The City of Cornwall is about to write a cheque for over $2 Million dollars to buy back a large chunk of its Industrial Park as Loblaws is bailing on the 121 Acre parcel in the city’s industrial park.
Was it a game of chicken with its Quebec Unions for concessions? Part of the Shoppers Deal? Or simply cold feet?
Either way Loblaws gets 90% of its cash back, some great tax write offs, and the city and tax payers are stuck with the bill.
This could be why development fees might not be such a bad thing as you could credit businesses once they achieve targets such as actually opening and/or tying tax credits to jobs created.
There will be no hundreds of new jobs for Cornwall now, but there is a legacy of expense incurred for adding infrastructure, creating roads, and the city actually buying more land during the process which they now will also carry on the books for who knows how long. Clearly the city had a hunch that this was going down and sadly our Economic Development crew failed to find another suitor such as Giant Tiger that ended up building their own new facility closer to Morrisburg.
Is it any wonder why taxes keep going up with this sort of leadership and lack of vision?
Estimates suggest that the cost to taxpayers for the extension of the roadway and other costs could related to this deal could exceed $4-6M or as much as $140 per person in the city of about 46,000.
As the city’s former CFO and now CAO, CFN asked Ms Maureen Adams (who doesn’t actually live in Cornwall) for some numbers which she has not responded to.
The bigger question is whether this will add 4-6% to tax rates for 2017?
What do you think dear CFN viewers? You can post your comments below.