B.C. municipalities are raising concerns over a proposed federal policy change that would allow First Nations bands to buy land and create satellite reserves anywhere in B.C. — even if they’re not next to their traditional territory.

A report to Metro Vancouver Wednesday warns the changes to the so-called “additions-to-reserve policy” would allow residential, commercial and industrial development in cities across B.C., resulting in the loss of land, taxes and costs associated with servicing agreements.

It could also create a “proverbial patchwork quilt” of jurisdictions, with municipalities wrangling with First Nations over bylaws and regulations on everything from fire services to house inspections.

“Under the federal proposal, there is this unrestrained ability to buy land anywhere coupled with the ability to proceed and convert it to reserve lands,” said Belcarra Mayor Ralph Drew, who sits on Metro’s aboriginal relations committee and is also the Metro representative to the Union of B.C. Municipalities aboriginal committee.

“(First Nations) don’t necessarily have to come up with the money themselves, they just need to partner with someone who has big pockets.”

The additions-to-reserve policy was developed in 1972 to allow First Nations to add land to existing reserves or to create new reserves. It had previously only allowed additions to reserves on lands next to bands’ traditional territory.

Metro, which is already facing a massive on-reserve First Nations building boom across the region, maintains it realizes the benefits economic development can bring to First Nations reserves. But the proposed changes would not only create jurisdictional headaches, mayors say, but underscore ongoing concerns over funding municipal services, especially on booming reserves..

The Squamish First Nation, for instance, could see as many as 30,000 non-aboriginals living in condos on reserve land near Park Royal, while the Kwantlen First Nation in Maple Ridge and Tsleil-Waututh in North Vancouver also plan to develop their reserve lands. But in many cases, the First Nations will pay for some services but leave local taxpayers to foot the bill for others.

Metro is also concerned the move could affect the regional growth plan, which has specified pockets for growth and development across the region.

“It doesn’t matter if it’s Maple Ridge or Surrey or wherever,” Drew said. “When these things occur, First Nations expect municipalities to provide services; they will take water, sewer and fire protection but won’t pay for libraries and recreation. Those are bones of contention now and this is only going to exacerbate it.”

Drew said he not sure why the federal government is proposing to change the policy, which would allow satellite reserves in cities like Burnaby, which has no reserves, and “turn community planning on its ear.”

It could also potentially affect the agricultural land reserve — with about 9,403 hectares, or 53 per cent, of ALR land in Delta — while local businesses may also bear the brunt of the tax-free communities.

“If they bought a large block in middle of Surrey and it’s a tax-free zone, imagine the impact on the surrounding businesses,” Drew said.