Canadian Tire rejected city council’s demand of a $200,000 non-refundable deposit for its proposed project, so city hall will attempt to convince the company to continue forward with a new agreement.
During its April 13 regular meeting, council passed an amended motion to pursue a revival and amending agreement with Canadian Tire Real Estate Limited subject to payment of a $200,000 non-refundable deposit. The original agreement would have given the company a one-year project extension and extra time to pay deposits totalling $250,000.
Canadian Tire wants to purchase 4.78 hectares (11.95 acres) of land on the exhibition grounds for $3.17 million.
In a letter to city hall on April 16, the company’s commercial real estate manager rejected the amendment and demand for the deposit.
Council decision
During its April 27 regular meeting, council voted 5-2 to have the city clerk and mayor pursue the original revival and amending agreement with Canadian Tire, without the non-refundable deposit.
In favour were Mayor Fraser Tolmie and councillors Dawn Luhning, Chris Warren, Scott McMann and Crystal Froese. Opposed were councillors Heather Eby and Brian Swanson.
Swanson called a point of order by noting this was simply another attempt to reconsider the original April 13 motion. However, city clerk/solicitor Myron Gulka-Tiechko replied that amended motion attempted to counter Canadian Tire’s request to extend the agreement by forcing it to pay the deposit. This motion was the original one.
Council discussion
Mayor Fraser Tolmie, who introduced the motion, explained residents have asked why the community doesn’t have certain businesses or why they have to travel elsewhere to pick up items. They have also allegedly asked him when council plans to attract businesses instead of turning them away.
Residents’ lives have been turned upside down by the coronavirus pandemic, while their jobs and educational chances are in doubt, he continued. Yet, it’s positive that the provincial government plans to lift restrictions soon to allow forward progress.
“But forward to where, though? Where is the City of Moose Jaw going if its council kills opportunities?” Tolmie said.
Residents will need jobs when this pandemic is over, but there won’t be any if there are no opportunities. People will question what their community leaders did to create jobs, he added, and whether they ensured the municipality could succeed.
Canadian Tire has been here for more than 20 years, is a great community partner, and wants to grow, said Froese. It wants to put the project on hold due to the pandemic and has asked for support.
“This is about collaboration and looking forward to the future, for sure,” she added.
Claim of anti-business untrue
The claim that councillors who voted for the April 13 motion are anti-business and anti-economic development is untrue, Eby said, adding she is not either of those and is offended by those accusations.
“This was a vote for me based on the merits of the deal,” she continued. While some have claimed council added the non-refundable deposit at the last minute, she pointed out Canadian Tire wanted an extension at the last minute and did not indicate it would even sign the deal.
Although Canadian Tire rejected the non-refundable deposit, it still wants to work with council, said Warren. City administration has worked hard on this project and talks with the company show that.
“It was and still is disappointing that we wanted to do this to a good corporate citizen,” he continued, adding an agreement for a project worth $25 million doesn’t happen overnight.
Doubtful project will proceed
“I think it’s a stretch to say council has killed this deal,” said McMann.
McMann doubted the project would proceed, especially since it has been four years, and the retail sector likely won’t be able to support this in the future. Furthermore, he thought it was a twisted claim that the $200,000 killed the project.
A two-inch-thick sheaf of papers on this issue has accumulated since 2016, said Swanson while holding up the documentation. He, too, was offended by the implication that he was anti-business for supporting the deposit.
Failure to attract businesses
Instead, he believed doing deals like this was the reason businesses don’t come here. He pointed to Carpere Canada, the Southeast Industrial Park and property on Diefenbaker Drive as areas where council failed to attract business.
“There is a clear record and that it’s we don’t do a very good job on our end,” Swanson continued.
It’s false that city council changed the original agreement at the last minute since it expired on April 13 anyway, he pointed out. Council wouldn’t have received any money from Canadian Tire when the agreement expired.
City administration should have given a report saying the deal had expired, but instead, someone at city hall negotiated a new agreement without authorization, said Swanson. Canadian Tire has put $250,000 into its trust accounts as part of the agreement, while council has kept this land off the market for four years.
“Non-refundable deposits are a normal part of business … ,” he added. “There should be some attempt to recoup costs for the city. That’s good business.”
The next regular council meeting is May 11.
