Commercial and Industrial Lands Lease Term Engagement
Extending Lease Terms from 15 to 99 Years on 6.37 hectares (15.75 acres) Parcel
Communication Information for Cheam First Nation Members
PROPONENT
Cheam Enterprises Inc. (CEI) is the economic development arm of Cheam First Nation. It serves as a business entity created to manage the Nation’s commercial ventures, land investments, and partnerships while generating revenue to support community growth and self-sufficiency.
Key Details About Cheam Enterprises Inc.
- Purpose & Role
- Manages Cheam’s business investments (e.g., real estate, agriculture, and partnerships).
- Generates profit to fund community programs (housing, education, healthcare, cultural preservation).
- Helps reduce reliance on government funding by creating sustainable income streams.
How It Relates to Leasing (99-Year vs. 15-Year)
If Cheam Enterprises Inc. is negotiating leases, longer terms (99 years) could:
✔ Attract larger investors (e.g., real estate developers, infrastructure funds).
✔ Secure better financing terms (lower interest rates, bigger projects).
✔ Ensure stable, multi-generational revenue for Cheam.
WHERE?
SUMMARY
The Proponent has approached Cheam First Nation with a strategic opportunity to unlock the full economic potential of 6.37 hectares (15.75 acres) of Commercial and Industrial lands by lengthening lease terms from 15 years to 99 years.
This change will:
✔ Increase land value – Long-term leases make the land more attractive to investors, businesses, and developers.
✔ Improve financing options – Banks and investors require longer lease terms for major projects.
✔ Reduce administrative pressure – Avoid frequent community votes for leases over 15 years.
✔ Enhance negotiation power – Secure better partnerships with businesses and developers.
✔ Support future flexibility – Whether for the Cheam Travel Centre or other developments, longer leases give the Band more options for building meaningful & revenue-generating opportunities
WHY EXTEND TO 99 YEARS?
Below is an example of how a Bank or Financial Institution would structure financing
99-year lease vs 15-year lease
| Component | 99-Year Lease Advantage | 15-Year Lease Challenge |
| Loan Tenor | 30+ years (matches lease) | Max 10-15 years (higher payments) |
| Interest Rate | Prime + 1-2% (lower cost) | Prime + 4-5% (higher risk) |
| Equity Requirement | 20-30% (developer invests more) | 40-50% (harder to attract partners) |
| Project Scale | $100M+ (e.g., residential, industrial) | <$20M (smaller, temporary builds) |
POTENTIAL USES FOR THE 6.37 hectares (15.75 acres) PARCEL
- Industrial & logistics hubs
- Retail & commercial spaces
- Mixed-use developments
- Future community-driven projects
This change does not lock Cheam into one project—it simply provides flexibility for economic growth.
NEXT STEPS & MEMBER ENGAGEMENT
- Townhall Meeting: July 2nd – Presentation & Q&A.
- Submit Feedback via email to [email protected]
- More Engagement to be announced based on feedback
IMPORTANT DATES
- June 17th: Info packages sent
- July 2nd : Townhall meeting
- July 15th Feedback period
KEY MESSAGE TO MEMBERS
“This is about enabling long-term control and economic opportunities—not just one project. A 99-year lease term gives Cheam more flexibility, better deals, and stronger economic growth potential for generations.”
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