TERRACE MAYOR Dave Pernarowski says the city could yet make some kind of financial contribution to the efforts by a local group to buy the Shames Mountain ski development.
And determining broad-based public support for a financial contribution might come by holding a referendum at the same time as the November municipal elections, he said.
Pernarowski spoke following the defeat by a 4-3 margin of a motion at council Aug. 8 to provide the My Mountain Co-op group with $200,000 through a combination of available city monies augmented by borrowing. It’s trying to raise $2 million to buy the Shames Mountain Ski Corporation and has $400,000 so far.
Although Pernarowski did suggest the city might make a financial contribution of one kind or another, he did vote against providing $200,000 and remains convinced he made the right decision.
“There was a feeling out there that if we put this money in now, what if next year they came back because they needed money to pay staff. Would we put more in? There would be the danger we would become financier to My Mountain Co-op,” he said.
“In the end whether it would have been using the city’s surplus or reserves or borrowing, it would all be taxpayers’ money. And it would not be the most appropriate thing to do with taxpayers’ money.”
The mayor said he could understand why My Mountain Co-op supporters would be disappointed because of his vote.
“It was a tough decision for me personally and the other councillors, particularly as presented,” the mayor added of the $200,000 pledge cash and borrowing proposal.
“But I remain committed to the co-op and the city will continue to promote Shames in whatever way it can,” he said.
The idea of a referendum at the same time as the November local government elections, which was raised by councillor Brian Downie at the Aug. 8 meeting, drew a favourable comment from Pernarowski.
“It’s not a bad idea, I suppose. It would lead to a decision and Shames does have an impact on the community as a community asset,” he said.
Pernarowski also suggested the city could make a direct financial donation as a corporate sponsor.
“A proposal like that could come back to council,” he said.
The prospects of a referendum would also depend on ongoing talks between My Mountain Co-op and the Shames Mountain Ski Corporation on an agreement to operate the ski development this year and, ultimately, on a sales agreement.
Councillors Brad Pollard, Lynne Christiansen and Carol Leclerc also voted at their Aug. 8 meeting against the motion to pledge $200,000.
Terrace becomes the second local government to turn down a My Mountain Co-op request for $200,000 – Prince Rupert was the first while Kitimat and the Kitimat-Stikine regional district have yet to make a decision.
Debate leading to the defeated motion centred on whether the city would simply provide the money from its surplus or borrow all or some of it and then provide it to the co-op.
The motion to pledge $200,000 – leaving it up to city staffers to figure out where it should come from – was moved by councillor Bruce Martindale.
He called the ski hill an asset to the community and region, noting that towns he passed through on a recent holiday also had ski hills.
“This is a leadership issue,” said Martindale in adding that $200,000 was a fairly small amount of money which would have been paid out over five years.
He opposed a suggestion by councillor Brian Downie that the matter be put to a referendum at the same time of municipal elections this fall.
“I know how it works. [After a referendum on money for the ski hill], we will have to go [to referendum] again and again and again. This is a decision we can make as council,” said Martindale.
Councillor Lynne Christiansen, who seconded the pledge motion so it could then be voted upon, opposed any suggestion of taking out a loan for the co-op.
She noted that council had earlier that evening agreed to spend $284,000 to demolish the former Terrace Co-op building, leaving it in a position that it would have to borrow if it wanted to help out the My Mountain Co-op plan.
“It’s a really tough one because I see us spending $200,000 if others put money in. I see it’s real important but we just spent $284,000 to tear down the Co-op. I can’t entertain the idea of a loan for this,” she said.
Councillor Bruce Bidgood said he supported providing the money because having a ski hill in the area was a quality of life issue.
The motion to pledge money came after council first debated and then withdrew a first recommendation to consider a variety of ways to provide the $200,000 whether by a straight grant, borrowing the money or a combination.
Pollard said he could simply not support providing money to the co-op, noting that in the end, any combination of $200,000 would work out to be taxpayers’ money.
Leclerc said any decision should not be based on emotion.
Mayor Dave Pernarowski explored the idea of providing the money through a combination of city surplus and borrowing.
Pernarowski had city finance director Ron Bowles confirm that the city had up to $100,000 of the provincial grant left after agreeing earlier in the evening to demolish the Terrace Co-op building.
Owners of the Shames Mountain Ski Corporation have been trying to sell for years, saying they’ve been putting their own money into the venture.
My Mountain Co-op and the ski corporation have been discussing an agreement whereby the co-op could operate the mountain this coming winter.