The government of P.E.I. is hoping to nail down a deal to buy out the remaining shares of the Summerside Regional Development Corporation (SRDC) in the next few weeks.
The premier’s executive council has given its approval for a financial offer to be made on the shares currently held by the Greater Summerside Chamber of Commerce and the City of Summerside. The province owns 75 per cent of SRDC, the chamber owns 10 per cent and the city owns 15 per cent.
Speaking Thursday, Economic Development Minister Heath MacDonald said the province came up with the share prices based on the market value of all the assets currently owned by the SRDC.
The minister was not, however, prepared to divulge how much the offer is worth – at least not until it is accepted by all three parties.
He did say he hopes to have a deal signed in the near future, barring some unexpected development.
“We’re finally, hopefully, getting to the finish line relatively soon,” said MacDonald.
This process started in November, 2016, when the province announced it planned to buy out the other shareholders of the SRDC and those of the Charlottetown Area Development Corporation (CADC). It has since been slowly winding the operations of both organizations down. The Journal Pioneer could not confirm before deadline Thursday whether a similar buyout offer had been made to the CADC’s shareholders.
Some of, but not all, the responsibilities of the two corporations will now be handled by the Regional Economic Advisory Councils the province recently introduced.
The main focus of SRDC, property management and development as a means to stimulate economic growth, is a business MacDonald says the province is getting out of, at least at this scale.
“Why are we even in the landlord business at all? Our focus should be on economic development,” he said.
Once the deal with the city and the chamber is confirmed and the province becomes sole owner of the SRDC’s assets, they will likely be sold off to private enterprises or integrated into a government department’s existing project.
“We’re likely moving to liquidate some of those assets once we get in there,” said MacDonald.
“There’s a few unanswered questions … but we’re moving forward.”
Both Dan Kutcher, president of the chamber, and Summerside Mayor Bill Martin said Thursday that they had not yet seen the province’s buyout offer in writing, but both had estimations of what it might include.
“I’m glad it’s wound up. I’m glad there’s a cheque coming to the city – got a pretty good idea what it’s going to be and it would be hard to argue with the province on any level,” said Martin.
Both men also said plans are afoot for what that money could be spent on, but both declined, for now, to say what those might be.
“The chamber is looking at what we can do to reinvest some of those monies here in Summerside and help grow the local economy,” said Kutcher.
Summerside Regional Development Corporation’s properties:
250 Water Street – The Holman Building
109 Water Street
268 Water Street
105 Industrial Crescent
565 Water Street
78, 80 and 82 Water Street
A small lot of land between Spinnaker’s Landing and the Silver Fox Entertainment Complex.
@JournalPMacLean
