Chris Schnurr
Carol Kosowan LL.B., B.A. (Law), B.A. (Policy)
You know, I have to ask this question. Why is it I have to read the Detroit Free Press, the Detroit News, the Globe and Mail, the New York Times, and later this week, the Toronto Star, to find out what is going on in Windsor? Tonight’s blog is focusing on two stories – the GM closure and the Detroit-Windsor tunnel deal.
And as a result of my reading, I have some very serious questions for our ten councillors who, either apparently paralyzed by fear or simple inaction, allow it to continue.
City offered General Motors free land
The Windsor Star reported that Mayor Eddie Francis was working with union leaders, and “provincial cabinet ministers” to help save the GM plant:
“There was some hope we would be able to find a product and convince GM it was worthy of investment in this plant,” he said. “A lot of us were involved prior to this and tried to secure that product…It is another sign of the struggles manufacturing is experiencing, not only in Windsor, but throughout North America.”
I’m glad to see that the Mayor no longer believes that the problems facing Windsor are cyclical.
But what did the Mayor do exactly to try and secure a new GM product? What is it that the city had to offer?
Well courtesy of the New York Times, the city of Windsor offered “free land”:
The city of Windsor offered G.M. free land in a suburban area and the province of Ontario was prepared to give financial incentives for a new plant, but Mr. Hargrove said that was not enough to overcome other logistical obstacles.
What I don’t understand is why this was kept a secret? Why wouldn’t Mayor Francis use this as a real example of attempting to save the auto-industry in Windsor? What’s the big deal? This, at the very least was something tangible, rather than the non-existent $100-million, yet to be negotiated, economic investment fund.
But I”m curious – is this free land at the Windsor airport? And if so, what good would this “free land” be when there are no direct connections to the border, since Mayor Francis is opposed to having international trucks on the EC ROW and is opposed to having the Lauzon Parkway expanded until after the new access road to the 401 is built?
Was this one of the two developments at the airport that Mayor Francis alluded to during the council meeting last week?
If this “suburban” land is indeed at the airport and Mayor Francis was working with our two cabinet ministers – with whom he had a secret meeting with about “border issues” – is there a pending deal with the province regarding the EC ROW and its short to mid-term use as an alternative border route? Afterall, Greenlink or the Parkway won’t be constructed until after 2015; for an airport location to work effectively, EC ROW would have to be considered.
But I’m confused.
How could the city offer “free land” to General Motors when Section 106 of the Municipal Act states that a municipality “shall not assist directly or indirectly any manufacturing business or other industrial or commercial enterprise” by “giving or lending any property of the municipality, including money?”
(Note: To clarify, as with any piece of legislation, exceptions may be made. If the airport is designated as a community improvement plan area, then incentives can be offered. However, when I wrote this last evening, I could not determine from the city’s website if the airport was indeed designated as such.)
Perhaps our councillors could explain this to the Windsor Star to clear up any misconceptions that the New York Times may or may not have caused.
Tunnel deal in jeopardy? Detroit councillors unconvinced
City lawyer Clifford Sutts assured residents during a meeting of council last year that information pertaining to both the Detroit-Windsor Tunnel and the Windsor Airport would be available to the public.
Except Windsor City Councillors, according to Councillor Marra, “have been asked to refrain from commenting until the negotiations are complete” (Windsor Star, April 18th, 2008).
However, Detroit City Councillors are free to comment on the proposed Detroit-Windsor tunnel deal, according to the Detroit Free Press.
And their comments have me exceptionally worried.
The City of Detroit is seeking $75-million from the City of Windsor. At first it was for Windsor to operate the Detroit side of the tunnel, but now it appears, a Detroit tunnel authority will be created to operate the Detroit side:
Under the proposed tunnel deal, Detroit and Windsor would permanently hand over their halves of the tunnel to separate, public authorities.
The Ontario government would lend $75 million to a public Detroit Tunnel Authority, which would give $65 million to the City of Detroit and use the rest for insurance and transaction costs.
But Detroit Councillors have some reservations:
“It just goes against my instincts that we even go down this road,” Councilwoman Sheila Cockrel said, referring to uncertainty about the terms of the deal from Windsor and the city’s liability…It’s counterintuitive to start a transaction like this but not understand the financing.”
Another councillor was equally concerned, along with the Council President:
“I would suggest to my colleagues that we not go along with this kind of juggling,” said Councilwoman Barbara-Rose Collins. “I think that’s a very bad way to budget and run your household.”
“What will happen next budget year?” Council President Pro Tem Monica Conyers asked Adams about the possibility of a shortfall. “What will we sell off then?”
The Detroit News reported that Councilwoman Barbara-Rose Collins asked, “What are you going to do to balance the budget next year? Sell Hart Plaza?
Excellent questions – too bad we can’t find out by our city councillors, who appear to have lost any remaining backbone in their bodies.
But the Detroit councillors’ comments have me wondering…what exactly does Windsor get out of this deal? The facts as reported:
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Detroit will set up it’s own tunnel authority to operate the tunnel jointly with Windsor
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The Ontario government will lend the Detroit tunnel authority $75-million (poor Dwight Duncan – good luck explaining that one to Ontario municipalities).
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The Detroit Tunnel Authority will lend the money to the City of Detroit
Now the questions:
- If Detroit is using Ontario government money to balance their budget this year, how can the Ontario government be assured that the Detroit Tunnel Authority will be able to start repaying it next year, considering Tunnel traffic volumes have fallen 52% since 1999?
- Alinda will continue to operate the tunnel until 2020 – so how will Detroit pay back the loan without the ability to collect tolls or the City of Detroit to balance their budget next year?
- What exactly does Windsor gain from this transaction? What are the benefits? What are the risks? What exactly is, if any, Windsor’s financial liability?
- If Detroit councillors can ask questions publicly regarding this deal, why can’t our own? Better yet, why do councillors agree to be to gagged?
- Why isn’t the Windsor Star investigating this issue?
Frankly, I’m disgusted over the lack of public consultation regarding this so-called “deal.”
I hesitate to even call it that considering we have been provided next to no information with the full co-operation of our 10 city councillors who are more interested in talking about flower boxes and fencing than in either disclosing or demanding the details of this scheme.
Filed under: Uncategorized
Chris says:
I hesitate to even call it that considering we have been provided next to no information with the full co-operation of our 10 city councillors who are more interested in talking about flower boxes and fencing than in either disclosing or demanding the details of this scheme.
I say:
Chris you are comparing applies to oranges. I don’t see councillors more interested in “flower boxes and fencing” than “disclosing or demanding” details of the tunnel deal. The green city – clean city initiative is great and is a start, something easy that can have immediate impact. It’s simple and easy. THEN… you have a tunnel deal that consists of a lot of technical and legal aspects too it – something that takes time. As to how you can compare one issue to another is irrelevant – each issue is important to this city.
Chris says:
How could the city offer “free land” to General Motors when Section 106 of the Municipal Act states that a municipality “shall not assist directly or indirectly any manufacturing business or other industrial or commercial enterprise” by “giving or lending any property of the municipality, including money?”
I say:
I pulled out my book on the Municipal Act and it states:
106 (3) Exception: Subsection (1) [which you referred to] does not apply to a council exercising its authority under subsection 28 (6), (7) or (7.2) of the Planning Act or under section 365.1 of this Act. 2002.
Section 28:
Powers of council re land
(6) For the purpose of carrying out a community improvement plan that has come into effect, the municipality may,
(a) construct, repair, rehabilitate or improve buildings on land acquired or held by it in the community improvement project area in conformity with the community improvement plan, and sell, lease or otherwise dispose of any such buildings and the land appurtenant thereto;
(b) sell, lease or otherwise dispose of any land acquired or held by it in the community improvement project area to any person or governmental authority for use in conformity with the community improvement plan. R.S.O. 1990, c. P.13, s. 28 (6); 2001, c. 17, s. 7 (6).
Chris, that is how the city can offer free land to GM. If it is a CIP area then the city has a bit more leeway in what it can do with land. Do not miss lead others thinking there is no way cities can dispose, sell or lease land. Hopefully that helps with your “confusion”. Thanks :)
The irony of the GM closure in Windsor, is that the Ontario government has doled out $235 million to the big three for NEW jobs in Ontario but didn’t protect OLD jobs! And in today’s Globe and Mail, GM is asking for MORE money from Ontario!
GM lobbies for more money
http://www.reportonbusiness.com/servlet/story/RTGAM.20080514.wgm14/BNStory/Business/home
“TORONTO — General Motors of Canada Ltd. is seeking a fresh infusion of government funding for new projects in Ontario, even as it slashes 2,300 jobs at two other operations in the province.
GM is planning to invest about $700-million in its engine plant in St. Catharines, where it will make a six-speed, rear-wheel drive transmission, and in new projects at its research and development centre in Oshawa. The company is asking the federal and Ontario governments to kick in about 20 per cent of the total cost of the projects, David Paterson, vice-president of corporate and environmental affairs for GM Canada, confirmed yesterday.”
This insanity of bilking the tax payers of this city and the province has to stop! They’re dying companies…..Let them die! Talk about Corporate Welfare BUMS! It’s time to give them the BUMS RUSH! Our panhandlers on the streets have more integrity than these companies and more need!
I would loved to have seen how Eddie would have worked that land swap/give away of land deal, considering it is illegal under the Municipal Act. Obfuscation, confusion, incamera for sure, and oh the spin!
And on the Tunnel deal, I think that you Chris and other bloggers, should some how make this a provincial front page story! The citizens of this city and of the province must know how their tax payer’s dollars are being used to bail out a foreign city! Seriously this information and backroom deal must become a provincial and national story!
In the history of this city, the city of Detroit HAS NEVER DONE ONE THING FOR WINDSOR. That city is a loser!! But we with the inferiority complex always attach ourselves to them. But. I do admire the openness of their city council, their freedom of information and their newspapers for reporting WASN’T, ISN’T BEING DONE IN WINDSOR!
I wouldn’t call it a ‘deal’ either. I wouldn’t call it a ‘transaction’. What kind of secret agenda are we looking at here? Has the tunnel been valued as a business? Is there a business case for the City of Windsor owning the whole thing (is there a case for us owning ANY of it?).
What is the reason King Eddie wants to spend $75 million? What return do we get on our money? What advantages, even if non-monetary, will we receive?
Bur, more importantly……………………………….
WHY IS EVERYTHING A BIG SECRET?
Councillors, the people who voted you in and pay your salaries want to know, and know now, BEFORE you make any decisions.
Yes Windsorcitizen -
We hear all about the details of a $1.9 million flower box and tree planting plan, and nothing about the tunnel deal, with our councillors silenced, unlike our detroit counterparts.
Thats the point.
Thanks for sharing.
Thanks Windsorcitizen –
You are quite knowledgeable. Perhaps you could point out where exactly YQG is designated as a CIP? I looked for that. If you can find it I will more than happily post it. After all, I’m simply asking questions as a resident trying to make sense out of all of this.
Furthermore, I did not intentionally mislead anyone. I presume that people are intelligent enough, as you have done, to click on the links I have provided, whereby exceptions to the above stated are highlighted.
And with all respect, it is the duty of Mayor and council to publicly discuss these items, so as there is NO misconception. I shouldn’t have to read a tidbit in the New York times which only provides a piece of the information.
As another commentator wrote here, why does everything have to be so secret?
Furthermore, you know as well as I do, how is anyone going to convince our Mayor to upgrade EC ROW to attract GM to the airport? That’s why he never talked about it, because he has been opposed to it.
Do me a favour, pull out your statute book and tell me which statute the province will use to upload EC Row to expand it to attract a GM plant or its equivalent?