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Kincardine gives approval, in principle, for new Economic Development Corporation By Liz Dadson |
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Kincardine council has given approval, in principle, to the establishment of the Penetangore Regional Economic Development Corporation, plus $100,000 in start-up funding. In committee-of-the-whole Wednesday night (May 18), Jim Prenger told council that the group was slated to be incorporated the next day (May 19). Joining him on the board of directors are Allan Ribbink, Robert Cottrill, Guy Anderson, and Linda Bowers. In addition to the start-up funding, the corporation is asking that councillor Ron Coristine be appointed as an advisor to the board as he is council's economic development policy chairman. In his presentation, Prenger said the new corporation will play a lead role and serve as a focal point to grow new and existing enterprise in the Kincardine area; diversify the economy and create high-quality sustainable jobs; and leverage its business development model and partnership development programs to build on the unique geographical, intellectual and business strengths of the area. The corporation is designed to establish itself as a not-for-profit business entity to access a variety of available public sector funds for the purpose of generating business development opportunities, said Prenger. It replaces the former Economic Development Committee. The group's draft business plan indicates ways to develop public-private partnerships, business retention and expansion programs, and business acceleration programming. Prenger said the corporation would have a temporary office in the Lake Huron Learning Centre, located at 385 Queen St., in the old Westario building. Besides the board, the corporation would require an executive director, administrative assistant, business development officer, proposal and grant officer, and legal and financial services. The $100,000 in start-up funding would pay for:
Future milestones include:
Councillor Candy Hewitt said she was still unsure of the corporation's fundamental structure and yet it wants $100,000 to get going. "I'm seriously missing Step 1," she said. "I'd like to see how the responsibilities and duties roll out. I need more information. We have a lot of 'maybes' and 'ifs' here." Prenger said the group is in the process of laying out the balance of its business plan. "We know, generally, how things will play out." Coristine said the idea is to have the corporation operate separate from the municipality. "We said goodbye to the EDC committee and told this group to go forth and do good work. Our relationship with them in the future could be spelled out in a contractual agreement. "If we want this to move forward, we have to take the first step. That will help get the business community behind this corporation and then the corporation can attract money from that business community." Councillor Randy Roppel asked where council would get the $100,000.
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Later, it was suggested the money come from the Ward 1 Industrial Development Fund which is a reserve fund into which the proceeds from land sales went to pay for more industrial land. It currently contains about $1-million. Deputy mayor Anne Eadie said the $100,000 would be an investment in Kincardine, which would generate future revenue and assets for the municipality. "Instead of getting us three to five per cent interest, with grant money the corporation could get us 50-cent dollars, and ultimately 100-per-cent funding," she said. "That's a pretty good investment." She said the corporation is also going to take on the mammoth project of trying to bring natural gas to the Kincardine area. "We would be providing money to bridge the gap until other sources of funding are available. It will pay off in the future for our municipality." "Success will breed more success," agreed councillor Kenneth Craig. "This group consists of people from our own community - that's the best option for this corporation. I support the idea; and I'm confident in the Economic Development Corporation." Councillor Jacqueline Faubert said she was struggling with the concept of allowing the corporation to operate at arm's-length from council but giving it $100,000 of taxpayers' money. "I see that the corporation can work better without municipal interference, but we have to be accountable for that money." Chief administrative officer John deRosenroll suggested an ad hoc committee be set up to hammer out a contract with the corporation. "I
love the idea (of an Economic Development Corporation)," said Hewitt,
"and this is a great group of people. I see how it would run and then
we'd just stay out of the way. But I'm concerned about the basic
structure. What are our financial options?" According to deRosenroll, council could take the money from the Ward 1 development reserve, or re-open the 2011 budget or reallocate money from a financial reserve in the budget. He said the best option would be to take the funds from the reserve fund which would not impact the tax rate. Councillor Mike Leggett said if council is going to dictate how the corporation looks and operates, it should go back to the original Economic Development Committee. "Let this group go and leave it alone," he said. "The track record for economic development in the Municipality of Kincardine has been lousy. It's hard to give up $100,000, but it'll bring money back to the community." Council agreed to set up an ad hoc committee, consisting of Eadie, Faubert and Leggett, with Coristine (policy chairman) and the corporation, to negotiate an agreement between the corporation and the municipality. That agreement would come back to council for final approval. It was also agreed, in principle, to support the new corporation and give it $100,000 in start-up funding. Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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