The chairman of Invest North Bay, Dave Mendicino says that as of Dec 31st 2020, the organization had a surplus of approximately $800,000.
He made the statement following the group's annual general meeting last Tuesday.
Mendicino says once the corporation is wound up, city council will decide on the reallocation of the remaining surplus. "I would support these funds being directed to other economic development initiatives," he told BayToday.
Unlike last year's ZOOM meeting when part of the meeting was open to journalists, but they were not allowed to ask questions, this year's meeting was completely closed.
"We're not a local board, right. So we're just conducting business. It was an exception last year but we're not required to."
Mendicino says the remaining members, including himself, Mayor Al McDonald, Councillor Marcus Tignanelli and City CAO David Euler are continuing the process of winding down. There is no longer any representation by the private sector.
It had previously recommended to council, and it agreed, not to renew the operating agreement which ends next month but instead create an economic advisory board headed by the mayor.
"We are continuing that process to wind up Invest North Bay so what we did was we heard from our auditor about financial statements and we approved them."
Mendicino promises they will be posted soon.
"We reduced the board to four members. If you are creating an economic advisory board that is separate from the (INB) board, right. You just can't stop meeting as Invest North Bay you still have to wind up the corporation. Our main priority is to do that."
No new business was conducted said Mendicino.
"What's left in the windup? Well, there's still surplus funds and there are still some things that need to be dealt with."
Solving a dispute with TWG Communications over payment for a marketing plan that was later abandoned by INB is part of the winding down process says Mendicino.
A statement issued by the Invest North Bay board a year ago gave no reason for breaking the two-year contract, but results were disappointing and the effort failed to attract new businesses to the city. TWG has continued to bill INB and the dispute over the remainder of the $1.2 million contract continues.
Mendicino is reluctant to discuss details of the dispute, saying only that "The TWG issue is part of winding up the corporation, that's all I can say there."
With the board down to four members, meetings will only be called as required, so it appears the complaint by Nicole Peltier and Kevin Ferris about a conflict of interest regarding the TWG contract and Mayor Al McDonald and former Chair and Canadore President George Burton won't see the light of day.
See: Invest North Bay participating in a 'cover-up' charges Ferris
Ferris and Peltier claimed in a letter to the INB board that McDonald and Burton broke Invest North Bay's own conflict of interest policy when they voted to give a $1.2 million dollar marketing contract to TWG Communications, which has extensive relationships with the two, without declaring a conflict. The issue was put on the agenda but never discussed by board members.
"It seems they are choosing to sweep this all under the rug instead of addressing the issue before them," Ferris told BayToday. "The Board's own policy clearly spells this out and what constitutes a conflict of interest and perceived conflict of interest."
Mendicino disputes that.
"Complaints and other personal matters pertaining to individuals who serve on the board are addressed in-camera and remain confidential," he said in an emailed statement.
"Invest North Bay was established as a municipal development corporation pursuant to the Municipal Act and is not a local board in the opinion of the City's Integrity Commissioner. Further to that, a complaint made to the City's closed meeting investigator resulted in the conclusion that Invest North Bay is not a local board for the purposes of the open meeting rule. As a result, the investigation was terminated due to a lack of jurisdiction."
Meanwhile, Ferris and Peltier have filed a Freedom of Information request asking for documents pertaining to the awarding of the TWG contract.
BayToday previously emailed TWG partner Bill Ferguson but received no reply.
