Thursday, January 5, 2006

Ac-Custom-ed To The Perk


The things you find in old Council minutes when you really weren't looking for them and did not even suspect they existed. Here's an example from December 13, 2004:

"That the appointment of Judge Carl Zalev (retired) as arbitrator pursuant to the notice of arbitration delivered by MDC Madison Developments Ltd. regarding the Park N Go Garage BE APPROVED; and
That Mr. Clifford Sutts, Q.C., BE AUTHORIZED to advise MDC’s counsel accordingly."

I wonder what happened in the arbitration and why something could not be worked out to salvage what turned into a Receivership due to "operational issues" that the Mayor identified on Face-to-Face.

The taxpayers of Windsor will have lost up to $3 million or so by the time the Park N Go garage near the Tunnel is finally sold off. But that will not be our only pay-out by the time this is done.

I learned that City taxpayers are most generous people too.

I was told that the City of Windsor (or perhaps it is the Windsor Tunnel Commision) arranged for Federal Customs employees to park at the garage for free 24/7, 365 days a year. As many as 50-60 spots are involved. In fact, I was told that while the garage was being constructed, the City arranged for Customs staff parking at other locations garages.

Presumably the City is so generous because we own the Windsor half of the Detroit/Windsor Tunnel although it does not follow why we should have to arrange for Customs Officers parking.

I obviously do not know all of the gory details about the deal or whether the City or Tunnel Commission pays an amount or if spaces are set aside for the officers. I believe that the monthly rates at the garage are $70 per spot. If the Customs officers paid for parking, it would mean that they would pay out annually around $40-50,000 in total.

If the City or Tunnel Commission paid out this amount to the garage (or even if the spots were "reserved" so they could not be rented out to the public), it's not a big amount in a City budget of several hundred million dollars. It's enough however to buy a few Tylenol tablets for seniors or to pay for a Science Centre for kids.

GARAGE UPDATE

I noticed in yesterday's paper that the Receiver is looking for an Expression of Interest to purchase the garage. It will be fascinating to see if the City will make a bid to buy the garage in the hopes of salvaging some of the taxpayers' $3 million investment.

I remember what Mr. Mady's lawyer said in the Star:
  • "But if the city is waiting in the wings to snap up the property at fire sale prices, it is taking a risk, McNevin said. "There will be other interested parties who also may come forward ... and the city might get outdone and ultimately take a hit on its $3 million. That's a dangerous strategy, in my view."

And if the City does take over the garage and Mady's company has to pay on its $500,000 guarantee to the Credit Union as the Star reported, it will be interesting to see what would happen next given the bitterness between the parties.

No comments: