"We can proudly walk Millennium Park and know that it is ours." -- Mayor
Stewart Alsgard
Powell River's city council remains committed to the joint venture and the
benefits that will flow to residents, said Mayor Stewart Alsgard during an
address at the June 13 council meeting.
"These benefits include economic diversity, increased assessment base,
enhanced tax revenues, opportunities for young families to realize their
potential in Powell River and, most importantly of all, the preservation of
Millennium Park for all of our future generations to enjoy," he said. "That
is why we entered into the joint venture and that is why we will follow
through with it, so we can proudly walk Millennium Park and know that it is
ours."
The city, through the Powell River Waterfront Development Corporation (PRWDC),
Tla'Amin (Sliammon) First Nation, through the Sliammon Development
Corporation (SDC), and Catalyst Papers Corporation, through a wholly owned
subsidiary have formed a limited company. Incorporated under the province's
Business Corporations Act under the name PRSC Land Developments Ltd.,
the company will oversee the sale and redevelopment of 800 acres of property
surplus to the core operation of the Powell River mill, owned by Catalyst
Paper. Millennium Park is 34 hectares of greenspace in Westview that
encompasses the Willingdon Beach Trail and the McFall Creek corridor.
City councillors adopted a series of resolutions at the council meeting
concerning the joint venture.
The first motion amended a previous motion, passed at a special in-camera
council meeting on March 1, 2004, a phrase which stated the city would
provide $50,000 to PRWDC from prior years' surplus for initial joint venture
corporation working capital.
Councillors then adopted a motion to enter into a shareholders loan
agreement with PRWDC for $51,000, with interest set at commercial rates, to
be paid back to the city in a one lump-sum payment within five years of the
signing of the agreement.
Councillor Sandi Tremblay provided a breakdown of the loan: $970 to operate
a bank account, including bank charges and incidentals; $30 for PRWDC to
purchase 30 shares in PRSC Land Developments; $50,000 for PRWDC to purchase
limited partnership units in PRSC Land Developments.
SDC would also be contributing $50,000 to purchase limited partnership units
in PRSC Land Developments, Tremblay said. Catalyst Paper would be using
timber rights equal to the value of $50,000 for the same purchase, Tremblay
added. The timber which Catalyst owns is located at various locations,
including on the Wildwood Hill and near Gibsons Beach.
Stan Westby, the city's chief administrative officer, reported he had sought
the opinion of both the city's solicitor and the Inspector of
Municipalities, who approved the city to incorporate the PRWDC, to hold
shares in the corporation and to lend it money. "A shareholders loan is not
inconsistent with Section 26.2 of the articles of the Powell River
Waterfront Development Corporation, nor is it contrary to the provisions of
the Community Charter or the Local Government Act," Westby said.
A report dated June 9 from the director of financial services, Dave Douglas,
stated that the city was going to loan PRWDC $200,000. The city's solicitors
have advised that the $150,000 difference between the shareholders loan
agreement adopted by council and the amount recommended by Douglas should be
recorded as a city asset and should be paid directly to the joint venture as
a deposit for Millennium Park, Westby said. "This will provide a binding
contract for the city to secure Millennium Park," he said.
The $200,000 is coming from the city's reserves, Westby said. Councillors
approved spending the $150,000 as a deposit for Millennium Park.
The only outstanding issues are the transfer of the lands to the development
company following the registration of the subdivision, which has been
delayed as a result of a technical difficulty.
The city plans on a signing ceremony and an open house in the future.
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