The headline and first paragraph in the Windsor Star were:
- Private Sector Announcement
Federal Transport Minister Lawrence Cannon is expected to reveal Monday Ottawa will back construction of a link between Ontario's major transportation artery, Highway 401 and the U.S. interstate highway system at the congested Windsor-Detroit border.
- Ottawa to announce highway plans involving private sector
Conference on public-private partnerships to hear plans for Windsor-Detroit link
OTTAWA -- The federal government is poised to announce plans for an highway megaproject at Canada's busiest border crossing that will include full private-sector involvement in its design, financing, construction and operation, The Vancouver Sun has learned.
Frankly, my first reaction when reading the Star story was that the Bridge Co. had won. After reading it a couple of times and knowing what the conference was about, I figured out what it meant. And then found the Sun story to confirm my suspicions. Cannon was NOT supporting an Ambassador Bridge victory but advocating for a P3, a public-private partnership. Note the word "ownership" was NOT used in the Sun story.
But the story will mislead most people here and work up the West End activists and politicos into an anti-Bridge Co. frenzy. Was that deliberate?
Naturally when the real story comes out, the Star will say that the approach makes great sense ie Government ownership run by a private sector company.
Can't our Senior Levels get along with each other either. First it was Ontario's Minister Cansfield (along with her underling Mr. Salmons) telling us that it was going to be a public bridge and no private parties. They scooped everyone. Now Federal Minister Cannon is telling us that it will be a P3, one-upping them.
I guess there really was no purpose in DRIC if these ad hoc remarks can be made by each Government without, it seems, the others knowing about it. I wonder what the Americans must be thinking although Michigan cannot say much after the Governor's actions. We can now see more clearly that DRIC was nothing more than a stall to the Bridge Co.'s plans and to provide a justification to do what the decision-makers wanted to do anyway.
We all know that the Ontario Government wanted to own the new crossing---Cansfield's magazine article statement a few months ago and Steve Salmon's slip the other day told us that. It appears as if the Feds are saying that they will own it and that private enterprise will finance, build and operate it. That's a kick in the you know where to the Province.
What do all of these permutations mean? How about this as a theory...pure speculation of course.
Eddie and the Province worked together to pressure the Feds into a P3 since the Province does not have the money. Just yesterday the quotes about the Province's financial position were not good:
- "Ontario's newly elected mayors were probably hoping for a warmer welcome, but Premier Dalton McGuinty had little more than a warning yesterday: don't bother asking for any more money -- the province has fiscal problems of its own.
With election-night victories still fresh, McGuinty sent a clear message that while he understands municipalities are hurting, the province is also strapped for cash and that they should take their begging bowls to Ottawa."
Cannon's speech on Monday will be confirmation that there will be a P3, a public-private partnership. Of course, Eddie's close friends in Ottawa, Brian and Joe, have been feeding him political intelligence so Eddie had a good idea what was going on.
Eddie now has had enough of the Provincial Liberals. They have served his purpose by helping him pressure the Feds. He has his own political aspirations and his own agenda. Ergo the attacks on the Province and especially Sandra and a little spank to Dwight. He won't be upset at Ottawa's ownership. In fact, it fits into what he wants (If you think I am kidding, who provided a box for the Tigers baseball game at Eddie's big Mayor's conference. None other that a Federal Government rep in Detroit!)
Now we can also understand the money spent by DRTP on the "Green Solution." It had nothing to do with a border crossing or linking to the bridge. It was nothing more than an advertising campaign, a brand management exercise to re-invent DRTP as a kinder, gentler project. Or rather, to allow OMERS/Borealis to climb out of the shadows. It was given away in Henderson's column again: "[Francis] thinks the Zalev scrapyard, the city's biggest eyesore and a major environmental concern, could become a rails-to-trails starting point." DRTP was not selling their project but "Rails to trails." Just take a look at their banner on the rail overpass at Dougall near the South Windsor art gallery. Interestingly, it talks about stopping at the riverfront!
OMERS will get its money back on the wasted DRTP project by selling its corridor to the City as part of a huge brownfields redevelopment project at the Zalev plant by which the entire corridor and scrapyard will become green. It is a variation of what Schwartz said. There will be a massive new development at Zalev, blocks from the OMERS owned Devonshire Mall. I know someone Eddie can call in as needed with the Zalev negotiations too. He has helped Eddie out before in tough situations.
There will be Government grants for this project (It will fall under rail rationalization, brings in the bleeding airport, brownfields redevelopment and infrastructure). But there will still be the need for a massive amount of private investment. Who has the pool of money required---pension plans.
Oh my goodness....the need for a public-private partnership using pension plan funds! Exactly what OMERS does
Here's the deal:
- Estrin will spend City money to stall off the Ambassador Bridge enhancement project in both the US and Canada on litigation re appeals re the EA process in both countries. After all, the Bridge is the "enemy!"
- Watch for the City to partner with OMERS/Borealis to offer to run the new border crossing as the "private enterprise" partner ("Sole Source" deal so no tenders need go out if the Fed rules are the same as the City's. Eddie can do a deal with whomever he wants under the Purchasing by-law which he had amended after he took office since it allows P3 sole source deals).
- The City-owned Detroit-Windsor Tunnel will be thrown into this too. May as well make it the complete deal.
- I would not be surprised to see the Duty-Free shop operator being part as well as part of the consortium since they know how to sell to consumers.
- It would not surprise me to see the operations sub-contracted out as well to....a new entity who has a border operator involved
- This would all be run as a huge SW Ontario Public Authority including Sarnia and Niagara/Fort Erie
- There would be the talk of massive new developments in Windsor guided by the new head of the Economic Development Commission in locations determined by him.
Why the City you ask, what can it contribute---the City is a border operator didn't you know. A lousy one mind you, but a border operator who "knows" the Windsor market. And OMERS/Borealis is involved with the PEI bridge. True experience and as close to "public" as possible
So we have the complete package of "design, financing, construction and operation."
Why do you think that Eddie is looking for a manager for the Tunnel now and not 2 years ago? The Tunnel cost is cheap too now that it has been driven into the ground financially over the past few years. Why was there the big push to partner with Detroit? And the piece de resistance, the icing on the cake: the private consultant, Remo Mancini, the new recently-appointed Economic Development Chair.
The only dilemma for Eddie---can he do it within a year! No wonder Halberstadt is floating the trial ballons about working together with the Senior Levels! Eddie will graciously give in to Gord's good buddy!
Geeeez, if Eddie makes nice with the Harper Conservatives, maybe he will run for them instead and Alan can run for Mayor!
No comments:
Post a Comment