Council for the District of Squamish passed a motion Tuesday (July 17) to extend another line of credit the Squamish Oceanfront Development Corporation (SODC), this one worth $2.8 million. But members were far from unanimous.
The decision left three councillors frustrated over the need for so much money - and why now?
"The timing just seems really, really strange," said Coun. Mike Jenson.
"They still have a lot of money in their bank account, why do they need more right now?"
The mortgage was passed by council in a 4-3 vote on Tuesday (July 17), bringing the total borrowed by the SODC to $5.8 million. Councillors Jenson, Greg Gardner, and Corinne Lonsdale - the same three councillors who voted against the SODC's memorandum of understanding with Qualex last October - opposed the motion, which was brought before council by SODC CEO Mike Chin.
According to Chin the mortgage - pre-authorized by Pacific Western Bank dependent on council's approval - takes the SODC's total cash flow to the amount needed for the entire master planning process."Having these finances on hand will allow us to be on the same footing as the other property owners [Westmana and BCR Properties] on the peninsula," said Chin.
The master plan, when complete will cover the land uses allowed on all three properties, and council was told that in order to work with the other developers the SODC needs to show financial stability.
"Why do we need all the money in place for the master plan, when we don't yet have a master planner?" asked Gardner. "We as a council need to have a direction first before I could authorize this. What the [SODC] board of directors are saying to me is that they don't even have a clear mandate from this council."
As well, the SODC's financial statements won't be made public until July 31, noted Jenson after the meeting. These statements will explain how much has been spent by the SODC to date, and how the money has been used.
"There are things we should be looking at first said Jenson."However, Mayor Ian Sutherland said that the district is obligated to authorize the 2.8 million mortgage sooner or later and doing it now is simply a sign of confidence in the board.
"If we don't trust the board with our finances, why do we have them?" queried Sutherland. "I give staff my trust."This is a line of credit, it doesn't have an affect on our bottom line or our borrowing power."
"It does effect our assets though," said Lonsdale, adding "$2.8 million is not a vote of confidence. It's a lot of money."
Councillors Raj Kahlon, Patricia Heintzman and Jeff Mackenzie all sided with Sutherland, arguing that the mortgage is necessary at this time to help create confidence in the SODC.
"I'd like to remind everyone that, this council did actually support the agreement last fall, and it was the partner that pulled out," said Heintzman.
"But because of what happened the banks are just nervous that given the history there may be problems. This just gives the bank some certainty. We're saying lets open the doors [to development]."
Prior to the vote, the debate was abruptly ended by Mayor Ian Sutherland, who said that each councillor had spoken to issue twice and that was sufficient.
Lonsdale debated the decision.
"I'm really curious how you determine what rules we're going to follow Mr. Mayor," said Lonsdale.
"On the last issue we went around four times for questions and that was fine. Now you change it. It's not municipal rules, it's not Roberts Rules. You say we dealt with the issue and that's it. You can do that, you are the chair."
