelstoke District and into the Arrow Forest District to the south, had been granted to Celgar Ltd. in 1955 primarily to supply a pulpmill and sawmill complex in Castlegar. Prior to 1986, the timber harvested from the timber supply area had historically been processed in Revelstoke by one large sawmill which was had been recently purchased by Federated Cooperatives, a Saskatchewan-based firm, and several smaller, locally-owned mills.

   1986 - A LOW POINT
In 1986, the major sawmill in the community was closed, adding to the already depressed economy following the end of the dam construction boom. A small amount of harvesting continued under the company’s cutting rights in the timber supply area, but these logs were trucked to processing facilities outside Revelstoke.

This left three small sawmills and a pole yard operating in the community, processing four per cent of the timber harvested from public lands in the area (28,000 of the total of 700,000 cubic metres harvested). This situation was not acceptable to the community.
  

   COMMUNITY ADVOCATES CHANGE
Between 1987 and 1990, the City of Revelstoke and community groups worked together to advocate the community’s view that more of the timber harvested from the area should be processed in the community:
  
in 1987, the Chamber of Commerce publicly supported the provincial government’s decision to downsize the northern block of TFL 23 because of inadequate harvesting levels. In the same year, the City of Revelstoke was successful in convincing the Ministry of Forests to cancel Federated Cooperative’s tenure due to lack of local processing. At the same time, the large sawmill in Revelstoke reopened under new ownership.
  
in 1988, the City became involved in the consultation process to award a new license. The City demanded the decision include an assessment of community, social and economic benefits. The City’s recommendation that community-based processors be provided cutting rights was followed by the Minister of Forests, and two local mills were awarded tenures:
  
  • Joe Kozek Sawmills Ltd. 21,000 cubic metres
  • Downie Timber Ltd. 159,000 cubic metres
      
during 1988 and 1989, the Management and Working Plans for TFL 23 were thoroughly reviewed by the City of Revelstoke and the Economic Development Commission. Experience gained by city staff during these reviews prompted the City to identify serious underlying problems with the management and utilization of the timber resources of the TFL. Submissions to the Forest Service and the Ministry of Forests resulted in substantial changes to the original plans.
 
during 1989 and 1990, the City and the Economic Development Commission worked together to submit briefs first to a panel conducting public hearings on converting forest licenses to TFLs, and then to the Forest Resources Commission. Both briefings highlighted the concerns about the management of TFL 23, and the alienation of cutting rights from community based processors. The City made the following recommendations to the Forest Resources Commission:
  
  • communities should have more input on management plans for licenses  
  • local processing would improve utilization and management  
  • improved forest management would increase benefits and reduce potential allowable annual cut reductions
  • improved utilization standards were required  
  • improved recreational and tourism use of the forest should be encouraged  
  • consistent application of the Forest Act was needed

In 1991, Westar Timber offered TFL 23 and its sawmill in Castlegar for sale. In March, 1992, sale of the portion south of Revelstoke, including the sawmill, to Pope and Talbot Ltd., a U.S. lumber firm, was negotiated. The government created a review panel including local provincial politicians to provide recommendations on the proposed transfer of harvesting rights.

Over 500 residents of Revelstoke attended a public meeting to give the review panel the strong message that local control of local resources was demanded; specifically that the area of forestland within Revelstoke Forest District should not be included in the sale because it was a critical source of supply for local mills. The provincial government agreed, and 35,000 cubic metres of timber from this area was allocated to the Small Business Forest Enterprise Program and is thus available to local processors. Cutting rights for the southern portion were transferred to Pope and Talbot Ltd. and Westar Timber retained the northern portion of the tree farm license which was renumbered TFL 55.

  
[Table of Contents] [Introduction] [Background
[Opportunity is Created] [From Opportunity to Reality
[First Two Years of Operations] [Current Challenges
[Further Information] [Appendix]

 

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