As a former chairman of the Squamish Oceanfront Development Corporation (SODC) it was great to see the information being covered by the Feb. 5 article, “Squamish has to deal with $11M in Oceanfront debt,” by Jennifer Thuncher.
A few points in her article I would like to highlight are:
For people to understand this you have to be aware of the three parties involved. The SODC as she said is a municipal corporation that operates separately from the District of Squamish (DOS). The mayor and council (not the DOS) operate as the sole shareholder for the SODC. The District of Squamish is the issuing body for permits and services as well as how process is managed.
The debt for the SODC is and was negotiated by the SODC and supported for a maximum of $9 million by the District of Squamish in the form of a loan guarantee. The decisions to spend the funds ($11.4 million) were made by SODC with accountability to the shareholder in order to prepare the land for a sales transaction. Brownfield sites are unique and pricey to prepare for sale. The result of those costs and the vision for the land are reflected in the document called the Sub Area Plan.
The decision by Squamish District mayor and council on Oct. 9, 2013 was to relieve our board of its obligations and take over the transaction of the land and handle it internally within the District of Squamish. That included selecting the purchaser and taking over the negotiations.
We, the old SODC board, were well on our way to fulfilling our transaction obligations for the land for a purchase fee of $20M and completing the transaction date within the two-year time given to us by the mayor and council of the day. Since that day in October of 2013, all the costs and negotiations and consultants hired have been directed by the DOS, which now is facing calls on the loan amounts.
Despite the concern expressed in the article by Joanne Greenlees, DOS general manager of financial services, that the loan guarantee amounts are hindering the district’s ability to borrow, my point is that it is all within its control. This is a great project for Squamish and having $11 million of debt on a $20 million sale isn’t so fearful if they get on with the transaction of the land and get some tax revenue from the site.
If Ms. Greenlees wants to solve her borrowing problem, she should put the pressure on the district’s negotiating team to get it done. That was the pressure when I was the chair. It is 2015 now so it’s time to pen the deal and clear the debt on the SODC and move on with the Sub Area Plan. The shareholder in 2013 moved our board out of the way to get the transaction done in a timely manner. When is time up?
Bill McNeney
Squamish
