BIRDTAIL SIOUX FIRST NATION — “Green Roof” First Nation might be more apropos for this reserve, in the aboriginal tradition of naming people and places after physical traits.
Driving around the reserve, there’s one shiny green tin roof after another — 54 new roofs in total.
The CN railway line runs through the Birdtail Sioux First Nation in western Manitoba. The band council has plans to build a railway spur onto the line as part of an economic partnership. (TIM SMITH/BRANDON SUN)
It’s one of the reasons Chief Ken Chalmers gets called “Indian agent” by some chiefs, and why he’s been accused, as he put it, of “sucking up to Canada.”
To get the roofs, Chalmers did something that may be unique in Canada. He accessed Canada’s Economic Action Plan funding for a reserve, Birdtail Sioux First Nation. The federal government agreed to his plan to replace the roofs, windows and doors of 54 reserve homes. But government would only reimburse the First Nation. Birdtail Sioux had to pay the $2.5 million cost up front.
“But no First Nation has $2.5 million,” said Chalmers.
So he approached M & L Contracting in Winnipeg. Chalmers has made it a priority to build trust and goodwill with the business community during his decade-long tenure. M & L agreed, did the work, and Ottawa paid the bill.
Is it progressive, or is Birdtail too closely tied to government and industry?
That’s just a small part of the story. Birdtail Sioux has embarked on a venture with CN Rail and oil companies to become an oil distribution centre. The agreement is for the First Nation to pick up oil from drill sites using tanker trucks — it’s a 45-minute drive north from Virden — then deliver it to a loading platform on its reserve, then load the oil into tanker cars on a CN Rail spur line.
Strive Energy, of Calgary, has an agreement with Birdtail Sioux to build an eight-kilometre spur line — a short track off the main line used for loading and unloading cars — on the reserve. CN Rail will then pick up the cars and deliver the oil to destinations across North America.
Even with new pipelines installed in Western Canada, there isn’t capacity to carry all the oil. Pipelines limit oil delivery to those markets on the pipeline, whereas rail can transport oil to any destination and hit spot markets.
The loading terminal could be up and running by next year. The project, plus Birdtail’s gaming centre opening soon in nearby Foxwarren, is expected to double the First Nation’s revenues. It receives just under $5 million annually from the federal government.
“It’s fun when you’re having fun,” said Chalmers, getting into his vehicle to give the Free Press a tour.
Chalmers, 53, smiles frequently and has a naturally sunny disposition. He’s a big booster of people on the reserve, building individuals up to great heights before introducing them.
He has an interesting background. He’s actually an army brat, born in Germany. His father was Scottish and his mother Siouan. The family returned to Canada shortly after his birth, and moved from base to base. His sister, Angela, won a bronze medal for Canada in the 3,000 metres at the Barcelona Olympics in 1992.
His father died at 47 and his mother moved back to the reserve and became a councillor. Ken was already grown up by then and attending university. He fell a few credits short of obtaining a degree in psychology and took a job in the public health office at the Birdtail reserve before running for council. On the reserve, he’s regarded as a bit of a political independent because he doesn’t have a family clan living on the reserve.
When he took over as chief 10 years ago, Birdtail Sioux hadn’t had a new home built in 25 years. It was in co-management and $6 million in debt.
The First Nation finally climbed out of co-management two months ago. At the same time, it built 35 new homes in the past decade. (Birdtail is a small reserve with an on-reserve population of 500, and off-reserve population of 300.) As for home renovations, in addition to the new roofs, up to 50 homes are getting new kitchens and bathrooms.
The significance of that is the federal aboriginal affairs department allots funds for new homes, not home renovations. But Birdtail owns 22 properties in Brandon, Winnipeg and Portage la Prairie — its share of land holdings of the Dakota Ojibway Tribal Council that’s made up of nine bands. The mortgages on those properties are paid off and their rental revenue funds Birdtail renovations.
“We just sit here and we get our homes,” said Chalmers.
Birdtail Sioux is small but it’s a lovely, scenic parcel of land with the Assiniboine River valley and its deep ravines twisting through it. The homes are spread out from each other, like on most reserves, but placed in a huge circle, like a giant teepee ring.
It’s got the usual reserve social problems. People have a party, drink, fight, the house gets busted up or burned down. One of the recently renovated homes has already burned down in a fire blamed on drunkenness. Of the 54 homes renovated with green roofs, some already have their windows smashed and boarded up with plywood. Some doors have been smashed in, too.
As well, the unemployment rate is about 80 per cent. That’s even though the Town of Russell to the north has to bring in foreign workers to fill jobs, and in Virden, to the south, the weekly newspaper, the Virden Empire-Advance, has pages of job openings each week, stemming from the oil boom.
What has set Birdtail apart is Chalmers and the council run it like a mayor and council run a small town. They forge relationships with government and business and try to attract investment.
It’s noteworthy that Chalmers has not joined two other Sioux First Nations in the area who opted to run an illegal smoke shop southwest of Brandon that has been raided by police four times already. That’s prompted some name-calling against Chalmers. The two Sioux reserves are baiting the province into prosecuting them in order to speed up legal efforts to obtain treaty status.
Chalmers wants treaty status, too, but sees opportunities under the reserve system. For example, Birdtail will soon open a gaming centre on 10 acres of land in nearby Foxwarren that it bought and designated reserve land. As a First Nation, it keeps 90 per cent of VLT revenue, versus just 20 per cent for hotels, said Chalmers.
In its corporate relations, CN Rail and Enbridge pay the full cost for a program that serves breakfasts and lunches for all 136 students in Birdtail’s K-12 school.
Enbridge and CN Rail have also contributed to a new $1.2-million store on Birdtail. CN Rail gave $100,000 for an adult education centre building that cost $400,000. (CN Rail track runs through the reserve.) Strive Energy and the oil sector are cost-sharing a life-skills training program for Birdtail Sioux youth.
It’s being good corporate citiziens and getting corporate logos in the community but it’s also return for co-operation from Chalmers not to stage blockades of pipelines or rail lines. Chalmers also performs speaking engagements for some companies.
His results with government are also impressive. Six years ago, there was still a dirt road leading into the reserve. It’s paved now.
Birdtail has a relatively new Level 3 water treatment plant, the same standard as in cities. It also has its own school completed six years ago.
Chalmers fought to get Birdtail’s own school. In 40 years that Birdtail Sioux kids were bused to a school in Birtle, just four of its children graduated from high school. This year, four Birdtail students are expected to finish Grade 12 and eight students are expected to graduate next year.
The oil-loading terminal is slated to be built on reserve land that has been rezoned for commercial use, like an industrial park, a manoeuvre that can be done under the Indian Act with permission. With that designation, private investment is 100 per cent protected.
That’s why Calgary-based Strive Energy is willing to invest about $10 million to pay for the track and loading facility, in the first phase of the project. The band maintains 51 per cent ownership. Strive Energy will fund the project and Birdtail will pay it back from proceeds, said Greg Farney, Strive Energy president and CEO.
That provides significant tax advantages for the company. For example, materials to build the terminal will not be subject to provincial sales tax or goods and services tax, a 12 per cent saving, said Robert Throop, the band’s financial administrator. On a $10-million project, that saves the company $1.2 million.
The oil terminal is guaranteed to create at least six permanent jobs and will create temporary construction jobs. Another company entering a partnership with Birdtail Sioux is Fort Calgary Resources, which includes oil exploration on the reserve.
Chalmers said companies can also avoid payroll and shipping taxes by operating from the reserve.
“It’s an advantage Canada has given us (First Nations) to get into business,” Chalmers said.
