Kinbasket Reservoir Opportunities Study

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Kinbasket Reservoir Commercial and Recreation Opportunities Study Final Report

Prepared for Golden Area Initiatives

By

March 2009


TABLE OF CONTENTS

Executive Summary ....................................................................................................... i General Impact of the Reservoir .................................................................... i Comparisons with Other Reservoirs ............................................................. iii Potential Commercial and Recreation Opportunities ....................................iv Economic and Environmental Impacts .......................................................... v Conclusions and Recommendations............................................................ vii 1 – Introduction and Study Context ............................................................................. 1 Development of the Kinbasket Reservoir ...................................................... 1 General Impact of the Reservoir ................................................................... 2 Observations from Site Visits by Consultants ............................................... 4 Study Objectives and Process ...................................................................... 7 2 – Comparisons with Other Reservoirs ..................................................................... 8 Williston Lake Reservoir ............................................................................... 8 Seton Lake Reservoir ................................................................................. 11 Stave Lake and Haywood Lake Reservoirs ................................................ 12 Arrow Lakes Reservoir................................................................................ 14 Lake Revelstoke Reservoir ......................................................................... 15 Overall Comparisons with Kinbasket Reservoir .......................................... 16 3 – Potential Commercial and Recreation Opportunities ........................................ 18 Many Potential Outdoor Tourism-Recreation Opportunities........................ 18 Inadequate Public Access and Conditions of Reservoir Impose Significant Constraints ............................................................................................ 20 Priority Water-Based Outdoor Recreation Opportunities ............................ 20 Priority Shoreline and Adjacent Backcountry Opportunities ........................ 26 Built Infrastructure and Facilities Required to Realize Opportunities .......... 31 Opportunities in Other Sectors .................................................................... 43 Conclusions Regarding Commercial and Recreation Opportunities ........... 44 4 – Review of Economic and Environmental Impacts .............................................. 45 Community and Regional Economic Impacts ............................................. 45 Summary of Environmental Impacts ........................................................... 51 Remediation Efforts of BC Hydro ................................................................ 52


5 – Conclusions and Recommendations .................................................................. 54 Overall Magnitude of Negative Impacts on Region ..................................... 54 Limited Potential of Commercial and Recreation Opportunities .................. 55 Support Needed For Key Opportunities ...................................................... 56 Additional Opportunities for Mitigating Region’s Economic Losses ............ 57 Initial Implementation Steps ........................................................................ 58 Appendix A – List of Documents Reviewed ............................................................ A-1 Appendix B – List of Persons Contacted / Interviewed ......................................... B-1 Appendix C – Stakeholders Workshop ................................................................... C-1


EXECUTIVE SUMMARY

The Kinbasket Reservoir was created in 1973 with the completion of the Mica Dam (800 feet high). The dam was built for flood control and power generation and is a key project of the Columbia River Treaty. The resulting huge reservoir covers a 216 kilometre stretch of the Rocky Mountain trench, extending from northwest of Golden all the way to Valemount and encompassing a total of 529 square kilometres. This study examines the ongoing impacts of this huge Reservoir and the realistic potential for commercial and recreation opportunities to help offset the significant economic losses to the region caused by creating the Reservoir.

GENERAL IMPACT OF THE RESERVOIR Despite creating a large body of water that would seem to have great recreational potential, the dramatically fluctuating water levels significantly reduce any such potential as large areas of the Reservoir are empty when water levels are low, sometimes for months at a time (see Figure 1). Figure 1: Kinbasket Reservoir Monthly Water Level Fluctuations, 1976-2004

Source: BC Hydro

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Executive Summary

The photographs in Figure 2 show close-up views of the extremely unattractive mudflats that are prevalent when the water levels are low. Figure 2: Photographs of Kinbasket Reservoir at Low water

Source: Photos by Ron Oszust

In addition, there is considerable industrial waste at some locations like Bush Harbour. This ranges from rusted old tugboats to abandoned buildings to abandoned tanker trucks and other debris. Therefore, there are several major constraints on the recreational use and potential of the Kinbasket Reservoir including: ♦ Significant fluctuations in water levels ♦ Extensive debris throughout much of the Reservoir – in the water and along the shores ♦ Road access to shoreline areas is inadequate for recreational use ♦ Insufficient year-round maintenance of existing roads ♦ High winds on Reservoir reduces the potential for recreational boating and sport fishing activity ♦ Limited development of trails, compounded by the access problem ♦ Lack of suitable infrastructure to facilitate water-based recreational activities (e.g.- boat launches, docks). Creation of the Kinbasket Reservoir has had a number of other significant negative local impacts including the following: ♦ Reduction in forestry sector activity and its economic impacts on the region

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Executive Summary

♦ Elimination of previously existing and future north-south transportation routes ♦ Destruction of important local tourism and recreation resources along the original lakes and rivers ♦ Loss of land and resources for community and regional economic development ♦ Resulting reduced taxation base, with correspondingly reduced services and community infrastructure ♦ Significant negative environmental impacts including landscape degradation and the loss of riparian zones, wetlands and habitat, as well as significant losses of wildlife, waterfowl, and fish stocks. In spite of all these negative impacts, there appears to have been little effort on the part of BC Hydro and the Province to make the investments required to realize the limited commercial and recreational potential that does exist with the Reservoir. This is particularly evident when examining what has occurred with other reservoirs across the province.

COMPARISONS WITH OTHER RESERVOIRS The reservoirs that we examined as comparative cases for this study, based on available information, are: Arrow Lakes Reservoir; Williston Lake Reservoir; Seton Lake Reservoir; Stave Lake and Hayward Lake Reservoirs; Lake Revelstoke Reservoir. A summary of the comparisons is shown below in Figure 3. Figure 3: Comparison of Kinbasket with Other BC Reservoirs Comparative Characteristic

Kinbasket

Arrow Lakes

Williston Lake

Seton Lake

Stave Lake and Hayward Lake

Lake Revelstoke

Annual Water Level Fluctuations

up to 155 ft.

60-70 ft. max

40-55 ft.

1-2 ft.

6-20 ft.

3-5 ft.

Extent of Debris Problem

Severe

Low

Moderate

Low

Low

Low

Road Access Along Shoreline

Rough Forest Service Roads

Paved provincial highways and other roads

Provincial paved and gravel roads

Paved provincial highway (99)

Paved Roads plus Forest Service Roads

Paved highway (23) along entire east side

Publicly Developed Campgrounds & Recreation Areas

None

4 Provincial Parks plus several Recreation Areas and municipal parks

Alexander Mackenzie’s Landing (19 sites), Butler Ridge Provincial Park

Seton Dam campground (45 sites)

Stave Lake Reservoir Lodge and Campsite; 3 day use recreation areas

Martha Creek Provincial Park (25-site campground)

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Executive Summary

Comparative Characteristic

Kinbasket

Arrow Lakes

Williston Lake

Seton Lake

Stave Lake and Hayward Lake

Lake Revelstoke

High Quality Boat Launches and/or Docking Facilities

Some basic gravel boat launches, not well-maintained

At Provincial Parks and marinas, plus 8 Recreation Sites

Near Mackenzie, Hudson’s Hope, Butler Ridge

At Seton Beach

At Stave Lake and at Hayward Lake

At Provincial Park; 10 other boat launches along shoreline, near highway

Tourist Attractions Developed by BC Hydro and/or Province

None

Visitor Centre at W.A.C. Bennett Dam

Seton Viewpoint, Seton Beach, Fish Ladder, Picnic Areas

Stave Falls Visitors Centre plus extensive developed trails for hiking and mountain biking

Revelstoke Dam Visitors Centre

Permanent Recreational Real Estate Development

None

Torwood Estates development on Peace Reach

Private lakefront lots available

None

None

Near Nakusp – Halcyon Hot Springs Village and Spa; other developments planned

Source: Study team analysis

As indicated, the key points of comparison to the Kinbasket Reservoir are as follows: ♦ Annual water level fluctuations in all cases are substantially less than for the Kinbasket Reservoir and in some cases less than 1 metre, making these other reservoirs much better suited to year-round recreational use. ♦ Debris management is nowhere near as severe an issue as it is for the Kinbasket Reservoir. ♦ Virtually all of the other reservoirs have better road access along major portions of the shoreline, in some cases via provincially maintained paved highways. ♦ All of the other reservoirs have a much more significant and effective public investment in tourism-recreation facilities including interpretive centres, campgrounds, boat launches, trails, swimming beaches, etc. ♦ Water-based and shoreline recreational activities and opportunities are much more prolific for most of these other reservoirs. Some of the other reservoirs have successful recreational real estate developments along portions of the shoreline.

POTENTIAL COMMERCIAL AND RECREATION OPPORTUNITIES The majority of the opportunities considered are outdoor tourism and recreation activities and infrastructure facilities that would support these activities. We have subdivided these into three main categories as follows:

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Executive Summary

♦ Water-based outdoor recreation opportunities ♦ Shoreline and adjacent backcountry opportunities ♦ Built infrastructure and facilities. In Figure 4 we have presented a list of the range of the realistic potential opportunities in each of the three categories. Figure 4: Kinbasket Reservoir and Area Recreational Opportunities Category Water-Based Activities

Potential Opportunity Boating – motorized and sail Kayaking/canoeing in selected areas Sport fishing (summer) Possible summer tour boat operations (day tours)

Shoreline / Back-country

Hiking, backpacking and nature interpretation

Activities

Heritage tourism interpretation and expeditions Horseback trail riding Mountain biking ATVs / Motorized trail bikes Back-Country Skiing and Snowmobiling

Built Infrastructure

Access roads to Bush Harbour, Esplanade Bay and other areas Boat launch and docking facilities at Bush Harbour Public campground facilities at Bush Harbour Upgraded recreation site and boat launch at Esplanade Bay Other enhanced public recreation sites, campgrounds and boat launches Hiking and interpretive trails Possible roofed accommodation facilities where permitted Possible small-scale rural recreational real estate opportunities Possible weir development

Source: Study team analysis

In the full study report, each of these opportunities is described in more detail, along with the corresponding issues, limitations and constraints, plus the implementation requirements.

ECONOMIC AND ENVIRONMENTAL IMPACTS In Figure 5 we have summarized preliminary order of magnitude estimates of the overall economic losses that can be quantified.

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Executive Summary

Figure 5: Overall Economic Losses from Creation of the Kinbasket Reservoir Type of Impact

$ 1994

$ 2009

Annual Impacts Loss of timber potential Wildlife, waterfowl, fish stocks losses Loss of other tourism-recreation revenue Total

$3,380,000 $2,099,000 $480,770 $5,959,770

$7,030,400 $4,365,920 $1,000,000 $12,396,320

Capitalized Impacts Loss of timber potential Wildlife, waterfowl, fish stocks losses Loss of other tourism-recreation revenue Loss of Big Bend Highway Total

$48,290,000 $29,950,000 $6,860,590 $6,400,000 $91,500,590

$100,443,200 $62,478,029 $14,287,000 $13,305,100 $190,513,329

Source: Study team calculations based on data in the report: Golden and Area Mica Report 1994. A 5% annual inflation factor was used to derive the 2009 numbers.

This does not take into account the economic value of other significant losses initially incurred as a result of the flooding of the Reservoir including: ♦ Timber actually lost during the flooding ♦ Poorly utilized timber during the flooding ♦ Losses resulting from disrupted transportation network ♦ Loss of biodiversity (affects flora, fauna and tourism) ♦ Loss of connectivity between adjacent national parks (affects wildlife and tourism). The significant environmental impacts, which are over and above the economic impacts, include the following: ♦ A loss of riparian habitat ♦ Loss of wetlands and lakes ♦ Significant loss of forest cover of various types and ages (28,500 hectares) ♦ Significant loss of wildlife including black bear, moose, mountain goats, caribou, deer, elk and many other species ♦ Loss of migrant and resident waterfowl population ♦ Significant loss of fish stocks. In addition to these significant impacts on the natural environment, the overall landscape has been dramatically altered. During the months when water

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Executive Summary

levels are low, quite an unsightly mud flats with numerous tree stumps is the result – clearly a very inhospitable looking natural environment.

CONCLUSIONS AND RECOMMENDATIONS The potential impacts of tourism-recreation development will only partially offset the significant economic losses that have been identified. ♦ Annual economic losses as a result of Kinbasket Reservoir are estimated at $12.4 million. ♦ If the priority opportunities identified in this study are fully developed, the potential annual economic impacts could be up to $4 million. ♦ Grants-in-lieu of taxes to Golden and Area A that are related to the Kinbasket Reservoir amount to little more than $200,000 annually. ♦ Therefore, the ongoing annual economic losses still exceed the existing and potential offsetting benefits by more than $8 million annually. ♦ Therefore, other means of acquiring offsetting benefits should also be pursued. To realize the key recreation opportunities identified in this study significant public sector investments are required in the following types of initiatives: ♦ Considerable additional debris clean-up – while this is ongoing, much more is required ♦ Enhanced access roads to and along the shoreline, where appropriate, and improved road maintenance ♦ Stump removal is still a high priority, especially in the areas best suited to recreational use ♦ Further re-vegetation efforts are required along the shoreline ♦ Permanent boat launches and related marine facilities must be built ♦ Additional trails development ♦ Upgrading of Provincial Recreation Sites and Campgrounds ♦ Investment in new campground facilities (e.g.- Bush Harbour) Several steps need to be followed to initiate implementation and create momentum: 1. Ensure that BC Hydro follows-through on starting construction of the boat launch at Bush Harbour in the spring of 2009.

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Executive Summary

2. Work with BC Hydro, Ministry of Forests and Ministry of Transportation to secure funds for access roads upgrading and maintenance. 3. Secure partners (e.g.- BC Hydro, Regional District, Ministry of Tourism, Sport and the Arts) and access funding for campground and day use area development at Bush Harbour. 4. Work with the Regional District and other partners to develop/upgrade other parks and recreation areas in close proximity to Kinbasket reservoir. 5. Liaise with GBRAC and private sector operators regarding the various possible commercial tourism-recreation opportunities. The critical next step to initiate the implementation process is the formation of an Implementation Committee, to move forward on the various issues and recommendations outlined in this study.

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1 – INTRODUCTION AND STUDY CONTEXT

This study addresses the potential for commercial and recreation opportunities on and around the Kinbasket Reservoir as a means of partially compensating for the substantial initial and ongoing economic losses the region has incurred as a result of creation of the Reservoir. In its current state the Reservoir offers little tourism and recreation potential, as access to the Reservoir is severely limited and there has been little investment in any recreational infrastructure.

DEVELOPMENT OF THE KINBASKET RESERVOIR The Kinbasket Reservoir is the second largest water reservoir entirely in BC (Williston Lake is the largest) and was created in 1973 with the completion of the Mica Dam, considered to be North America’s highest earthfill embankment dam (800 feet high). The dam was built for flood control and power generation and is a key project of the Columbia River Treaty. The resulting huge reservoir covers a 216 kilometre stretch of the Rocky Mountain trench, extending from northwest of Golden all the way to Valemount and encompassing a total of 529 square kilometres (see Figure 1.1, below). Figure 1.1: Kinbasket Reservoir Location Map

Source: Columbia Shuswap Regional District

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

A large section of the Reservoir is within Electoral Area A of the Columbia Shuswap Regional District and is the focus of the current study. It is clearly a critical component of the region’s biophysical resources and has potential for expanded commercial and recreation uses.

GENERAL IMPACT OF THE RESERVOIR Despite creating a large body of water that would seem to have great recreational potential, the dramatically fluctuating water levels significantly reduce any such potential as large areas of the Reservoir are empty when water levels are low, sometimes for months at a time, as shown in Figure 1.2. Figure 1.2: Minimum, Maximum and Mean Monthly Water Level Fluctuations on the Kinbasket Reservoir, 1976-2004

Source: BC Hydro

BC Hydro has little operational flexibility to change this pattern as it would affect downstream flood control capabilities. An aerial view of the resulting mud flats is shown in this photograph (taken by Tim Grey). Additional photographs in Figure 1.3, show close-up views of the

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

extremely unattractive mudflats that are prevalent when the water levels are low. These pictures were taken in the Esplanade Bay area. Figure 1.3: Photographs of Kinbasket Reservoir at Low water

Source: Photos by Ron Oszust

In addition, there is considerable industrial waste at some locations like Bush Harbour, which has never been cleaned-up by BC Hydro and/or the Province. This ranges from rusted old tugboats to abandoned buildings, abandoned tanker trucks, and other debris. Examples are shown in Figure 1.4. Figure 1.4: Photographs of Industrial Waste at Bush Harbour

Source: Photos by John Murray (October 2008)

The wood debris problem is also extensive, both along the shore and on the water itself. BC Hydro has funded significant clean-up efforts recently, but it will take much more to reduce the debris accumulations to acceptable levels. The debris is very unsightly and extremely hazardous to boaters (see figure 1.4).

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Figure 1.4: Photographs of Shoreline Debris Accumulation

Source: Photos by John Murray (October 2008)

In addition to the preceding problems, creation of the Reservoir in the first place resulted in significant economic and environmental losses for the region that have never been adequately compensated for.

OBSERVATIONS FROM SITE VISITS BY CONSULTANTS On October 22, 2008, key members of the consulting team travelled with officials of Golden Area Initiatives to several locations along the Kinbasket Reservoir in order to have a first-hand appreciation of the commercial and recreational potential. The following paragraphs and photographs (taken by John Murray, leader of the consulting team) provide a brief summary of our findings on that excursion.

Access Road to Bush Harbour This is a gravel road that has been maintained by Louisiana Pacific Forestry Operations during the spring, summer and fall and Chatter Creek Lodge has a road use permit to use and maintain it during the winter months (mainly snowploughing). It is essentially a fairly good gravel road throughout most of its length, although not that appealing to local residents or tourists who are not in trucks or 4-wheel drive vehicles. In order to be appealing for wide-ranging tourism and recreation access, the road would need to be significantly upgraded at minimum with additional gravel and grading throughout, plus widening in some areas. It is likely that chip-seal or pavement would be needed to make the Bush Harbour area a real tourism and recreational asset for the region. Other observations regarding the access road include:

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Virtually no signage and certainly no signage advising of any recreational opportunities or even the existence of Kinbasket Lake Reservoir. ♦ Various rough spots, tight corners and narrow stretches that would not meet provincial road standards and offer only minimal safety and comfort. ♦ Inadequate numbers of pull-offs, turnaround spots, and scenic lookouts for effective use as a tourism asset.

Bush Harbour We drove as far as Bush Harbour on the Forest Service Road and then walked fairly extensively around that area for about an hour to have a close look at its existing state and what would be required to enhance it for broader-based recreational use. Our observations include the following: ♦ The water level was fairly high, resulting in large expanses of lake and demonstrating the dramatic scenic appeal of the reservoir at high water. The Lake with the backdrop of snow-capped mountains creates a spectacular setting for recreational activity. ♦ Along the shoreline, however, there was significant evidence of much wood debris virtually everywhere, detracting from the shoreline ambience and appeal to tourists and local recreationists (as shown earlier in Figure 1.4). A gravel causeway joins a small island with a private camp, located to enjoy the spectacular setting. ♦ There was much evidence of considerable industrial waste and garbage of one sort or another throughout the Bush Harbour area including rusted and abandoned tugboats, abandoned industrial buildings, empty fuel/propane storage tanks, and even an abandoned fuel tanker truck. ♦ There appears to be a certain amount of squatting at least in terms of seasonal use with various trailers that appear to be permanently positioned along the shore, as well as some cottages (although some or all of these may be on leased land). ♦ “Rock Cut” viewpoint. We travelled a little further along the

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

road to the rock cut and the viewpoint looking east over Bush Arm up to the Columbia Icefields. Subsequent to our visit we understand that this section of the road has been closed as a result of safety concerns. Assuming it is repaired, this location would make an ideal tourist-oriented scenic viewpoint over the reservoir, perhaps even a location for a small interpretive exhibit/sign about the Reservoir.

Esplanade Bay Recreation Area We stopped at the recreation area which includes picnic tables and outhouse facilities, in a beautiful scenic location overlooking the Reservoir. There is also a small gravel boat launch near the picnic area. This makes an ideal recreation site and would be well-suited for further upgrading and enhancement, as has been proposed in the Regional District’s Parks Plan. When the water levels are high this makes a stunningly scenic location for a picnic and day-use area.

Esplanade Bay Cottage Society We drove into the grounds of this cluster of cottages located adjacent to Esplanade Bay on leased land. These are generally fairly rustic and modest facilities, ideal as wilderness recreation getaways for residents of the region. This appears to be an excellent use for areas of the shoreline that are already accessible by road. The wilderness cabins, which have no electricity and sewage systems, appear to be much less intrusive on the natural environment than the high-end resort recreational residential developments located in areas such as the Okanagan.

Kinbasket Lake Resort We drove back to the main highway and then drove north on the highway to the access to Kinbasket Lake Resort, which is on the Columbia Reach. This resort offers wilderness camping and cabin facilities on the shore of the Reservoir. The original main lodge building is currently being used as the owner’s personal lakeside residence, although would have potential as a small B&B/lodge (has been used as such in the past). With water levels high the setting is very picturesque and scenic (need a water elevation of at least 2,325 ft.. The grounds are partially landscaped with lots of picnic tables, attractively situated shoreline cabins, a small gravel boat launch, and dock facilities. The owner is intending to undertake further upgrading to

Introduction and Study Context

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

the shoreline and dock facilities. The resort attracts campers and anglers during the summer and early fall. The primary disadvantage of the location of the resort is its close proximity to the mainline railway track. There are apparently numerous trains each day and at night travelling along this section of rail, although none did while we were there.

Overall Conclusion Regarding Site Visits In conclusion, it was clearly apparent that the sites we visited and the areas we travelled through have considerable incremental tourism and recreational potential, provided significant investments are made in enhancing the road access and signage. In addition, investments would need to be made in upgrading day-use and camping facilities at appropriate sites such as Esplanade Bay and Bush Harbour. This tourism/recreational potential is best realized during periods when the water level is high.

STUDY OBJECTIVES AND PROCESS The overall purpose of the current consulting project is to identify the range of potential added value uses that could be sourced from or linked to the portion of the Kinbasket Reservoir within Area A. The principal project objectives include the following: 1. To undertake a literature review of relevant studies, reports and planning documents that may be helpful for assessing the added value commercial and recreation potential associated with the Kinbasket Reservoir. 2. To undertake a benchmark review of potentially similar water storage reservoirs with adapted usage protocols for commercial and recreational opportunities. 3. To visit to key sites along the Kinbasket Reservoir (via Golden access) to determine accessibility and infrastructure development issues. 4. To undertake appropriate consultations with stakeholders regarding the incremental commercial and recreation potential associated with the Reservoir. 5. To prepare a study Final Report document that encompasses all of the findings, conclusions and recommendations with regard to added value commercial and recreation potential, as well as the associated constraints and limitations. The following chapters of this document report on the findings, conclusions and recommendations of this study.

Introduction and Study Context

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2 – COMPARISONS WITH OTHER RESERVOIRS

We have been investigating the comparative context for other reservoirs within BC in order to better understand the following: ♦ The variations in water levels from month to month in comparable reservoirs, as well as BC Hydro’s ability to accommodate local community and/or businesses’ needs with regard to limiting water level fluctuations during certain time periods ♦ Investments made by BC Hydro in tourism and recreation related facilities and infrastructure such as campgrounds, day-use recreation areas, visitor/interpretive centres, boat launches, beaches and trails. ♦ Investments made by BC Hydro and/or the Province in relation to providing road access along the shoreline of the reservoirs. The reservoirs that we examined as comparative cases for this study, based on available information, are: ♦ Arrow Lakes Reservoir ♦ Williston Lake Reservoir ♦ Seton Lake Reservoir ♦ Stave Lake and Hayward Lake Reservoirs ♦ Lake Revelstoke Reservoir. On the following pages each of these reservoirs is reviewed in terms of the water levels and debris management, investments in access and tourismrecreation facilities, and the extent of impacts versus benefits. As these reservoirs were developed at different points in time in various parts of the province, the information available varies by reservoir.

WILLISTON LAKE RESERVOIR This reservoir is the largest lake in British Columbia and is located in Northern BC. It was created by the building of the W.A.C. Bennett Dam on the Peace River, west of Hudson’s Hope. It covers a vast section of the Rocky Mountain Trench, extending 200 kilometres northwest from the Mackenzie area to the remote Muskwa-Kechika Wilderness Area, along the Parson and Finlay Reaches. These join to meet the Peace Reach which extends 100 kilometres east to the WAC Bennett Dam near Hudson’s Hope.

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Water Level Fluctuations and Debris Management The Williston Lake Reservoir water license is for a low of 2106.8 ft. in elevation to a maximum of 2205 ft. Typically this reservoir is operated between elevations of 2150 ft. and 2205 ft. with overall water level fluctuations of 40-55 ft., depending upon yearly inflows and system needs. Approximately 50% of the inflows are from the melting of snow pack and the remainder from spring and summer rainfall. Figure 2.1: Williston Lake reservoir Historical Water Level Elevations

Source: BC Hydro

Debris management is not as big an issue as it is for Kinbasket Reservoir, although there is an effort to manage debris resulting from the operation of the Williston Lake Reservoir, primarily as a result of shoreline erosion. Some other sources, such as forestry practices, also contribute to the accumulation of debris. Therefore, localized debris management is undertaken in connection with implementing the various management plans for the Reservoir. Debris management itself is not included as a separate management plan, but is a requirement within various implementation projects. The overall effectiveness of debris management is monitored.

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Investments in Access and Tourism-Recreation Facilities There is some road access along the shores of the Reservoir, including paved and gravel road access on the east side of the main reservoir extending well north of Mackenzie to the Parsnip Reach and Finlay Forks, via the Parsnip West Forest Service Road on the east side of the reservoir. Road access from Mackenzie Access to the west side of the Parsnip Reach is via the Finlay Forest Service Road. Road access to the Peace Reach is via Hudson’s Hope and the WAC Bennett Dam and then a gravel road along a section of the north shore of Peace Reach (west of Hudson’s Hope), extending as far as Torwood Lodge. This is a privately-owned high-end wilderness adventure lodge, featuring a wide range of outdoor activities including fishing, hunting, hiking, and boating in the summer, as well as getaways and heli-skiing in the winter. Adjacent to the Lodge a wilderness recreation real estate development has been initiated with more than 80 lots for sale in the first two phases of development (the majority were sold prior to the current economic downturn), and a planned third phase with an additional 200 lots. There are two significant BC Hydro tourism-recreation developments: ♦ Alexander Mackenzie’s Landing. This is a multi-use recreational area situated on the shore of the Williston Lake Reservoir near the town of Mackenzie. It provides opportunities for a number of recreational activities including camping, picnicking, hiking, motor boating, fishing, canoeing and swimming. Facilities located at the site include the following: •

19-unit campground

Day-use picnic area (10 picnic tables)

Pedestrian trails

Sandy beach

Boat launch

Firewood corral

Event seating area

Four pit toilets

Grassed open space

Display signs and shelters.

♦ WAC Bennett Dam Visitors Centre. This centre overlooks the Williston Lake Reservoir near the Dam and offers interpretive exhibits, an audiovisual theatre, and a small café. It is open from mid-May to early

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

September from 10am to 6pm daily. There are also indoor washroom facilities and plenty of parking. While the Centre is a local tourism and recreational asset, it clearly has an important role in corporate public relations and community relations for BC Hydro.

SETON LAKE RESERVOIR This Reservoir is located on Highway 99 north of Pemberton and approximately 5 km southwest of Lillooet. The Seton Dam is the final dam of the Bridge River Hydroelectric development and came into service in 1956.

Water Level Fluctuations and Debris Management Water level fluctuations in the Seton Lake Reservoir are not a significant issue as the levels have a very narrow operating range between the elevations of 235.96 and 236.33 metres, a fluctuation of only about 1 foot. Debris management also does not appear to be an issue.

Investments in Access and Tourism-Recreation Facilities The Duffy Lake Road, which is now part of provincial Highway 99, provides excellent access along the shoreline. The Lake, with its very stable water levels turquoise green colour and spectacular mountain backdrop, is ideal for tourism-recreation. There are a number of recreational amenities that have been developed to cater to local recreation users and tourists including: ♦ Seton Beach. This is a day-use area that offers a fine sandy beach and shoreline access for picnicking, boating, canoeing, hiking, swimming and fishing. It is a very attractive recreation area, which also has washrooms and change rooms available. ♦ Seton viewpoint. This is a spectacular viewpoint overlooking the lake with its turquoise waters and snow-capped mountains in the background. It is in the area of a local First Nation archaeological site and there is a small self-guided interpretive trail providing information about the history of the Lillooet area and some of its modern day features. ♦ Seton Dam Fish Ladder. This is to facilitate chinook, coho and steelhead salmon which are found in the Seton River. The fish need to pass the Seton Generating Station to their spawning grounds. In addition to a role in fisheries enhancement, the fish ladder is a point of interest for visitors. ♦ Seton Dam Campground. This campground offers 45 campsites, hiking trails, firewood, drinking water and a pay phone. Each site has picnic

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

tables and a fire ring and everything is maintained in a fairly natural rustic state. ♦ Naxwit Picnic Area. This is located 3 km west of Lillooet, fairly close to the Seton Dam campsite. It is a day-use area with 14 picnic tables, washrooms, drinking water and interpretive signs relating some of the history and ecology of the area. Plenty of parking is available for cars, RVs and even tour buses. These facilities are either directly on Highway 99, or have excellent access to it via paved or gravel access roads. They have been developed and upgraded over a long time period and in total represent millions of dollars in capital investment. According to BC Hydro, during 2006, 2007 and 2008 alone, the annual expenditures for two of these components were in the following range: ♦ Seton Dam Campground: $60,000-$77,000 ♦ Seton Beach: $32,000-$35,000.

STAVE LAKE AND HAYWOOD LAKE RESERVOIRS These two reservoirs are part of the Stave River system and are located in the north-central Fraser Valley between Maple Ridge and Mission, approximately 60 km east of Vancouver.

Water Level Fluctuations and Debris Management Local recreational stakeholders at Stave Lake Reservoir define the recreational season as extending from Victoria Day to Labour Day. From May 15 to September 7, the preferred elevation of Stave Lake Reservoir for recreational activities is between 80.0 and 81.5 m. During this period, the level of Stave Lake Reservoir is targeted at 76 metres or higher, and is targeted at between 80.0 and 81.5 metres for a minimum of 53 days. Therefore, the overall water level fluctuation during the prime tourismrecreation season is in the range of 5.5 metres or less, so tourism-recreation activities are relatively unaffected. At Hayward Lake Reservoir during the spring (February 15 to May 15) and the fall (October 15 to November 30), the normal minimum operating level is 39.5 metres. At other times, the normal minimum operating level at Hayward Lake Reservoir is 41.08 metres. Therefore, water level fluctuations are very slight, typically less than 2 metres. The reservoir may occasionally be drawn down to 33 metres for maintenance of facilities, archaeological access, or other unusual circumstances.

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Debris management does not appear to be a major issue. The ongoing management issues are primarily concerned with fisheries productivity and water quality (turbidity is an issue for local residents drawing drinking water from the Reservoir).

Investments in Access and Tourism-Recreation Facilities Some significant recreation sites and facilities have been developed at these reservoirs, as described in the following paragraphs: ♦ Stave Lake Reservoir Recreation Area. Boating, picnicking, fishing, camping and hiking are the principal activities offered at this reservoir. Specific facilities include the following: ♦ Boat launch with concrete ramp to low water and floating docks ♦ Beach and picnic area ♦ Six-unit campground and lodge facility (Stave Lake Reservoir Lodge and Campsite). ♦ Stave Lake Reservoir Lodge and Campsite. This consists of a heated lodge building with hot and cold running water, two dormitory-style sleeping areas and a small supervisor’s bedroom. This building can accommodate up to 50 persons overnight and has two separate bathrooms with flush toilets, sinks and showers, as well as a dining room, common area and kitchen facilities. It is available for use by registered non-profit youth groups. Adjacent to the Lodge is a campsite with six satellite gravel tent pads and a large cooking shelter. There are two pit toilets located nearby and the capacity of the camping area is 40 persons. ♦ Stave River - Ruskin Picnic Site. This recreation area includes a beach and picnic area, hiking trail access, information displays, and a fish spawning channel complete with viewing bridge. It is ideal for swimming, boating, fishing and hiking. ♦ Haywood Lake Reservoir Recreation Area. Activities available here include boating, swimming, fishing, picnics, hiking and mountain biking. This recreation area includes a number of amenities as follows: •

Open grass play areas

Gazebo picnic shelter

Car-top boat access ramp to high water

90-metre long developed beach

Washroom facility complete with change rooms and beach shower

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Hiking and mountain biking trails

Information displays

Drinking water.

♦ Stave Falls Visitors Centre. This is located at the powerhouse at Stave Falls and includes interactive games and historic displays that explain the story of hydro power in British Columbia. It is possible to take self-guided tours through the facility and staff are available to answer questions. There is a 50-seat theatre, Powerhouse Gift Shop, full wheelchair accessibility and close proximity to BC Hydro’s recreation sites. ♦ Trails around Haywood Lake Reservoir. There is the 10km Reservoir Trail that connects with the 6 km Railway Trail, providing a 16 km walk around the Haywood Lake Reservoir. The Railway Trail on the west side of the reservoir accommodates both hiking and mountain biking (nonmotorized), while the Reservoir Trail on the east side is restricted to hiking.

ARROW LAKES RESERVOIR This 230 km long reservoir was formed when the original Arrow Lakes and Columbia River were restrained behind the Hugh Keenleyside Dam. This Dam is located 80 km west of Castlegar.

Water Level Fluctuations and Debris Management The Arrow Lakes appear to be much better suited for water-based and shoreline recreational uses than the Kinbasket Reservoir, primarily because annual water level fluctuations are generally no more than 20 metres (max. elevation of 440.7 metres or 1446 ft.; min. elevation of 420 metres or 1377.9 ft.), significantly less than that which occurs at the Kinbasket Reservoir. As a result, the lakes are ideal for all kinds of boating and water sports activities. While there is some debris in the lakes, it is not nearly the significant hazard that it is in the Kinbasket Reservoir. BC Hydro does not allow debris to pass through its dams, although there is always some potential for floating debris, submerged debris and shoals, depending on the water levels in the Arrow Lakes. A woody debris management plan has been recommended for the Arrow Lakes Reservoir to enhance the quality of recreation on the reservoir and improve navigational safety. This plan covers new debris that enters the system from tributaries or is taken off the reservoir banks during high water.

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Investments in Access and Tourism-Recreation Facilities The Hugh Keenleyside Dam Navigational Lock was developed by BC Hydro to allow passage of all properly equipped water craft, both recreational and commercial. While there are no recreational areas specifically operated by BC Hydro, there are a significant number managed by BC Parks, the Ministry of Forests and local municipal governments. These include: Syringa Creek Provincial Park, Blanket Creek Provincial Park, McDonald Creek Provincial Park, Shelter Bay Provincial Park, Edgewood Park, Fauquier Park, Burton Historical Park, Taite Creek Recreation Site, Octopus Creek Recreation Site, Sunshine Bay Recreation Site, Bowman Point Recreation Site, Begbie Falls Recreation Site, Akolkolex Falls Recreation Site, Eagle Bay Recreation Site, and Nakusp Recreation Area. Blanket Creek Provincial Park was developed originally by BC Hydro and is now a Class A Provincial Park with 63 vehicle accessible campsites, an extensive day use area with 32 picnic tables and parking for 120 cars, along with washrooms and other facilities/amenities. Boat launches are available at several locations including some provincial parks and commercial marinas. Many millions of dollars have been invested over the years in recreational infrastructure by BC Hydro and the province.

LAKE REVELSTOKE RESERVOIR Revelstoke Dam resulted in the creation of Revelstoke Reservoir, which is 130 km long and is licensed to store 1.5 million acre-feet of water. It extends northwest from the City of Revelstoke to the Mica Creek Dam that holds back the Kinbasket Reservoir.

Water Level Fluctuations and Debris Management The reservoir is normally kept within 1.5 metres of the maximum elevation throughout the year to maximize power generation and maintain a small buffer for operational flexibility. This level is maintained by regulating output at the Mica Dam and Revelstoke Dam so that the two facilities are operated in balance. The Revelstoke Reservoir is rarely below 571.5 metres or 1,875 ft. in elevation. The water License allows for a maximum elevation of 573 metres or 1,880 ft. and a minimum elevation of 554.5 metres or 1819 ft. Therefore, fluctuations in water levels are not an issue compared with the Kinbasket Reservoir. Debris management is not identified as a major issue the way it is for the Kinbasket reservoir and to a lesser extent for the Arrow Lakes Reservoir.

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Investments in Access and Tourism-Recreation Facilities This Reservoir, which is below the Mica Dam, is substantially better than Kinbasket Reservoir, from a recreational opportunities point of view, for the following reasons: ♦ Significantly less water level fluctuations and less debris ♦ Paved road access along the entire eastern side of the Reservoir ♦ Some excellent recreation areas, such as Martha Creek Provincial Park, which was developed originally by BC Hydro. It is right on the shore of the Reservoir with 25 paved campsites, concrete boat launch with wharf, swimming beach, playground, picnic area and other amenities; plus 10 other boat launches along east side of Reservoir ♦ Revelstoke Dam Visitor Centre with interactive displays and showcase exhibits, open daily from the end of May to mid-October.

OVERALL COMPARISONS WITH KINBASKET RESERVOIR Overall points of comparison between Kinbasket and the other Reservoirs is shown below in Figure 2.2. Figure 2.2: Comparison of Kinbasket with Other BC Reservoirs Comparative Characteristic

Kinbasket

Arrow Lakes

Williston Lake

Seton Lake

Stave Lake and Hayward Lake

Lake Revelstoke

Annual Water Level Fluctuations

up to 155 ft.

60-70 ft. max

40-55 ft.

1-2 ft.

6-20 ft.

3-5 ft.

Extent of Debris Problem

Severe

Low

Moderate

Low

Low

Low

Road Access Along Shoreline

Rough Forest Service Roads

Paved provincial highways and other roads

Provincial paved and gravel roads

Paved provincial highway (99)

Paved Roads plus Forest Service Roads

Paved highway (23) along entire east side

Publicly Developed Campgrounds & Recreation Areas

None

4 Provincial Parks plus several Recreation Areas and municipal parks

Alexander Mackenzie’s Landing (19 sites), Butler Ridge Provincial Park

Seton Dam campground (45 sites)

Stave Lake Reservoir Lodge and Campsite; 3 day use recreation areas

Martha Creek Provincial Park (25-site campground)

High Quality Boat Launches and/or Docking Facilities

Some basic gravel boat launches, not well-maintained

At Provincial Parks and marinas, plus 8 Recreation Sites

Near Mackenzie, Hudson’s Hope, Butler Ridge

At Seton Beach

At Stave Lake and at Hayward Lake

At Provincial Park; 10 other boat launches along shoreline, near highway

Tourist Attractions Developed by BC Hydro and/or Province

None

Visitor Centre at W.A.C. Bennett Dam

Seton Viewpoint, Seton Beach, Fish Ladder, Picnic Areas

Stave Falls Visitors Centre plus extensive developed trails for hiking and mountain biking

Revelstoke Dam Visitors Centre

Comparisons with Other Reservoirs

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Comparative Characteristic Permanent Recreational Real Estate Development

Kinbasket None

Arrow Lakes

Williston Lake

Near Nakusp – Halcyon Hot Springs Village and Spa; other developments planned

Torwood Estates development on Peace Reach

Seton Lake Private lakefront lots available

Stave Lake and Hayward Lake None

Lake Revelstoke None

Source: Study team analysis

As indicated, the key points of comparison to the Kinbasket Reservoir are as follows: ♦ Annual water level fluctuations in all cases are substantially less than for the Kinbasket Reservoir and in some cases less than 1 metre, making these other reservoirs much better suited to year-round recreational use. ♦ Debris management is nowhere near as severe an issue as it is for the Kinbasket Reservoir. ♦ Virtually all of the other reservoirs have better road access along major portions of the shoreline, in some cases via provincially maintained paved highways. ♦ All of the other reservoirs have a much more significant and effective public investment in tourism-recreation facilities including interpretive centres, campgrounds, boat launches, trails, swimming beaches, etc. ♦ Water-based and shoreline recreational activities and opportunities are much more prolific for most of these other reservoirs. ♦ Some of the other reservoirs have successful recreational real estate developments along portions of the shoreline.

Comparisons with Other Reservoirs

17


3 – POTENTIAL COMMERCIAL AND RECREATION OPPORTUNITIES

There are many existing and potential commercial and recreation opportunities associated with the Kinbasket Reservoir and immediately surrounding region. In the course of the research, analysis and consultation of this study, we have identified a full range of possibilities. In this chapter of the report we have indicated the significant constraints and limitations associated with commercial and recreational opportunities and then discussed in more detail the priority opportunities that should be pursued during the coming years.

MANY POTENTIAL OUTDOOR TOURISM-RECREATION OPPORTUNITIES The majority of the opportunities considered are outdoor tourism and recreation activities and infrastructure facilities that would support these activities. We have subdivided these into three main categories as follows: ♦ Water-based outdoor recreation opportunities ♦ Shoreline and adjacent backcountry opportunities ♦ Built infrastructure and facilities. In Figure 3.1 we have presented a list of the range of realistic possible opportunities in each of the three categories. Figure 3.1: Kinbasket Reservoir and Area Recreational Opportunities

Category Water-Based Activities

Shoreline / Back-country Activities

Potential Commercial and Recreation Opportunities

Possible Opportunity

Potential Viability / Utilization

Boating – motorized and sail

High if infrastructure provided

Kayaking/canoeing in selected areas

High if significant debris clean-up

Sport fishing (summer)

High if Reservoir well-stocked with appropriate species

Ice fishing (winter)

Low or nil because of unsupported ice in Reservoir

Possible summer tour boat operations (day tours)

Moderate to high if the right entrepreneur takes this on

Hiking, backpacking and nature interpretation

High if trailheads and trails enhanced, new trails developed

Heritage tourism interpretation

High, if historic trails and sites

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Category

Possible Opportunity and expeditions

Built Infrastructure

Potential Viability / Utilization can be accessed and interpreted

Horseback trail riding

High using existing trails and Forest Service Roads

Mountain biking

High if selected non-motorized trails designated for this

ATVs / Motorized trail bikes

High if selected Forest Service Roads designated for this

Back-Country Skiing and Snowmobiling

Moderate to high in carefully selected areas

Access roads to Bush Harbour, High if funding can be sourced for Esplanade Bay and other areas upgrading and ongoing maintenance Boat launch and docking facilities at Bush Harbour

High if funding can be sourced for development and maintenance

Public campground facilities at Bush Harbour

High if funding can be sourced for development and operations

Upgraded recreation site and boat launch at Esplanade Bay

High if funding can be sourced for development and maintenance

Other enhanced public recreation sites, campgrounds and boat launches

High if funding can be sourced for development and operations

Hiking and interpretive trails

High if funding can be sourced for development and maintenance

Possible roofed accommodation Moderate to high for a few more facilities where permitted small back-country lodges Possible large-scale waterfront resort development

Low or nil, because of unsuitable locations, shoreline, lack of access

Possible small-scale rural recreational real estate opportunities

Moderate to high for cottages/ cabins at a few selected locations, where permitted under GBRAP

Possible large-scale recreational real estate developments (like Okanagan)

Likely nil, because of unsuitable locations, shoreline, lack of access, and lack of market in this region

Possible weir development

High, if development and operational funding can be accessed, stakeholder support obtained and environmental requirements met

Source: Study team analysis

Those opportunities above that are shown as having “moderate to high” or “high” potential viability and/or utilization have been included as priority opportunities in the subsequent analysis of this chapter.

Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

INADEQUATE PUBLIC ACCESS AND CONDITIONS OF RESERVOIR IMPOSE SIGNIFICANT CONSTRAINTS If there were stable water levels, good boat launches and no debris, there would be a significant economic benefit to the Golden area of this Reservoir – local businesses would sell all kinds of products to recreational lake users (everything from jet skis, to supplies, outdoor gear and food). The potential success of any of the tourism-recreation opportunities shown in Figure 4.1 is affected by a series of constraints and limitations associated with the Kinbasket Reservoir. These are as follows: ♦ Road access to shoreline areas is inadequate for recreational use – the current roads are really only suitable for trucks and 4-wheel drive vehicles. ♦ There is insufficient year-round maintenance of the existing roads ♦ Significant fluctuations in water levels mean that major portions of the Reservoir are essentially empty for at least three months of the year, primarily during the spring and early summer. ♦ There is extensive debris throughout much of the Reservoir – in the water and along the shores – which is hazardous for boating and detracts from the appeal of water or shoreline oriented recreational activities. ♦ High winds on the Reservoir reduce the potential for recreational boating and sport fishing activity. ♦ The lack of suitable infrastructure to facilitate water-based recreational activities (e.g.- boat launches, docks) discourages many potential users and makes it difficult for current users. ♦ While various initiatives have been undertaken to stock the Reservoir with various species of fish, the results so far have not enabled sustainable sport fishing. ♦ There is only limited development of recreational trails, which is compounded by the access problem.

PRIORITY WATER-BASED OUTDOOR RECREATION OPPORTUNITIES Based on the research, analysis and consultation of this study there appear to be four priority water-based outdoor recreation opportunities that, with the appropriate investment in supporting infrastructure, have good potential for success on the Kinbasket Reservoir. These include boating, sport fishing (which also encompasses boating), canoeing/kayaking in selected areas (e.g. the more sheltered bays), and possible summer tour boat operations. Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Each of these opportunities is discussed in the following paragraphs. Most include a description of the opportunity, the issues, constraints and limitations associated with it, and then the requirements for implementing the opportunity.

Boating – Motorized and Sail In spite of relatively unfavourable conditions at times, a significant amount of boating does take place on the Kinbasket Reservoir. The principal market segments for boating activity on the Reservoir include: ♦ Local and regional residents who are boating enthusiasts and/or anglers ♦ Visitors and tourists with a desire to boat and/or fish in a scenic mountain setting, although those from long distances would not likely bring their boats and would have to rent. ♦ Houseboaters. This is an entirely different market niche but one that has been successful on larger lakes in other parts of the province such as on the Shuswap. It may be possible to map out safe travel routes along the Reservoir, when water levels are sufficient, and various bays and anchorages that could be used for day and overnight stops. The wind is always a concern, however, so this opportunity would need to be considered carefully. For such an operation to be viable docking facilities would need to be available, ideally where there is still water at low water levels. Issues, Constraints and Limitations Issues, constraints and limitations associated with boating on the Reservoir include the following: ♦ Approximately half the time it is not possible to get a boat in the lake because of low water levels, combined with poor access and launch ramps. ♦ To fish the lake in the spring it is necessary to drive to the Mica Dam to launch a boat – this is not possible from the Golden side. ♦ The debris makes the lake truly dangerous, so continuing to clean-up the debris on an ongoing basis will make a real difference. The debris problem is at its worst during full pondage. ♦ Some of the debris flows in from the rivers and in some cases trees fall in because of the generally unstable shoreline of the reservoir, so debris clean-up is an ongoing requirement. Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Stumpage around the private campsites should be addressed so that the seasonal residents can clear a path to enable their boats to get in and out at low water. ♦ High winds on the wide open portions of the Reservoir are a major problem, particularly when they come from the north. Summer thunderstorms can cause large waves and make boating extremely unsafe. ♦ When the water levels are higher during the summer and winds are from the south, the wind problem is not as much of a concern. ♦ There is a concern among local stakeholders that more than three decades after flooding the Reservoir there are still no proper boat ramps and boat mooring facilities. ♦ It is most difficult to get a boat in and out during the early spring because of all the mud, so generally it is the end of June before boaters can get a boat in from the Golden side of the Reservoir. Implementation Requirements Boating activities can only be successful if appropriate infrastructure is provided. This includes boat launches at key locations as well as docking facilities. Careful mapping of the reservoir would need to be done to provide navigational guides and identify sheltered bays that are protected from challenging wind and weather conditions and can be “harbours of refuge”. These should be available every 10-15 km along the shores of the reservoir, ideally, to provide for safe boating. Later in this chapter the infrastructure requirements are addressed, along with other priority opportunities.

Sport Fishing Fishing was a popular outdoor recreational activity in this section of the Columbia Valley prior to the flooding of the Kinbasket Reservoir. Fishing does occur on the reservoir during the spring, summer and fall, particularly when the water levels are high and boating conditions are better. Species that have been available include bull trout, ling cod, rainbow trout, kokanee and whitefish. At high water it is possible to launch boats at Bush Harbour and Esplanade Bay. Sport fishing is a popular activity in the Kootenay region and a comprehensive freshwater sport fishing survey done in 2000 indicated 648,000 angler days in the Kootenay region of BC. The vast majority of the fish caught were rainbow trout, cutthroat trout, and Kokanee. Adequate stocking of these species in Kinbasket Reservoir would, based on the data, Potential Commercial and Recreation Opportunities

22


Kinbasket Reservoir Commercial and Recreation Opportunities Study

attract a recreational sport fishery to the area, particularly if boating access was made easier and boating conditions made safer with significant debris removal. Issues, Constraints and Limitations The issues, constraints and limitations associated with fishing on the Reservoir include: ♦ Water level fluctuations are clearly a serious problem for boat access, compounded by poor existing boat launches and no adequate low water access. ♦ Fishing is generally considered to be better in the northern part of the reservoir than in the southern end, and the north end seems to be better in the spring and summer, while the south is better in the fall. ♦ The fishing is not as good as it used to be because of the draw-down in the water levels. The rainbow trout are close to extinct because they are shore-spawning fish and all of the draw-downs of the water level by the dam have decimated the populations. ♦ There is clearly more work needed to restore suitable fish populations. Implementation Requirements In order for a recreational fishery to thrive on the Kinbasket Reservoir the initial issue that needs to be addressed is stocking the reservoir with adequate fish. This will involve a number of steps including the following: 1. Further studies of the most appropriate fish species to introduce and analysis of any issues related to fish habitat and the fluctuating water levels in the reservoir. 2. Once studies have been completed, an adequate stocking program needs to be initiated and sustained on an ongoing basis in order to facilitate a good recreational fishery. 3. Boating access to the reservoir needs to be improved through improved boat launches and some docking facilities and suitable harbours of refuge and anchorages, which will require a significant investment on the part of various partners. 4. Road access to the key boat launching points needs to be enhanced, which is clearly an issue for all recreational uses of the reservoir. There have been many studies of the fishery for Kinbasket Reservoir and various stocking programs over the years. Clearly in view of the lack of sustainability of the preceding initiatives, further work needs to be done and Potential Commercial and Recreation Opportunities

23


Kinbasket Reservoir Commercial and Recreation Opportunities Study

this needs to be brought forward as a priority under the Water Use Plan. There may be a need to tap into additional funding for a more ambitious stocking program to help create a suitable recreational fishery on the Kinbasket Reservoir.

Kayaking/Canoeing in Selected Areas Canoeing and kayaking are popular recreation activities throughout BC and across Canada because of the proliferation of lakes, rivers and coastline across the country. An analysis undertaken for the Canadian Tourism Commission in 2003 indicated that among Canadians and Americans who have travelled in Canada during the previous 2 years there were approximately 7 million canoeists and kayakers among the adult population (18 and over) – 2.6 million in Canada and 4.4 million in the U.S. The demographic profile shown in Figure 3.2 indicates that canoeists and kayakers tend to be young or middle aged, fairly well educated and with above average household incomes. Figure 3.2: Demographic Profiles of Canoeists/Kayakers, 2000 Characteristics

Canadians

Gender Males Females Age (18+) 18 - 34 years 35 - 54 years 55 + years Average age Education University graduate Household Income Under $60,000 $60,000 - $99,999 $100,000 + Average Income Household Composition Adult only Any teens/children

Americans

54% 46%

55% 45%

46% 46% 8% 36 years

29% 48% 18% 43 years

29%

42%

59% 27% 14% $59,000 Cdn.

43% 33% 23% $71,600 US

61% 38%

61% 30%

Source: Canadian Tourism Commission

Portions of the Kinbasket Reservoir are ideal for kayaking and canoeing, particularly the more sheltered bays and inlets. Once again access is an issue as road access is generally required to access potential launching locations along the shoreline. Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

The primary target markets for this activity would be: ♦ Local and regional canoeists and kayakers who bring and launch their own canoes and kayaks ♦ The visitor and tourist market who also bring their own canoes or kayaks ♦ The longer distance tourists who do not bring their own canoes and kayaks and would have an interest in possible rentals and guided excursions. Issues, Constraints and Limitations The issues, constraints and limitations associated with the development of kayaking and canoeing activity in the Kinbasket Reservoir are very similar to those noted earlier for boating and relate to the difficulty of road access along the shoreline of the reservoir, and the actual conditions out on the reservoir, particularly with regard to debris and potential high winds. From a kayaking point of view it would be necessary to use a sea kayak as they are much more seaworthy under windy conditions and in rougher waters. The debris is less of a hazard for canoeists and kayakers than it is for power boaters, but it is nevertheless a problem as extensive debris along the shoreline makes for an unappealing paddle. Implementation Requirements The primary requirements are better road access to areas such as Bush Harbour and Esplanade Bay where it would be easy to launch canoes and kayaks, as well as provision of other day use facilities in these locations. These requirements are addressed in the Built Infrastructure and Facilities section of this chapter.

Possible Tour Boat Operations Scenic boat tours are a popular activity among sightseers in the Canadian Rockies. There are several operations on scenic mountain lakes such as Maligne Lake near Jasper and Lake Minnewanka near Banff. Lake Minnewanka was substantially enlarged on 2 occasions when Hydro dams were built at the west end of the lake. The boat tours have been successful for many years and they offer a 1.5 hour interpretive tour of the lake and surrounding area, providing information about the landscape, flora and fauna of the surrounding mountains. The season runs from May to October and the charge for the boat tour is $44 for adults and $19 for children. Kinbasket Reservoir is a huge body of water and would provide lots of interesting scenery for a similar boat tour during the summer months. Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Operations would need to be tailored to the water level and it is conceivable that, in addition to scheduled and charter boat cruises, it may be possible to operate a passenger shuttle service or ferry service across the reservoir during the peak summer season (e.g.- cruise from Bush Harbour to Valemount). This type of initiative would require an experienced operator and upfront capital investment in a suitable day-tour cruise boat. The boat would need to meet Coast Guard safety requirements for tour boats. It would be important that there are suitable docking facilities for the vessel in a location that would enable it to operate for much of the late May through early October period, which is the prime season for this type of activity. Issues, Constraints and Limitations The major constraints and limitations for this type of operation are similar to those noted earlier for boating and relate to debris on the reservoir and the need for docking facilities. A reasonable size tour boat capable of carrying 20-40 passengers would generally be sea-worthy enough for the Kinbasket Reservoir under normal summer conditions, but the type of vessel would need to be selected carefully and well-equipped with radios, sonar, radar, GPS and other modern navigational equipment. Implementation Tree trunk removal in shallow areas may be necessary to facilitate navigation of a tour boat and other recreational watercraft.

PRIORITY SHORELINE AND ADJACENT BACKCOUNTRY OPPORTUNITIES The backdrop of spectacular mountains around the Kinbasket Reservoir make it attractive for land-based outdoor recreation activities along the shoreline and in the adjacent backcountry. During the summer months it is ideal for shoreline and backcountry hiking, backpacking and various types of nature interpretation and heritage interpretation excursions. During the winter backcountry skiing and snowmobiling have a strong appeal in this region.

Shoreline and Back-Country Hiking, Backpacking and Nature Interpretation Hiking and backpacking is a significant outdoor tourism-recreation market niche. An analysis of this market prepared for the Canadian Tourism Commission in 2003 indicated a total of 11.2 million North Americans as of 2000, who had taken an overnight leisure trip in Canada during the previous

Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

two years, are hikers and backpackers. Of these 11.2 million adult hikers and backpackers, 4.5 million were Canadian residents and 6.7 million were US residents. Hiking in general is an extremely popular and growing recreation activity. Therefore, there is considerable market potential throughout the region for additional hiking / backpacking opportunities. The principal market segments for the Kinbasket Reservoir would be the following: ♦ Local and regional hikers and backpackers ♦ Local and regional nature enthusiasts who have an interest in hiking along the shoreline or in the backcountry to observe the natural environment – everything from trees and plant life to birds and wildlife ♦ Visitors and tourists to the region who are hikers and backpackers who will explore and hike on their own ♦ Visitors and tourists who are interested in guided interpretive hikes that could be offered by new or already established outdoor adventure and ecotourism operators in the region. In Figure 3.3 we have shown the demographic profiles for this hikers/ backpackers market, which indicates that the majority are in young and middle aged groups, are fairly well-educated, with above average incomes. Figure 3.3: Demographic Profiles of Hikers/Backpackers, 2000 Characteristics

Canadians

Gender Males Females Age (18+) 18 - 34 years 35 - 54 years 55 + years Average age Education University graduate Household Income Under $60,000 $60,000 - $99,999 $100,000 + Average Income Household Composition Adult only Any teens/children Source: Canadian Tourism Commission

Potential Commercial and Recreation Opportunities

27

Americans

48% 52%

58% 42%

43% 44% 13% 39 years

31% 45% 21% 43 years

27%

40%

66% 24% 10% $54,400 Cdn.

51% 30% 19% $65,400 US

65% 35%

66% 28%


Kinbasket Reservoir Commercial and Recreation Opportunities Study

Issues, Constraints and Limitations The principal issues, constraints and limitations associated with these largely trails dependent activities include: ♦ There are no official trails to the high mountain areas, although one group did put a lot of effort into the trail to Fairy Meadows Hut about six years ago – more recently the road into that area has been closed so no further work has been done on that trail, although some adventurous hikers/climbers use it from time to time. ♦ In general the trails development potential is primarily for backcountry mountain hikes over fairly rugged terrain. ♦ Additional commercial recreation activity would require a better access road and more parking at Bush Harbour, assuming this is the main access point for possible commercial recreation activities. Implementation Requirements There are already a number of existing trails adjacent to the Kinbasket Reservoir, although for the most part these are hidden from view except to those who know the trails. There is a need for trailhead signage and some trails upgrading in order to have a broader appeal. Like any recreation activity there is a need to make enough of an investment in order to enable a good hiking experience. The key implementation steps here would be: 1. Work with the Parks and Recreation Department of the Regional District to identify existing trails that could be better marked and upgraded, particularly those that are accessible from the Bush Harbour and Esplanade Bay area, as well as other existing recreation sites near the Kinbasket Reservoir. 2. Marshall funding resources to engage in the trails upgrading project, soliciting contributions from various partners including the Regional District, BC Hydro, the province and possibly corporate sponsors such as local forestry companies. It will be important that any trails development and upgrading projects are compatible with the Regional District’s Parks Plan for Area A, as well as the GBRAP.

Heritage Tourism Interpretation and Expeditions The Kinbasket Reservoir and surrounding area have a rich pioneering history, going back to the first European explorers and settlers in the area. Most notable is David Thompson who explored the area in 1811. It is possible to Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

follow his historic route through the region. One of the most famous locations is Boat Encampment, which was located on the “Big Bend” of the Columbia River and was the rendezvous for the famous “Fur Brigades”. These fur traders worked for the Hudson’s Bay Company, the North West Company and the Pacific Fur Company. Many other famous historical figures including Sir Alexander Mackenzie, Simon Fraser, Captain John Palliser, Sir James Hector, Walter Moberly and Sir Sanford Fleming also traversed the region in search of suitable passes for roads and railways. Sections of the original historic routes can still be located in the mountains and valleys adjacent to the Kinbasket Reservoir. It would be possible to develop historic treks or expeditions along these routes with interpretive guides who would bring alive the history of the area. Some of these could be day hikes from developed day use areas, such as that proposed for Bush Harbour, while the more adventurous could do multi-day expeditions into the back country. The more recent history of Hamber Provincial Park and the building of the “Big Bend Highway” through the area could also be interpreted. This was a key section of the Trans Canada Highway when it was first completed in 1940 and opened by the Honourable T.D. Pattullo, the Premier of British Columbia, who declared the following: Today, by the rendezvous from the earliest days the Fur Brigades (note David Thompson, Boat Encampment - 1811), we set the seal upon another splendid accomplishment. In the service of our people we have bridged broad rivers and flowing tides. Now, with the opening of this grandly scenic section of TransCanada Highway, we remove another stubborn barrier to uninterrupted travel and make another notable contribution to the cause of progress a human intercourse. Issues, Constraints and Limitations Currently there is little in the way of signed and well-maintained trails that follow these historic routes. Even access to the trailheads is difficult because of the generally poor road access in the region. There is also a lack of any directional or interpretive signage that would identify such routes or the historic significance of the area. For the most part there are no comfortable tourist accommodations in the immediate area, which would limit the market to the more adventurous travellers willing to travel “off the beaten path”. Implementation Requirements Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

For this opportunity to be pursued effectively investments would need to be made in some infrastructure including: ♦ Trailhead signage ♦ Developed hiking trails following the historic routes ♦ Some interpretive signage at trailheads and along the routes at key intervals ♦ Viewpoints with interpretive signage at historic and scenic locations. Beyond this basic infrastructure, other requirements include: ♦ Development of suitable maps and brochures of these historic routes for use by those on self-guided hikes and expeditions ♦ Encouragement of local outdoor adventure and ecotourism operators to incorporate these heritage tourism packages into their offerings ♦ Promotion of these heritage tourism opportunities by local and regional tourism organizations such as Tourism Golden and Kicking Horse Country.

Back-Country Skiing and Snowmobiling These are the winter recreation activities with the best potential and include ski touring, cat-skiing, heli-skiing and snowmobiling. Any possible encouragement of these activities would need to be done in a way that conforms to GBRAP and minimizes conflict between motorized and nonmotorized activities. Currently Chatter Creek Lodge offers winter adventure packages featuring ski touring, cat skiing, heli-skiing and snowmobiling. These activities are best experienced in the backcountry by using guided operators such as Chatter Creek Lodge. The snowmobiling experience that Chatter Creek Lodge offers is considered to be extremely high quality. Mica Heli-skiing is another backcountry lodge in the region focused on high-end heli-skiing vacations. Another operator is Icefall Lodge, which is a comfortable backcountry lodge located 60 km north of Golden. It is situated east of Bush Arm, up past the Valenciennes River valley at an elevation of 6,300 ft., just west of Banff National Park. It is accessed by helicopter and features hut-based ski touring and ski mountaineering, as well as mountaineering and hiking in the summer. These are successful niche operators and if access to the region is improved, there may be potential for a few additional operators in the region, although not likely in the short term.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

For backcountry ski touring and snowmobiling, trails development is an important issue and this could be undertaken to cater to day users who live in the region and not be associated with any lodge operations. Snowmobile trails need to be coordinated with the Golden Area Snowmobile Society. Snowmobiling around the shoreline and in the accessible backcountry does have good potential. Backcountry ski trails could follow some of the hiking trails developed for summer use. Issues, Constraints and Limitations The primary constraint in developing backcountry skiing and snowmobiling adjacent to the reservoir is the limited road access. In winter the road is really only maintained for use by the one operator, Chatter Creek Lodge, who pays for the clearing and maintenance of the road. Currently it is essentially a one-lane road with little in the way of turnarounds or parking available. Good road access at least to Bush Harbour would be essential to enable more extensive ski touring and snowmobiling activity around the reservoir. There are, of course, GBRAP guidelines for winter activities that would need to be adhered to when any additional trails or recreational activities are being considered. Another constraint is water levels, as frequently the water levels drop after ice has formed leaving unsupported ice that is dangerous if inadvertently used by skiers, snowmobilers or snowshoers. Implementation Requirements As with summer trails development there will be a need to access funding resources to expand on snowmobiling and backcountry ski touring trails adjacent to the reservoir. Cross-country ski trails could tie-in with summer hiking trails, while snowmobile trails could focus more on the use of existing logging roads (which may also be used by skiers). It will be important to separate the motorized and non-motorized uses.

BUILT INFRASTRUCTURE AND FACILITIES REQUIRED TO REALIZE OPPORTUNITIES It is important to recognize that there is a significant cost associated with the design and operation of the Kinbasket Reservoir as a recreational area – it simply does not work well as is. Therefore, significant investments need to be made in suitable infrastructure that will enable the safe access to and use of the water and adjacent shoreline and back-country for recreational purposes. At minimum the following investments in infrastructure and built facilities need to be made to realize the area’s recreational potential:

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Improved access road to Bush Harbour, Esplanade Bay and other high potential recreational areas ♦ Boat launch and docking facilities at Bush Harbour ♦ Public campground facilities at Bush Harbour ♦ Upgraded recreation site and boat launch at Esplanade Bay ♦ Other enhanced public recreation sites, campgrounds and boat launches ♦ Hiking and interpretive trails ♦ Possible roofed accommodation facilities where permitted ♦ Possible small-scale recreational real estate opportunities ♦ Study of possible weir development. Each of these opportunities is described on the following pages.

Improved Access Road to Bush Harbour, Esplanade Bay and other Areas There is widespread sentiment among local users and stakeholders that road access to the shores of the Kinbasket Reservoir is highly inadequate, particularly compared to that for other reservoirs in the province. The primary access from the Golden area is via the Forest Service Road from Donald to Bush Harbour. ♦ There is general concern that there is no security of access to this area as the road has been primarily maintained by LP and if they shut down their forestry operations in the area there will be no road maintenance whatsoever. ♦ Road maintenance is a big concern and at the very least re-grading is needed with additional gravel. The road is narrow and windy with few turnaround spots and very little parking available. ♦ The section of road from km 45 to km 65 could be significantly improved as it is currently extremely narrow and in need of places to pull out, to park and to turn around. ♦ The Sullivan Road was decommissioned, so there is no access to the mountainous terrain. ♦ The Bush Forest Service Road past the rock cut is now closed which means all access to the higher snowmobiling areas is now closed.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ In general there are very few places where you can access the lake by road. Local users and stakeholders feel that BC Hydro and/or the Province should be required to maintain this access road and that there should be an ongoing budget for maintenance, rather than depending on Louisiana Pacific during the summer and Chatter Creek Lodge in the winter. It could be improved, widened and then maintained to provincial standards. Short term road enhancement opportunities include: ♦ Install guard rails, signage where needed ♦ Improve access year-round (including winter) ♦ Ensure that upgraded standards of maintenance are adhered to – there should be a prescribed standard that the road is maintained to in both summer and winter. ♦ Add signage to help create sufficient awareness of Kinbasket Reservoir – currently there is no signage indicating the Reservoir’s existence. In the short-term there is a need for signage to bring attention to existing activities/services available at the Reservoir (e.g.- the existing boat ramps, Forestry Recreation Areas and campgrounds). Creating awareness helps to make it easier for investors/entrepreneurs to develop business opportunities associated with the existing and potential recreation activities. Issues, Constraints and Limitations These are as follows: ♦ Probably the biggest limitation here is accessing the significant capital dollars and operating/maintenance dollars required for a significantly upgraded road to Bush Harbour, Esplanade Bay and other areas with high tourism-recreation potential. ♦ This funding issue is also tied up in jurisdictional issues, as currently the road is designated as a Forest Service Road with any ongoing capital and maintenance costs the responsibility of the users in conjunction with the Ministry of Forests. ♦ Some sections of the road will be extremely expensive to repair/upgrade, such as the Rock Cut area which has recently been closed because of slide hazards.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Implementation Requirements The following process needs to be undertaken in order to implement this opportunity: 1. Sort out jurisdictional issues regarding the road and work towards recognizing it as a provincial secondary road, which is open to a multiplicity of users including forestry companies, other businesses, local residents and tourists/visitors. 2. Work with the province, BC Hydro and existing users to access infrastructure funding for a major upgrade. 3. Determine jurisdictional and user responsibility with regard to ongoing road maintenance once upgraded, ensuring that it is either an ongoing provincial responsibility or there is a clear contribution formula for each of the partners involved. 4. Undertake an engineering assessment and feasibility study for road upgrading. 5. Tender out the road upgrading contract. 6. Implement a signage program that includes appropriate road safety signs, mileage updates (e.g. “Bush Harbour 45 km”), and signage identifying tourism and recreation facilities and services.

Boat Launch and Docking Facilities at Bush Harbour Public use of the Bush Harbour area by boaters requires clean-up and development of some infrastructure. BC Hydro held a meeting on September 10, 2008 in Golden to discuss and gather feedback on draft designs for improvements at the Golden end of Kinbasket Reservoir. BC Hydro is required to improve recreational boat access to the Kinbasket Reservoir, as directed by the provincial Comptroller of Water Rights (CWR) through the Columbia River Water Use Plan. The purpose of the meeting was to finalize the designs for improvements at Bush Harbour for submission to the CWR. The Bush Harbour draft design presented included the following components: ♦ New parking lot and access road ♦ New pit toilet at parking area ♦ A totally new boat launch ramp with a concrete top •

Potential Commercial and Recreation Opportunities

The toe of the new ramp would be at elevation 724.6 m (2377.4 ft), Whereas the existing informal ramp ends at 734.6 m (2410.1 ft)

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There would be a turnaround partway down the ramp – at 744 m (2440.9 ft)

♦ A floating walkway ♦ The addition of a breakwater for wind protection (see below). The September 10th meeting participants were generally supportive of the proposed design, but felt that some adjustments were needed because of strong north winds at the site. In particular, they felt it is important to add a breakwater to protect from the wind and floating woody debris and to adjust the ramp location within the bay to gain more wind protection. Ideally the floating walkway will be substantial enough to serve as a floating dock – otherwise a floating dock should be added to the design in order to handle temporary mooring requirements when the water level is sufficient. Implementation Requirements BC Hydro staff and a representative from Moffatt and Nichol visited the site on September 11, 2008, accompanied by interested meeting participants, to better understand local conditions. This project is essentially in progress towards implementation and the next steps are as follows: 1. Moffatt and Nichol will submit a final design for Bush Harbour that incorporates the suggested adjustments to the Comptroller of Water Rights for his approval. 2. Once approved, construction can be tendered by BC Hydro. 3. If everything proceeds quickly, actual construction will take place during the spring of 2009 when water levels are low enough to facilitate this. 4. Therefore, the new boat launch (if everything moves quickly) could be ready for use during the summer of 2009 – otherwise everything would likely be delayed until 2010.

Public Campground and Day Use Facilities at Bush Harbour There is strong support by local tourism and recreation stakeholders for proper development of a campground facility at Bush Harbour. Clearly this would require an improved access road. The location is perceived as a natural since there are large cleared areas along the shoreline, and when water levels are high it is an extremely scenic setting. Local stakeholders and elected officials feel strongly that Bush Harbour is in an unacceptable state at present and that the Province should have stepped in long ago and maintained a proper campground with toilets and litter control, as well as

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

putting in a proper boat launch. Key aspects for any such development should include: ♦ The Bush Harbour campground should be an integrated project within an overall park development and a proposed boat launch project – this would create a focal point for outdoor recreation activity for regional residents and tourists. Discussions with the Regional District indicate that this is compatible with their Parks Plan, so they would be a willing partner. ♦ It will be important to amass a sufficient budget to properly develop the Bush Harbour area for high quality outdoor recreation. ♦ There are currently no services available at Bush Harbour in terms of fuel or any other supplies and ultimately some of this may be needed to develop it as a full-fledged recreation area. Recommended Facilities and Amenities The specific facilities that should be developed to cater to local/regional recreation users and tourists/visitors are the following: ♦ 50-100 campsites separated by trees and shrubs for privacy, including rustic RV sites with limited services (similar to a Provincial Park campground) ♦ At minimum each campsite should have water, a picnic table, barbecue or stone campfire pit, and possibly an electrical hook-up ♦ Washrooms and showers in 1 or 2 buildings ♦ Sewage pump-out station for trailers and RV’s ♦ Possibly a small campground office cabin with small shop/snack bar selling sundry items, fishing tackle, light snacks, soft drinks and juices ♦ Firewood storage and garbage area ♦ Appropriate landscaping, blending with the natural landscape of the site ♦ Tastefully designed gateway and directional signage. The campground should be adjacent to a day use area (for the use of day visitors and campers) with the following facilities: ♦ Picnic tables and toilet facilities ♦ Playing field ♦ Children’s playground

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Interpretive sign showing map of local land area features (e.g. old growth forest). Historical aspects and sites could be interpreted, such as: •

David Thompson historical plaque

Boat encampment

History of construction of the Big Bend Highway.

♦ Trailheads and trails – enhancement of the existing should be undertaken with appropriate signage and trail upgrading where needed. New hiking and interpretive trails emanating from the area could be developed over time. Clearly some of the preceding could be added over time as campground and recreation area utilization warrants and funds are available. Initial development costs for the program described above would likely be at least in the $500,000 to $1 million range. Implementation Requirements This development could be done in partnership with the Regional District and is compatible with the Area A Parks Plan. The implementation steps are as follows: 1. Undertake a preliminary concept/feasibility study to determine in more detail the physical feasibility of developing the recommended facilities and amenities, capital costs including site preparation, servicing, construction and landscaping, identifying any environmental issues or concerns, and examining potential operational costs and revenues. 2. Determine partners involved in the development and operations of the proposed campground and day-use area. A key partner is likely to be the Columbia Shuswap Regional District (Area A) and presumably BC Hydro could be tapped into as an important investment partner in order to realize recreational benefits of the reservoir, and it may be possible to partner with Ministry of Tourism, Sport and the Arts to leverage funds for improvements to recreation sites. 3. The Park could potentially be managed by the Regional District, in which case it would require a Licence of Occupation or lease with the province. 4. Tender development and construction. 5. Identify and arrange a concession with a park operator (unless the Regional District wishes to operate it directly). 6. Initiate operations of the campground and day-use area, ideally structuring user fees to cover operating costs.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Upgraded Recreation Site and Boat Launch at Esplanade Bay There is currently a small Forestry Recreation Site at Esplanade Bay. It is set-up as a day-use area with picnic tables and outhouses. When the reservoir water level is high, it is an extremely scenic setting with a panoramic view. There are also rustic campsites and a gravel boat launch available here. The site is essentially user-maintained and in need of upgrading. Possible upgrading would include the following elements: ♦ Additional picnic tables and fire rings for day users ♦ Additional/upgraded outhouse facilities ♦ Upgraded boat launch ♦ Appropriate signage ♦ Enlarged parking area. Implementation Requirements This may again work best if the Regional District were to acquire a Licence of Occupation or lease with the province, in order to take over management of the site. Other key implementation steps would include: 1. Getting cost estimates for the proposed improvements from local contractors. 2. Acquiring the capital funds to make the improvements, tapping into partners such as BC Hydro and Ministry of Tourism, Sport and the Arts. 3. Tender a contract for making the site improvements. 4. If practical, consider implementing a nominal user fee for overnight camping to recover some of the operating costs.

Other Enhanced Public Recreation Sites, Campgrounds and Boat Launches The Columbia Shuswap Regional District has an extensive Parks Plan that was completed in 2007. It identifies many other possible parks and recreational areas throughout Electoral Area A that could be acquired and/or upgraded and then managed by the Regional District. Of the many sites they have identified, approximately a dozen are along the shoreline or near the access road to Kinbasket Reservoir from Golden. In Figure 3.4 we have listed eight parks, recreational and conservation areas that are being considered for management by the Regional District that should be included as priorities for development in the context of this study. Potential Commercial and Recreation Opportunities

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Figure 3.4: Priority Parks Development for Area ‘A’ Near Kinbasket Reservoir Park Classification and Name of Park Waterfront Parks Abetibie Lake Columbia River Access Susan Lake Recreation Site Conservation Parks Free Flowing Columbia River Giant Cedars

Wiseman Lake Special Feature Parks Bush Arm Hotspring Donald Settlers Graveyard

Location

Current Land Ownership

East of Donald TCH - Donald Bush River Forest Service Road

Crown - Provincial MOT Ministry of Tourism, Sport & the Arts

15 km stretch of River from TCH to Kinbasket Lake 33.8 km north of Donald, Bush River FSR 5 km west of Donald Bush Arm, near mouth of Bush River Donald, adjacent to CPR

Estimated Development Costs

Estimated Operating Costs

$10,000-$25,000 $25,000-$50,000 $10,000-$25,000

$3,000-$5,000 $3,000-$5,000 $3,000-$5,000

Crown - Provincial

n/a

n/a

Crown - Provincial

$5,000-$10,000

$3,000-$5,000

Crown - Provincial

$25,000-$50,000

$3,000-$5,000

Crown - Provincial

$25,000-$50,000

$3,000-$5,000

Crown - Provincial

$5,000-$10,000

$3,000-$5,000

$105,000 $220,000

$21,000 $35,000

Total Estimated Costs for Priority Parks

Source: Analysis of information in various tables of Electoral Area ‘A’ Parks Plan Final Report, Columbia Shuswap Regional District, May 2007.

As shown in Figure 4.4, we have identified the type of park, location, current landowner, and estimated development and operating costs, as determined by the Regional District in its Electoral Area ‘A’ Parks Plan. We are recommending that these park developments be designated as high priority (intended to be implemented with one to three years), because they will have the most short term impact on enhancing the recreational potential of the Kinbasket Reservoir and surrounding shoreline and adjacent backcountry. Low Level Reservoir Access The Comptroller of Water Rights did not approve improvements at the existing Nixon Creek boat launch because of the current uncertainty of access road maintenance. However, at the September 10, 2008 Kinbasket Reservoir stakeholders meeting BC Hydro committed to completing a study to investigate the feasibility of alternative boat launch sites to provide low level reservoir access. Meeting participants suggested Game Creek, north of Potential Commercial and Recreation Opportunities

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Surprise Rapids as a potential site. This study will include determining the maintenance status of existing roads.

Hiking and Interpretive Trails There are already a considerable number of hiking trails in the area, although many of these are not identified with trailhead signage and require some upgrading in order to appeal to a broader cross-section of users. ♦ This type of trail enhancement should be encouraged, especially where a trail offers particularly scenic terrain and/or access to unique natural features (e.g. Giant Cedars, Bush Arm Hotspring and Canyon). ♦ Trails accessing unique natural features could be developed as interpretive trails with appropriate interpretive signage at key intervals and at the sites of unique natural features and panoramic views. ♦ As noted earlier in this chapter, there are some 7 million Canadian and American travellers who are hikers/backpackers that can be tapped into, beyond use by local and regional residents.

Possible Roofed Accommodation Facilities Where Permitted Some high-end outdoor adventure/ecotourism lodges do exist like Chatter Creek Mountain Lodge and the Mica Heli-Guides Lodge. It is recognized that there may be some potential for other backcountry lodges, although it will be important that they be located in areas that are compatible with the GBRAP. ♦ Fishing oriented lodges are not likely to be viable unless the fishing can be substantially improved. ♦ One backcountry lodge development is currently under way at the old Bush River logging camp. The plan is to build a 20-bedroom lodge plus 4-5 cabins. Amenities will include running water and electricity. The lodge is being built during the summer of 2009. It is hoped to appeal to anglers, hunters, climbers, hikers and ATV enthusiasts during the spring/summer/fall, as well as snowmobilers in winter. It is important to note that only small-scale backcountry lodge accommodation facilities, similar to those that already exist, are the only type of roofed accommodations that could be considered for the area, because of its relatively limited access and the fact that the nearby main communities such as Golden and Revelstoke have a significant supply of much larger scale accommodations to satisfy the needs of the tourism market.

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Large scale resorts such as those in the Okanagan would not be suitable along the Kinbasket Reservoir as they would not be compatible with GBRAP, nor would they be viable from a financial perspective. Any significant lakefront resort, similar to those in the Okanagan, requires that lake levels are always consistent with a stable shoreline, which is simply not the case for the Kinbasket Reservoir.

Possible Small-Scale Recreational Real Estate Opportunities Outdoor recreation-oriented real estate developments may potentially be a commercially viable opportunity, as long as the Alberta market is strong. The concept would be development of waterfront or water-view lots along some of the more scenic and accessible shoreline areas of the Reservoir, built at least 25 feet above the high water level to ensure a non-developed shoreline area is maintain for the transit of wildlife and to enable public access along the shore, where appropriate. Improved road access is clearly the critical consideration with regard to any type of recreational real estate development. There are already precedents for a limited amount of recreational real estate. The Esplanade Bay cottage society is an example of an existing small recreational real estate development, which started in 1981 based on a 10year land lease that has been renewable. ♦ These are rustic cottages with water systems fed from a stream and using outhouses with no septic systems. ♦ There are 20 members of this Cot-Gem Camp Society, which is a nonprofit society and each of the 20 members has a lot with cabin or trailer, but with no concrete foundations or basements – the buildings are considered non-permanent. ♦ Apparently creating a new similar camp society is considered to be impossible as the provincial government will not give out more of these leases. At Williston Lake there is a significant precedent for reservoir shoreline real estate development at Torwood Estates on Peace Reach, a 45-minute drive west of Hudson’s Hope. More than 40 lots have been sold to date, mainly at prices ranging from $100,000 to $300,000 or more for developed lots with access to hydro and water. The development is relatively low density and of a rustic rural recreational character, in contrast to the high density recreational real estate developments prevalent in such areas as the Okanagan and at major mountain ski resorts. In addition, both the Arrow and Revelstoke Reservoirs have leased land that has been developed into remote strata sites where it is possible to pay an Potential Commercial and Recreation Opportunities

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

annual fee to locate a trailer on a temporary basis. This concept would provide a less expensive opportunity for local residents than the current two cottage developments on the Reservoir. For Kinbasket the primary market would likely be for small-scale rustic rural recreational cottage properties, in contrast to the high end housing and condos being developed at Kicking Horse. It would be important to adhere to strict guidelines in any possible consideration of recreational property development. Such guidelines might include the following, among others: ♦ Consideration could only occur in limited areas permissible under the GBRAP zoning and already accessible by road and in proximity to existing and potential recreational and cottage developments. ♦ There would be no intrusion on any sensitive natural environments or wildlife habitat. ♦ Site conditions would permit holding tanks or septic tanks to handle sewage. ♦ Hydro power may or may not be available, depending upon proximity of existing lines and ability to connect with minimal environmental intrusion. ♦ Market potential for any such developments would need to be demonstrated clearly, before any such lands could be set aside for sale or lease. Any potential recreational real estate developments would need to be compatible with any existing regional and community land use management plans, such as GBRAC and Official Plans. Development of any recreational real estate plans would need to adhere to all appropriate environmental assessment, community consultation and land use planning requirements within the Regional District. One possible location that could be considered is a large point of land to the west of Bush Harbour across Succour Creek Inlet. This area has great exposure to the main harbour area, Gold River and down into the Columbia Reach, so would be convenient and in a very scenic locale when water levels are high. The land is more gently sloping than much of the Reservoir’s shoreline, making it better-suited to this type of development. Proper road access would need to be provided, in order to make this land suitable as recreational real estate.

Study of Possible Weir Development In order to better control water levels for recreation use some stakeholders advocate development of a weir project, possibly at Surprise Rapids or some Potential Commercial and Recreation Opportunities

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other suitable location. The concept would be to control water levels better by segregating a smaller portion of the Lake where the water level could be controlled. ♌ However, it is unclear whether this is physically possible and at what cost. ♌ If this idea is to be seriously considered, a feasibility study needs to be undertaken. Perhaps the weir development could be integrated with a small independent power project. The study could examine whether or not it would be possible to build a structure that could be used for power generation and stabilizing the lake levels, all without losing the mandate to control the water supply of the lower dams. The possible power generation could provide revenue to offset development and operating costs of the weir. ♌ Perhaps government could finance the high upfront capital costs of such a project and sell lakefront property to help recoup the cost. This is similar to what was proposed to finance a possible causeway to replace the Upper Arrow Lake ferry on the Arrow Lakes Reservoir. It is important to recognize that any such weir development would divide off a section of the existing reservoir, so boat access would be restricted to the water behind the weir, unless some type of a navigation lock could be established, which would likely be a hugely expensive proposition.

OPPORTUNITIES IN OTHER SECTORS The focus of this study is on the recreational potential of the reservoir, including commercial opportunities associated with the recreation and tourism potential. The other principal land uses which are appropriate for the area surrounding the reservoir are forestry, which has always been actively pursued in and around the reservoir, plus the possibility of independent power projects in the adjacent river valleys, if this were permitted.

Ongoing and Incremental Forestry The primary forestry operator in the region is Louisiana Pacific which harvests considerable timber using the Bush Harbour Forest Service access road. This company is the successor of Evans Forest Products which existed when the reservoir was first flooded. As noted earlier in this report, the costs of forestry operations were significantly impacted by the creation of the reservoir, plus there was a significant loss of forest resources at lower elevations. The primary ongoing and incremental forestry economic opportunities in the region around the Kinbasket Reservoir include the following: Potential Commercial and Recreation Opportunities

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♦ Incremental forest harvesting, based on annual allowable cuts for the licensees ♦ Development of additional value-added wood products businesses in the area, making use of local timber.

Possible Consideration of Independent Power Projects Independent power projects are possible on the adjacent river valleys and in the case of development of a weir project. Assessment of this type of opportunity is beyond the scope of the current study and may not be compatible with the GBRAP. At the very least any such developments tend to be very controversial and would need to proceed through an extensive consultation and environmental assessment process before they could be considered for approval. Given the significant negative impacts on the region of the existing hydro power development, this type of opportunity may be inappropriate to even consider, except in the case of the possible weir development.

CONCLUSIONS REGARDING COMMERCIAL AND RECREATION OPPORTUNITIES The focus of this analysis has been on the tourism and recreation activities and commercial opportunities that hold potential in and around the Kinbasket Reservoir. ♦ The analysis has demonstrated that there is some significant incremental tourism and recreational potential, but significant capital investments are required in improved access and some basic recreational facilities and amenities. ♦ Involvement of private sector operators would be required to provide the corresponding services needed to facilitate use by local and regional residents and tourists/visitors. ♦ These businesses would make a contribution to the local economy, although the overall economic impacts of all of this activity would still be on a much smaller scale than the losses incurred to the local and regional economy that continue on an ongoing basis as a result of the creation of the reservoir.

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4 – REVIEW OF ECONOMIC AND ENVIRONMENTAL IMPACTS

The scope and magnitude of the significant economic and environmental impacts that have resulted from the flooding of the Kinbasket Reservoir have been examined in a number of studies over the years since the 1970s. The economic and environmental impacts stem primarily from the flooding of the huge land area that is now the reservoir. As a result, considerable lands were lost for important economic uses such as forestry and tourism. Existing regional transportation routes were cut off by the flooding of the reservoir and the loss of taxable land base has had significant impacts for community and regional economic development and financial viability.

COMMUNITY AND REGIONAL ECONOMIC IMPACTS We have summarized the economic impacts in the following categories: ♦ Forestry ♦ Regional transportation ♦ Tourism and recreation ♦ Community economic development. Details of each are outlined in the following paragraphs. It is important to note that the economic impact numbers for 1994 that have been used in this study are those that were put forward in the 1994 study entitled: Golden Area Mica Report 1994: The effects of the Mica Dam and Kinbasket Reservoir on the Town of Golden and Area, prepared by Paul Hambruch, December 1994. While the results of that study appear reasonable and plausible, we have not attempted to verify in detail the methodology and assumptions used to develop the economic impact estimates in that report. To extrapolate the 1994 numbers to 2009, we applied an annual inflation factor of 5%. While it is possible to debate what inflation factor should be used for each year, we believe that this broad-based projection provides an understanding of the order of magnitude of the current annual economic losses associated with the creation of the Kinbasket Reservoir.

Impacts on Forestry Sector The principal loss to forestry is the significant loss of resources, as well as increasing costs of harvesting because of changes in accessibility to the remaining resources. Review of Economic and Environmental Impacts

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♦ Loss of 105,000 acres of productive forest land from Golden to Mica in Electoral Area A. These were lower elevation forest lands which have the highest growth and productivity rates and have been permanently lost. This was mainly hemlock, fir and cedar and would not have been impacted by the pine beetle. This productive forest land could have provided a consistent timber supply to local mills that have incurred significant viability problems over the years. •

The resulting loss of income to the economy of Golden and area was estimated at $3.38 million annually in 1994 dollars.

If this amount is capitalized for the period 1973 through 1994 (at 7%) the total value of the lost timber resources exceeds $48 million.

Inflating this figure to 2009, using a lower capitalization rate that would be applicable in recent years, results in an overall loss to the region’s economy since 1973 in the range of $100 million, for forestry alone.

♦ Higher forestry operational costs to tap into remaining resources in region. This is as a result of the remaining resources around the Kinbasket Reservoir being in higher elevation and steeper slope areas where tree productivity is lower, operating costs are higher and the risks of significant negative environmental impacts are greater. For the forestry companies the costs of accessing timber have increased substantially: •

In addition to the higher elevation, longer distance incremental access costs, forestry companies have been forced to pay for ongoing maintenance of the access roads on either side of the reservoir, which replaced the old Big Bend Highway, a provincial road.

It is estimated that the cost, as of 1994, of maintaining the Sullivan-Bend main road on the east side of the reservoir is a $1.37 per cubic metre of timber harvested, and is even higher for the West Columbia Forest Service Road to Wayne Creek at $2.40 per cubic metre.

♦ Tightening environmental restrictions as a result of significant habitat loss. This means forestry companies are not able to harvest in a number of the more easily accessible valleys, as these areas need to be preserved as wildlife habitat, given the significant loss of such habitat with the flooding of the reservoir. ♦ Overall annual loss of forestry sector income to Golden and area is $6 to $8 million per year. This is as a result of the lost forestry opportunities just described and does not include the negative impacts of lower profitability, as a result of the higher timber harvesting costs imposed by the flooding of the reservoir.

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Regional Transportation Impacts As noted earlier, the Big Bend Highway was a transportation corridor through the area now occupied by the Kinbasket Reservoir and was a provincial highway extending 117 km from Donald to Boat Encampment. Until 1961, this was really the main route through the region. This area was flooded by the reservoir and necessitated that road access be provided on both sides of the reservoir, in order to access resources along the shoreline of the reservoir. ♦ The loss of infrastructure to the region is estimated at $6.4 as of 1994, which, when inflated to 2009 dollars would be more than $13 million. ♦ The replacement of this once fine highway with rough, poorly maintained narrow forest service roads is completely inadequate. ♦ This provides extreme limitations to tourism and recreation use and access to the region, as well as imposing the earlier noted higher costs on forestry companies. ♦ The flooding of the reservoir has also eliminates a north-south route from Valemount down to the Revelstoke and Golden areas through the Canoe Valley Evans Forest Products built a road through to Valemount in 1965.

Tourism and Recreation In spite of the Kinbasket Reservoir offering a large body of water and scenic views, when at full pondage, which has a certain amount of tourism and recreation potential, it should be noted that this area of the Columbia River Valley already had a number of attractive lakes and rivers which provided waterbased recreation opportunities and scenic views. The historic photos in Figures 4.1 and 4.2 show aerial views of Kinbasket Lake and Boat Encampment prior to flooding and highlight the extreme natural beauty of the area at that time. Figure 4.1: Aerial View of Kinbasket Lake Prior to Flooding

Source: Wenatchee Valley Museum – J. A. Weaver Collection, Courtesy Columbia Basin Trust

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Figure 4.2: Aerial View of Boat Encampment Prior to Flooding

Source: Wenatchee Valley Museum – J. A. Weaver Collection, Courtesy Columbia Basin Trust

The tourism and recreation opportunities on the Kinbasket Reservoir are severely limited as a result of the following factors: ♦ Highly inadequate access other than for 4-wheel drive vehicles ♦ Much of the reservoir experiences challenging boating conditions as a result of floating debris, wind conditions and the narrow water profile ♦ Steep banks around the reservoir preclude shoreline access and use ♦ Widely fluctuating water levels, which can vary in elevation annually by up to 155 ft., means extensive areas of the Reservoir are empty and become mud flats particularly during the spring ♦ The fluctuating levels also constantly replenish and mobilize debris which is an extreme problem throughout the Reservoir. A further limitation on the tourism potential is the fact that little or no infrastructure has been provided for recreational users with only rudimentary boat launches and ramps (gravel) that have generally not been properly maintained and do not provide access to the water at lower water elevations. Other constraints on tourism and recreation include: ♦ The significant size reduction of Hamber Provincial Park – reduced from 203,000 hectares to only 24,000 hectares, a reduction of almost 90%. There has been no investment in other provincial parks near the Kinbasket Reservoir, yet other major reservoirs in BC have benefitted from significant investment in one or more Provincial Parks along their shorelines. ♦ Loss of key potential circle touring routes. The opportunity for a number of circle recreation tours that would have included some or all of the Big Bend Highway has also been lost, and it is well known in the tourism industry that circle touring routes are much more attractive to tourists than one-way routes that require returning over the same route. Review of Economic and Environmental Impacts

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Substantial fishing and hunting opportunities have been lost. This is as a result of the significant land base habitat loss, loss of rivers and lakes in the Columbia River Valley, and the inadequate fisheries program in the Kinbasket Reservoir. ♦ Significant loss of potential for recreational property development. A certain amount of this could have occurred along the shorelines of the original lakes and rivers in the area that was flooded by the Kinbasket Reservoir. The new reservoir is a much more unfriendly environment for recreational property development because of the fluctuating water levels and challenging boating conditions, along with the steep shorelines and the need to maintain lower levels in a natural state for wildlife habitat, in place of the large areas of habitat lost in the valley bottoms. ♦ Wildlife, waterfowl and fish stocks lost represent multi-million dollar annual losses to area’s tourism industry. This is as a result of habitat destroyed by the Kinbasket Reservoir, resulting in very significant wildlife, waterfowl and fish population declines in the region. •

The 1994 Economic Impact Study quantified these losses, recognizing that hunter-days and angler days in the region have been substantially reduced and various tourism and recreation surveys over the years have quantified the dollar impact of these hunter and angler days.

It is also recognized that the lost wildlife, waterfowl and fish populations have an impact on the non-consumptive tourism market niches such as ecotourism, catch and release fishing, and wildlife photo safaris.

The 1994 study attempted to quantify both types of impacts in terms of lost tourism and recreation revenue and the results are shown in Figure 4.3 along with the estimated annual impact in 2009 dollars. As shown, these losses totalled almost $30 million as of 1994, which is in the range of $62 million annually as of 2009.

Figure 4.3: Estimated Annual Economic Impacts Associated with Loss of Wildlife, Waterfowl and Fish Stocks Type of Impact

$ 1994

$ 2009

Annual Impacts Wildlife losses Waterfowl losses Loss of Fish Stocks Total

$1,590,000 $464,000 $45,000 $2,099,000

$3,307,200 $965,120 $93,600 $4,365,920

Capitalized Impacts Wildlife losses Waterfowl losses Loss of Fish Stocks Total

$22,810,000 $6,600,000 $643,000 $29,950,000

$47,420,352 $13,720,926 $1,336,751 $62,478,029

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Source: Study team calculations and data in the report, Golden and Area Mica Report 1994.

♌ Extremely negative visual impacts of reservoir at low water levels. When the water levels are drawn down on the Kinbasket Reservoir, the result is massive unsightly expanses of mud, stumps and shoreline debris zones. As a result, for some months of the year, the low water levels present an unsightly and unattractive view for any tourism and recreation users visiting the area. Even at high water levels the extensive shoreline and floating debris detracts from the visual appearance of the reservoir. The viewscape impacts have a devastating footprint effect that extends well beyond the dimensions of the Kinbasket Reservoir itself, negatively impacting on tourism and recreation use in the surrounding region. •

This further loss of tourism and recreation use is not easily quantified but could easily amount to more than $1 million annually for the overall region including Area A and Town of Golden.

•

For example, the loss of as few as 100 users per day during 90 days when the water level is low would translate into a loss of user-days of 9,000 annually, likely resulting in a loss of tourism and recreation revenue to the region in excess of $1 million.

Community Economic Development Creation of the Kinbasket Reservoir resulted in a reduced population base, reduced taxation base and reduced services and infrastructure for the region. The loss of forestry, tourism and recreation resources have meant reduced business opportunities for Golden and area. This, in turn, causes loss of potential taxation revenues, all of which has a negative impact on community economic development. Grants in lieu of taxes are intended as partial compensation for these taxation and business opportunity losses. However, they do not come close to compensating the community and residents of the region for the significant and ongoing losses of tax revenue, business opportunities and economic development potential for the region. Also, there seems to be inequity in financial compensation provided (via the grants in lieu of taxes) between Golden and Valemount, as the latter community receives much higher grants overall, including a Grant for Generating Facilities that Golden does not receive (although there are no generating facilities in Valemount).

Overall Economic Losses In Figure 4.4 we have summarized the overall economic losses that can be quantified, as discussed in the preceding paragraphs. Review of Economic and Environmental Impacts

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Figure 4.4: Overall Economic Losses from Creation of the Kinbasket Reservoir Type of Impact

$ 1994

$ 2009

Annual Impacts Loss of timber potential Wildlife, waterfowl, fish stocks losses Loss of other tourism-recreation revenue Total

$3,380,000 $2,099,000 $480,770 $5,959,770

$7,030,400 $4,365,920 $1,000,000 $12,396,320

Capitalized Impacts Loss of timber potential Wildlife, waterfowl, fish stocks losses Loss of other tourism-recreation revenue Loss of Big Bend Highway Total

$48,290,000 $29,950,000 $6,860,590 $6,400,000 $91,500,590

$100,443,200 $62,478,029 $14,287,000 $13,305,100 $190,513,329

Source: Study team calculations; data in Figure 2.1; data in the report, Golden and Area Mica Report 1994.

This does not take into account the economic value of other significant losses initially incurred as a result of the flooding of the Reservoir including: ♦ Timber actually lost during the flooding ♦ Poorly utilized timber during the flooding ♦ Losses resulting from disrupted transportation network ♦ Loss of biodiversity (affects flora, fauna and tourism) ♦ Loss of connectivity between adjacent national parks (affects wildlife and tourism).

SUMMARY OF ENVIRONMENTAL IMPACTS Many of the environmental impacts of the flooding of the reservoir have already been noted in connection with the economic impacts. However, it is worth reemphasizing the significance of the negative environmental impacts of the creation of the reservoir. These include the following: ♦ Loss of riparian habitat. It is estimated that approximately 500 km of stream and water body edges that supported deciduous trees and shrubs, grasses, perennial herbs and emerging vegetation (as well as considerable wildlife and birds) were flooded by the reservoir. ♦ Loss of open water sloughs and lakes encompassing approximately 400 hectares of permanent wetlands supporting emergent and sub-emergent aquatic plants were flooded by the reservoir, along with some 1100 hectares of seasonal wetlands.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Loss of approximately 28,500 hectares of forest cover of various types and ages as a result of flooding the reservoir, although a portion was harvested prior to flooding. Other types of wildlife habitat areas were also flooded including 385 hectares of dry meadows. It is important to note that all of these types of landscapes represented important habitat for a wide variety of plants, wildlife, waterfowl and fish. The loss of these areas of habitat resulted in significant losses in wildlife populations, waterfowl populations and fish. ♦ Wildlife populations in the region prior to flooding of the reservoir were significant and were estimated to include 3,000 black bear, 2,000 moose, 1,000 mountain goats, along with well over 1,000 caribou, deer and elk, among many other species. The estimated population losses of such species primarily range from 30% to 70% and in some cases smaller mammals such as beavers, mink, otters and muskrats were almost completely lost. ♦ Loss of migrant and resident waterfowl populations. Prior to flooding of the Kinbasket Reservoir it was estimated that some 600,000 migrant and 13,000 resident waterfowl made annual use of the wetland habitat within the region, along with more than 120,000 other non-game, migrant, aquatic birds. These resident and seasonal populations were largely lost to the region, resulting in significant losses to tourism and recreation. ♦ Significant fish stocks lost. Prior to flooding of the reservoir there were approximately 450 km of stream and 110 km of tributaries capable of supporting fish within the region. Fishing was popular in the original Kinbasket Lake and significant populations of Dolly Varden, Rainbow Trout, Mountain Whitefish and Ling existed in the system. So far the fisheries development programs have failed to adequately compensate for this, along with the hazards of actually fishing on the reservoir because of debris and the wind conditions.

REMEDIATION EFFORTS OF BC HYDRO BC Hydro and the province have provided some level of remediation to compensate for the negative economic and environmental impacts. BC Hydro is required to do some of this under its water use license. These are primarily as follows: ♦ Numerous environmental, habitat, fisheries and re-vegetation studies and implementation efforts in order to mitigate some of the significant environmental impacts and make the reservoir more useable potentially as a recreation resource. These are BC Hydro obligations, as specified in the

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

Columbia River Water Use Plan. However, the Columbia Wildlife Enhancement Program has focused on the Arrow Lakes and not the Kinbasket Reservoir. ♦ Debris removal and debris management on an annual basis which, while highly inadequate, in the past couple of years has amounted to a fairly significant effort. Many millions of dollars more will need to be spent to reduce the debris on and around the reservoir to an acceptable level. This is now mandated in the Columbia River Water Use Plan. ♦ Contribution of $2.3 million by BC Hydro to construction of the West Columbia Forest Road along the west side of the reservoir. However, this has been washed out in several areas and unusable for the past few years. ♦ Fish compensation program from the BC government ♦ Construction of some gravel boat launches in a few locations to provide access to the reservoir at high water (constructed originally by Evans Forest Products), although there is a lack of access at low water levels and the high water access ramps are poorly maintained. ♦ Grants in lieu of taxes. These are paid to the Columbia Shuswap Regional District to compensate for loss of lands flooded by the Revelstoke and Kinbasket Reservoirs and in 2008 totalled $978,009. A significant portion of the Kinbasket Reservoir is in Electoral Area A, which is the focus of the current study. Of this $978,009, however, only about $204,000 goes directly to Area A and the Town of Golden. This is well below the estimated annual economic losses of $12.4 million shown in Figure 4.4. It should also be noted that there appears to be an inequity between the Town of Golden and the Village of Valemount, since Valemount receives an annual grant for generating facilities of $189,517, while Golden does not. As a result of ongoing pressures from the communities in the Columbia River Valley, there have recently been stronger efforts at debris removal and management, as well as more specific plans made for a vastly improved boat launch and a recreation area at Bush Harbour. Creation and funding of the Columbia Basin Trust to provide incremental resources for community development projects in areas affected by the flooding of the reservoirs in the region is another compensation mechanism, although this is not a requirement of BC Hydro’s Water Use Licence. Rather, it arose out of the Province recognizing the significant negative impacts on the whole region of creation of the various reservoirs and the need to provide additional compensation.

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5 – CONCLUSIONS AND RECOMMENDATIONS

This study has demonstrated that the study area, which encompasses Columbia Shuswap Regional District Electoral Area A and the Town of Golden, has continued to incur significant negative economic and environmental impacts as a result of the creation of the Kinbasket Reservoir. The qualitative and quantitative information put forth in this analysis indicates that these negative impacts are and continue to be on a much larger scale than any possible positive benefits (primarily associated with outdoor recreation) of the reservoir and any compensating benefits provided to the region such as grants-in-lieu of taxes and programming initiatives of the Columbia Basin Trust. Therefore, the region needs to encourage BC Hydro and the Province to make the requisite investments in order to achieve some recreational benefits of the reservoir, as well as undertaking other initiatives that will help mitigate the significant ongoing economic losses that are occurring within the region as a result of the reservoir.

OVERALL MAGNITUDE OF NEGATIVE IMPACTS ON REGION This was examined in some detail in Chapter 2 of this document. A summary of the estimated ongoing economic losses to the region in 2009 dollars is shown in Figure 5.1. Figure 5.1: Ongoing Annual Loss of Economic Activity as a Result of Kinbasket Reservoir Type of Impact (annual losses)

$ 2009

Loss of timber potential

$7,030,400

Wildlife, waterfowl, fish stocks losses

$4,365,920

Loss of other tourism-recreation revenue

$1,000,000

Total

$12,396,320

Source: Data in Figure 2.2

These annual economic impacts are over and above the significant environmental impacts, also summarized early in Chapter 2, which include: ♦ A loss of riparian habitat ♦ Loss of wetlands and lakes

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Significant loss of forest cover of various types and ages (28,500 hectares) ♦ Significant loss of wildlife including black bear, moose, mountain goats, caribou, deer, elk and many other species ♦ Loss of migrant and resident waterfowl population ♦ Significant loss of fish stocks. In addition to these significant impacts on the natural environment, the overall landscape has been dramatically altered. While at full pondage the large lake created results in attractive viewscapes from anywhere along the shores of the reservoir, during the months when water levels are low, quite an unsightly mud flats with numerous tree stumps is the result – clearly a very inhospitable looking natural environment.

LIMITED POTENTIAL OF COMMERCIAL AND RECREATION OPPORTUNITIES The analysis of the preceding chapter has demonstrated that there is some tourism and recreational potential of the reservoir and surrounding lands, provided some significant investments are made in road access and provision of upgraded boat ramps and recreational facilities. The potential order of magnitude economic impacts of these tourism and recreation opportunities is shown in Figure 5.2. Figure 5.2: Potential Incremental Economic Impacts of Tourism and Recreation Priority Opportunities

Type of Impact (annual) Recreational boating + fishing Canoeing/kayaking activity

Direct + Indirect Impacts (2009) $550,000 $90,000

Possible tour boat operation (if successful)

$175,000

Hiking/backpacking/nature interpretation

$100,000

Heritage interpretation and expeditions

$50,000

Mountain biking

$50,000

ATVs and motorized trail bikes (if allowed)

$75,000

Backcountry skiing and snowmobiling

$70,000

Campground and day use facilities at Bush Harbour

$320,000

Upgraded recreation sites, parks, boat launches

$150,000

Small-scale roofed accommodation facilities (if permitted

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55

$2,100,000


Kinbasket Reservoir Commercial and Recreation Opportunities Study

Type of Impact (annual)

Direct + Indirect Impacts (2009)

and successfully developed/operated) Impacts of users of recreation real estate (if developed) Total

$300,000 $4,030,000

Source: Preliminary estimates by study team

These estimates, which are very preliminary, suggest that if all of the investments are made in infrastructure and facilities that are outlined in Chapter 4 of this report, annual economic impacts to the region in the range of $4 million dollars would occur. It should be noted that more than half of this potential impact is being attributed to the successful development of a few additional fairly high end back-country lodges, as well as some recreational real estate, neither of which is likely to occur for at least several years. In comparison with Figure 5.1, it is clear that these total potential impacts are still significantly less than the quantifiable ongoing annual losses of economic activity as a result of creation of the Reservoir.

SUPPORT NEEDED FOR KEY OPPORTUNITIES Realization of the economic impacts of tourism and recreation opportunities will certainly help to offset the negative impacts somewhat. However, this will only occur if the investments outlined in Chapter 4 of this report are made in the following infrastructure and facilities: ♦ Year-round upgraded road access to Bush Harbour, Esplanade Bay and other areas ♦ Provision of campground and day-use recreational facilities at Bush Harbour ♦ Upgrading of the Forestry Recreation Site at Esplanade Bay, including the boat launch there ♦ Development of boat launch, breakwater and docking facilities at Bush Harbour ♦ Development of other enhanced public recreation sites, campgrounds and boat launches in conjunction with proposals contained in the Area A Parks Plan for Columbia Shuswap Regional District ♦ Further development of hiking and interpretive trails at the upgraded recreation sites and campgrounds

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Provision of year-round road access to any possible small scale recreational real estate developments that could be considered (oriented towards low-density, rustic cottages/cabins – no condos or high-end real estate). Possible development of a weir to create a section of the reservoir that retains high water levels year round would somewhat further enhance recreational potential and might possibly be combined with an independent power project to provide revenue in order to offset development and operating costs. It should be noted, however, that even when combined with the grants-in-lieu of taxes, the potential economic benefits from the recreational and tourism activity associated with all of these infrastructure investments will still be small in comparison with the ongoing economic losses that are being incurred by the region.

ADDITIONAL OPPORTUNITIES FOR MITIGATING REGION’S ECONOMIC LOSSES In addition to enhanced recreational use of the Kinbasket Reservoir, there are several other initiatives that would help to further offset the ongoing economic losses experienced by the region as a result of the Reservoir. These initiatives include the following: ♦ Readjusting the grants-in-lieu of taxes to more fully compensate for the lost industrial tax base that is a result of the Reservoir. ♦ Making adjustments to the handling of the Columbia Treaty downstream benefits to reallocate a larger proportion of the benefits directly to the communities within the Columbia Basin, where the impacts occur, and considering the concept of possibly taxing downstream benefits or administering a resource rental fee that could be directly allocated to communities within the Basin. ♦ Adding local hire provisions to contracts tendered for studies and implementation works under the Water Licence requirement and Fish and Wildlife Compensation Programs would help to further local economic activity. ♦ Develop an expanded fish hatcheries program to enhance the recreational fishery and possibly even create a small-scale local commercial fishery. ♦ Support other initiatives that will create economic activity along the Reservoir and/or contribute to environmental preservation and enhancement.

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Kinbasket Reservoir Commercial and Recreation Opportunities Study

♦ Support education and training for students in the region to train in trades and professions that directly relate to the long-term management of the water and land base natural resources associated with the Kinbasket Reservoir. There is widespread stakeholder support for implementation of the recreational opportunities recommended in this study, along with the abovenoted additional opportunities for enhancing the region’s economy. Implementation of these various initiatives in partnership with BC Hydro and other public and private sector partners, where appropriate, will go a long way toward mitigating the economic losses to the region that have resulted from creation of the Kinbasket Reservoir, and will also help BC Hydro implement and demonstrate its “triple bottom line” approach to the development and operations of sustainable hydro resources in British Columbia.

INITIAL IMPLEMENTATION STEPS Several steps need to be followed to initiate implementation and create momentum: 1. Ensure that BC Hydro follows-through on starting construction of the boat launch at Bush Harbour in the spring of 2009. 2. Work with BC Hydro, Ministry of Forests and Ministry of Transportation to secure funds for access roads upgrading and maintenance. 3. Secure partners (e.g.- BC Hydro, Regional District, Ministry of Tourism, Sport and the Arts) and access funding for campground and day use area development at Bush Harbour. 4. Work with the Regional District and other partners to develop/upgrade other parks and recreation areas in close proximity to Kinbasket reservoir. 5. Liaise with GBRAC and private sector operators regarding the various possible commercial tourism-recreation opportunities. The critical next step to initiate the implementation process is the formation of an Implementation Committee, to move forward on the various issues and recommendations outlined in this study.

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APPENDIX A – LIST OF DOCUMENTS REVIEWED

The following documents, maps and data sources were reviewed/referred to as part of this study’s research and analysis: Columbia Basin Trust, Report to Residents, 2008 Columbia Basin Management Plan, Columbia Basin Trust Columbia River Project Water Use Plan – Monitoring Program Terms of Reference: Heritage Management Plan (Kinbasket and Revelstoke Reservoirs Archaeological Site Overview Assessment), BC Hydro, April 2007 Columbia River Project Water Use Plan: Revised for Acceptance by the Comptroller of Water Rights, BC Hydro, January 2007 Columbia River Project Water Use Plan Physical Works Terms of Reference Kinbasket & Arrow Lakes Reservoir Recreational Management Plan, BC Hydro, April 2007 Columbia River Project Water Use Plan Physical Works Terms of Reference Kinbasket and Arrow Lakes Reservoir Recreational Management Plan, BC Hydro, April 2007 Columbia River Project Water Use Plan Monitoring Program Terms of Reference, Physical Works Terms of Reference Kinbasket and Arrow Lakes Reservoirs Re-vegetation Management Plan, BC Hydro, January 2008 Columbia River Treaty Committee Valemount Report Prepared for Chairman, Columbia Treaty Committee by Mayor Jeannette Townsend, Kinbasket Research & Economic Development Committee, February, 1994 Columbia Shuswap Regional District Financial Statements, December 2007 Consultative Committee Report Bridge River Water Use Plan, BC Hydro Project Team and the Bridge River Water Use Plan Consultative Committee, September 2003 Electoral Area “A” Parks Plan Final Report, Columbia Shuswap Regional District, March 2007 Electoral Area A Park Plan South Overview Map, Columbia Shuswap Regional District, February 2007 Framework for Assessing the Regional Social and Economic Costs of Drawing Down the Williston Reservoir Below 2135 ft. Prepared for Williston Contingency Planning Advisory Group (WCPAG), by Pierce Lefebvre Consulting, March 2001 Golden Area Mica Report 1994: The effects of the Mica Dam and Kinbasket Reservoir on the Town of Golden and Area, prepared by Paul Hambruch, December 1994.

Appendix A

A-1


Golden Backcountry Recreation Access Plan (GBRAP) Prepared by the Golden Interagency Technical Committee on behalf of the Ministry of Sustainable Resource Management and the Backcountry Recreation Stakeholders of Golden, December, 2002 Golden Backcountry Recreation Access Plan, Winter Ground (Snow-Based) Recreation Access Map Golden Backcountry Recreation Access Plan, Summer Ground Recreation Access Map Mica Region Report, The Resources of the Mica Region, commissioned by the Environment and Land Use Committee, May 1973 Mica Reservoir Region Resource Study for the British Columbia Environment & Land Use Committee, Final Report, June 1974 Peace Project Water Use Plan revised for Acceptance for the Comptroller of Water Rights, BC Hydro, August 2007 Peace/Williston Fish and Wildlife Compensation Program Annual Report 2006/07, prepared by M. D. Wood and B. G. Blackman, October 2007 Peace Williston Fish and Wildlife Compensation Program Summary of Fisheries Activities 1988 – 1997, prepared by B. G. Blackman, August 2007 Regional District of Columbia-Shuswap Highway Planning Area Extension Bylaw 1977 No. 168 (Highway Planning Area No. 1), September 2003 Review of Delivered Wood Costs of Evans Forest Products Limited in Golden, prepared for the Ministry of Forests, Province of British Columbia by H&W Saunders Associates Ltd., March 1997 2008 State of the Basin Report, Columbia Basin Trust Stave River Water Use Plan (Stave Falls & Ruskin Projects) Revised for Acceptance by the Comptroller of Water Rights, December 2003 The Effects of the Mica Dam and Kinbasket Reservoir on the Economy of the Town of Golden and Area, Prepared by Paul Hambruch , December 1994 Terms of Reference for the Golden Backcountry Recreation Advisory Committee (GBRAC), December, 2005 The Columbia Unveiled, by M.J. Lorraine, Los Angeles: The Times-Mirror Press, 1924 (includes historical account of the study area, including descriptions and photos of the original Kinbasket Lake and surrounding area) The Effects of the Mica Dam and Kinbasket Reservoir on the Economy of the Town of Golden and Area, December 1994 The Impacts of Hydro-Dams on Forestry in Southeastern British Columbia, Prepared for the University of British Columbia by Gerard Szaraz, April 1981 Town of Golden Annual Report, 2007 Water License Requirements Kinbasket Reservoir Debris Management Program, prepared for Golden & Valemount by BC Hydro, November 2008

Appendix A

A-2


APPENDIX B – LIST OF PERSONS CONTACTED / INTERVIEWED

An important part of the research and consultation process for this study is a series of one-onone interviews (in person or by telephone) with a cross-section of stakeholders in the region, for their views and perspectives on commercial and recreation opportunities, as well as with officials from BC Hydro, seeking out additional information of relevance to our analysis. The following individuals have been interviewed for their perspectives on the project and/or to seek out relevant information and data: ♦ Susan Abbott, Parks and Recreation, Columbia Shuswap Regional District ♦ Bernie Aeuvelman, Area Forest Manager, Louisiana Pacific ♦ Grant Arlt, Golden District Rod & Gun Club ♦ Kelly Bushman, Vice President, Golden Snowmobile Trails Society ♦ Rick Chatraw, Owner/Operator, Kinbasket Lake Resort ♦ Joan Dolinsky, President, Wildsight ♦ Bruce Fairly, Golden Outdoor Recreation Association ♦ Paul Fuez, Co-Jen Camp Society, Esplanade Bay ♦ Bob Gammer, Community Relations, Northern BC, BC Hydro ♦ Ken Gibson, Provincial Recreation Officer, Ministry of Forests ♦ Kindy Gosal, Columbia Basin Trust ♦ Barret Leftwich, Causeway Island Camp ♦ Tahl Lunoch, Area Superintendent, Louisiana Pacific ♦ Bill Jones, Golden Area Rod and Gun Club ♦ Rob Miller, General Manager, Golden Area Initiatives ♦ Darcy Monchak, Planning Officer, Integrated Land Management Bureau ♦ Eric Oddy, Bush Hollow Lodge ♦ Ron Oszust, Rural Golden (Electoral Area A) ♦ Dan Pecora, Golden ATV Club ♦ Hal Porter, Golden Snowmobile Club, Golden Snowmobile Trails Society ♦ Randy Priest, Chair, Golden Area Initiatives

Appendix B

B-1


♦ Arlene Shwetz, Community Relations, Lower Mainland, BC Hydro ♦ Phil Taylor, CAO, Town of Golden ♦ Jennifer Walker-Larsen, Stakeholder Engagement advisor, BC Hydro ♦ Warren Ward, Water Use Plan, Concerned Citizen ♦ Jon Wilsgard, Corporate Services Manager, Town of Golden ♦ Ellen Zimmerman, Program Manager, Wildsight

Appendix B

B-2


Appendix B

B-3


APPENDIX C – STAKEHOLDERS WORKSHOP

Attendees at Stakeholders Workshop – Golden, November 22, 2008 ♦ Susan Abbott, Parks and Recreation, Columbia Shuswap Regional District ♦ Grant Arlt, Golden District Rod & Gun Club ♦ Wayne Clark, Kicking Horse Culture, Civic Centre ♦ Irv Graham, Alpine Meadows Lodge / Golden Museum ♦ Katherine Hamilton, Columbia Basin Trust ♦ Josh Krynski, Mica Heli Guides Ltd. ♦ Barret Leftwich, Causeway Island Camp ♦ Marvin Lloyd, Golden Outdoor Recreation Association ♦ Mac Magnusson, Town of Golden ♦ Miro Micovsky, Tourism Golden ♦ Rob Miller, General Manager, Golden Area Initiatives ♦ Darcy Monchak, Integrated Land Management Bureau ♦ Les Margetak, Chatter Creek Mountain Lodges ♦ Tom Muir, Cot-Gen Camp Society ♦ Ron Oszust, Rural Golden (Electoral Area A) ♦ Dan Pecora, Golden ATV Club ♦ Randy Priest, Golden Area Initiatives ♦ Phil Taylor, Town of Golden ♦ Aman Virk, Mayor, Town of Golden ♦ Warren Ward, Water Use Plan, Concerned Citizen ♦ Ellen Zimmerman, Wildsight

Appendix C

C-1


KINBASKET RESERVOIR COMMERCIAL AND RECREATION OPPORTUNITIES STUDY DISCUSSION GUIDE FOR BREAKOUT GROUPS November 21, 2008

DISCUSSION OUTLINE 1.

What are the most realistic commercial and recreation opportunities in each of the four categories: water-based; land-based; built infrastructure/facilities; and forestry?

Short term (1-2 years)

Medium term (3-5 years)

Long term (6-10 years)

2.

For each of the key opportunities identified, what are the principal limitations and constraints?

3.

What public and/or private sector investments are required to realize the key opportunities you have identified?

4.

What are the key sources of financial and in-kind resources and partnerships needed to make these investments and implement the opportunities?

THANK YOU FOR YOUR HELPFUL INPUT!

Appendix C

C-2


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