CA must try again to handle debt

City council has decided the North Bay-Mattawa Conservation Authority must try again to come up with a financial restructuring plan to handle its $5.44 million debt.

The authority formed a new committee at its monthly meeting Wednesday night to handle the task,based on council's decision.

Authority board chairman Marc Charron, secretary-manager Brian Tayler and board member Dave Mendicino were appointed to the committee.

Financial mess
Council had voted to guarantee a $3.2 million bank loan the authority had taken out and directed it to sell the upper chalet at Vincent Massey School and the neighbouring $3 million interpretive centre to try to clear up the financial mess it was in.

The chalet was sold to the Near North District School Board, which had also been negotiating for the interpretive centre.

But the second deal fell through and the authority sent a letter to council stating there were now no buyers for the centre, starting speculation the city would have to assume payment of the authority loan.

“Council has decided as a whole that we’re nowhere near that state yet,” Mendicino said following last night’s meeting.

“We are not prepared to assume that debt because we believe there’s still work to be done at this end as far as a work-out plan to resolve a lot of this debt.”

The restructuring committee must return with a new plan before the end of August.

On a shoestring
Tayler said the authority has already included loan payments in its 2004 budget, passed in February.

He added while the authority’s core services have been protected, “we’re operating on a shoestring.”

Mendicino hopes an upturn is on the horizon.

“We sent out a request for proposals for a third party to run the ski hill for the upcoming season and we’ve gotten good response to it,” Mendicino said.

“City council also has a lot of faith in the new chair. He’s got a lot of energy and ideas, and we’re hoping this new committee that has been struck will soon come back to us with a work-out plan for the debt.”

Forced to leave
Another bit of authority business remains, Mendicino added: appointing a replacement on the board for Coun. Sarah Campbell.

At Monday night’s council meeting Campbell announced her resignation from the board, stating she’d been “forced” to leave because she hadn’t been invited to a meeting involving Jack Pine Hill.

“I was denied the ability to protect the asset under discussion by the mayor’s office of economic development, with all my personal liability on the line,” Campbell told council while announcing her resignation.

Plates are full
Mendicino said it was “unfortunate” Campbell “chose” to resign, but added a replacement will be sought most likely from the general public.

Another councillor could be chosen, but Mendicino said it was unlikely since “their plates are all full.”

A replacement is expected to be appointed by mid-July.