By Gagandeep Ghuman
Published: April. 13, 2013
A whopping $9 million SODC debt hangs like the sword of Damocles over our collective heads.
And as the first installment of $3 million approaches next year, the sword lowers a wee bit more to needle us.
But if the council and SODC movers and shakers don’t want the community to be martyrs of that debt, we better hear within this year about the ‘world-wide interest’ in our Oceanfront jewel.
A canyon separates the best case scenario from the worst.
In the best case scenario, a developer comes, swoops up the land, the debt is paid off, and we live on the tax revenue spoils for years to come.
In the worst case scenario, the taxpayers are on the hook for millions of dollars in debt.
And a bourgeoning SODC debt can affect the district borrowing capacity, which is crucial to fund capital projects.
With SODC loan structure, the district needs to pay three million for the payment in 2014, another three million in 2015, and then five million the following year.
The amount a municipality can borrow is tied to its ability to pay. A maximum of 25 per cent of the revenues can be used to service debt.
Add the SODC debt re-payments to what the district needs to pay annually, and it exceeds the 25 per cent minimum.
The district is allowed to borrow almost $90 million, of which it has already borrowed $32.5 million, not including SODC debt.
“When we have to come up with that money, it really eats into our borrowing power,” says Joanna Greenlees, the district chief financial officer.
Such calculations don’t seem to worry Coun. Doug Race too much.
Race says the money was borrowed on the strength of land value, the belief that the value of land far exceeds the debt.
The debt would be retired from the sale of land, he says.
In the event there is no sale, the district can use money from land sale or refinance the debt over a longer period of time.
Meantime, SODC manager Jonathan Silcock said it would take a few months before there will be any news to share on SODC.
The latest financial statements would be available sometime in June or July this year, he said.
The marketing push by SODC is generating worldwide interest in our Oceanfront site, the district’s arm length corporation said in a press release in March.
“We are very pleased with the level of interest in the Oceanfront project,” said Bill McNeney, chair of the SODC Board.
Jean says
Did the SODC Board ask “Disney” to possible partner with us… that would create permanent Jobs not just ” Bedroom Sea to Sky polluters”
TCee says
More smoke and mirrors, and overall secrecy or lack of transparency. Poor Squamish taxpayers – on the hook again. And what happens if the Gondola goes belly-up? Who absorbs that debt? What other debts is Squamish on the hook for, now and in the future? It would be nice to know.
Nate Dolha says
TCee, the Gondola is private money, with no exposure to the taxpayer…
Nate Dolha says
Further to that, here are the District financials. Worth a read:
http://squamish.ca/yourgovernment/financial-statements-and-annual-reports/
larry mclennan says
Lets see, 9 million divided by about 6000 households- that’s $500 per household. What is the value of the SODC lands? Why don’t we put them up for auction and see what offers come in. Ad could read: Land package for sale- only cost the current owner $9 million over the last 10 years. Large amount of pollution & remedial work required. Subject to liquefaction around perimeter.
$2 OBO.
larry mclennan says
Oops, I notice that my comment reads $500- missed a key- should be $1500
donny says
Yes it’s all smoke and mirrors , and we’re on the hook for the debt only because of poor negotiating with BNS , who were smart enough to see that without cashflow to service the debt , BNS cosied up to the front door of the Municipal vault. I thought , foolishly, that the Municipality sold some land for $8million and was going to reduce the BNS debt, so what happened to that money?
Unless there is some deal not revealed to the innocent tax payers , the gondola project is a private adventure , and nothing to do with the taxpayers. IS’NT IT??????
Storm says
If they had just seeded it with grass a few years ago at least it wld be more like a park for the community to use while they fiddle about for another 20years. Cld even generate some revenue by renting pads to food trucks or something….
TJ says
Without it there is NO reason for visitors to come to downtown Squamish and spend time and money. The Howe Sound is GORGEOUS and yet you hardly see any boats. Those views are amazing and wouldn’t it be nice to be able to sit and have lunch or dinner looking out at those views, or spend the day at the beach with the family, or go for a nice walk and not have to wear welly boots because of the mud and puddles. Most locals don’t even spend much time downtown so why would visitors. Squamish NEEDS this development to go in!