Business Changes

Business Changes

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As of January 1, 2019, the VCF is operating under two companies.

The VCF has split to two companies, the Valemount Community Forest Co. Ltd. and the Valemount Industrial Park Co. Ltd. (VIP). Both companies are Limited Partnerships with the Village of Valemount.

There are two main reasons to form two companies: liability and taxes.  It became apparent that because of the growth of the VCF Co. Ltd. there was an increasing liability and risk to the Village of Valemount. The new limited partnerships separate the Village from the business of forestry and industrial land management.

Community forests generally do not pay taxes as long the revenue from non-community forest sources does not exceed 10%.  The Valemount Industrial Park was starting to generate non-community forest income. Further industrial activity would eventually create a financial tax risk to the original VCF Co. Ltd.  Over a period of three years the Village Council, the VCF Directors, accounting firm KPMG  and Lidstone & Company Law Corporation  worked together to form the best business model to address concerns and facilitate long term growth.