City of Prince Rupert (bancrupt, imminent?)


#1

“The City of Prince Rupert will once again be heading to court over Watson Island, but this time it is Watson Island Development Corporation (WatCo) that has filed suit against the city.”

thenorthernview.com/news/252798101.html


#2

So Watson Island Development Corp is there when no one else was willing to step in, they paid all the expenses, paid the legal fees for the Sun Wave fiasco so we as tax payers didn’t and now in the final hour (obviously) some other group or groups have come in to put in an offer that is probably larger than theirs. Our city council got greedy instead of making the deal which was completed and now we as tax payers are going to have to pay the price again and again and again!

So mad, just let WatCo finish what they started, we may have gotten more money in the end but in the end it will cost us more and I don’t want to pay more.

When are the next elections?


#3

[quote=“Northbynorthwest”]

So mad, just let WatCo finish what they started, we may have gotten more money in the end but in the end it will cost us more and I don’t want to pay more.

When are the next elections?[/quote]

Hold on a second. There are a couple of other active threads that are discussing the concern of many residents over a proposed tax increase and the need to find other ways to generate revenue. Now I’m not aware of the particulars of any agreement with Watco but one thing that I have learned in my 50+ years on earth is that there is always 2 sides to every story. Another thing I know is that it is imperative that out current Council get the absolute best bang for their buck with Watson Island. I wouldn’t want the city to screw Watco over any more than you do but let’s find out the details and the other side of the story and hope that it’s actually our Council being responsible.


#4

So they use WatCo for a couple of years, get them to pay the freight, pay all the legal bills so you and I didn’t have to and string this along until they got some other interest and throw that WatCo to the curb. I’m fairly sure they have an agreement with someone else for more money and that would be a good thing if we would actually see it but we are going to have to fight a prolonged legal battle again for what two years? Three years? Supreme Court of BC does not act fast and during that time who is going to pay the $100,000 a month maintenance?

Yes two sides, on the one side WatCo has agreed to the city’s shifting goal lines, on the other side the city is confident that they have done everything in their power to get the best deal but in the end no tax revenue, huge expenses and legal fees and they have a deal already in place!

I don’t want to get into an argument with you, I just want this settled and believe me this will not be settled for years and where will we be at?

Tired, very tired of our little island from hell!


#5

thought they paid for the land allready


#6

While this is quite concerning and certainly makes our city officials look even worse than they already do…perhaps we should wait to hear the other side…perhaps they have a deal in place with another company that is prepared to offer them a LOT more cash than what WatCo was going to pay…perhaps enough to offset what I am sure they will have to pay back to WatCo and still provide a net benefit to this city.

Either way, the city has some explaining to do and it better be made public, because on the service, this just does NOT look good.


#7

[quote=“bthedog”]While this is quite concerning and certainly makes our city officials look even worse than they already do…perhaps we should wait to hear the other side…perhaps they have a deal in place with another company that is prepared to offer them a LOT more cash than what WatCo was going to pay…perhaps enough to offset what I am sure they will have to pay back to WatCo and still provide a net benefit to this city.

Either way, the city has some explaining to do and it better be made public, because on the service, this just does NOT look good.[/quote]

Yes, exactly. There is something yet to be told. We could speculate why things have turned out this way but I’d rather wait to get more details before passing judgement. I don’t want to argue either NxNW. I just believe we shouldn’t jump to conclusions and that our elected officials owe it to us to do the absolute best that they can for the city and I’m hoping that this is the case here. Eager for more details.


#8

What has basically happened is that, since this deal was made, Watco has been scrambling to to secure more funding/the partnerships they claimed to have and, thus, dragging their feet on this deal. In the meantime, as Rupert has become a hot spot, a couple of heavy hitters (including, apparently Pattison) have stepped up with considerably richer offers than Watco’s $5 million.
So the city went "d’oh!"and is trying to kick Watco to the curb because a hotter chick came along. If Watco wins, the city will lose out on a much larger deal.

Oh, and what is with this tread’s title? It doesn’t represent the subject.


#9

[quote=“drummerboy”]What has basically happened is that, since this deal was made, Watco has been scrambling to to secure more funding/the partnerships they claimed to have and, thus, dragging their feet on this deal. In the meantime, as Rupert has become a hot spot, a couple of heavy hitters (including, apparently Pattison) have stepped up with considerably richer offers than Watco’s $5 million.
So the city went "d’oh!"and is trying to kick Watco to the curb because a hotter chick came along. If Watco wins, the city will lose out on a much larger deal.

Oh, and what is with this tread’s title? It doesn’t represent the subject.[/quote]

Wow that would suck HARD for Rupert…but what exactly would Pattison be doing with the site…not very convinced that they would be doing anything truly spectacular with that site, considering they have lots already empty around the city and they have been that way for decades.


#10

The Northern View has updated their story to include more details.

thenorthernview.com/news/252798101.html

Basically confirms the City is seeking another purchaser for the site.


#11

[quote=“bthedog”]The Northern View has updated their story to include more details.

thenorthernview.com/news/252798101.html

Basically confirms the City is seeking another purchaser for the site.[/quote]

… after accepting $2 million from Watco under an exclusivity agreement by which the City committed that it would not deal with other parties.

I read the Court filing that the Northern View article is based on and it certainly does not show the City in a very positive light.

Among other things Watco is seeking damages on the basis that the City unjustly enriched itself.They accepted money on the basis that they would sell the property once the Sunwave litigation was concluded - Watco paid some of the legal fees for that - then last month the City refused Watco’s monthly payment, presumably so that they can deal with another party contrary to the exclusivity agreement, while meanwhile keeping the $2 million it received from Watco.

Also interesting is that LaxKwalaams and Metlakatla first nations are mentioned as having been involved in the original exclusivity agreement.


#12

Wow - the city could be in some very hot water here…they owe this company 2 million it seems (and probably a sizable amount more in damages)…I wonder if that is going to come out of this years 10% tax increase or next years?


#13

This was what I was getting at yesterday, so let’s say it is Pattison & his sidekick Glen Clark who have put this deal together and let’s say they are willing to pay 5x…7x…or 10x’s WatCo’s original offer, well on paper it looks good, $25, $35 or $50 million, alright Prince Rupert, way to go city council!

The problem, if you are going to believe the one side we have heard so far (and that is important because we have only heard from one side) is that who is going to pay the legal fees like WatCo did for Prince Rupert for Sun Wave? Who is going to pay the nearly $100,000 per month in maintenance? So much for the spiffy new rescue van!

So let’s say conservatively it takes two years to settle in court, no out of court settlement (which I think is likely unless WatCo thinks they got a case and want the Island period). So that costs us $2-3 million and opportunity lost in tax revenue and the $5.7 million that would have been in the bank. The settlement might eat up everything the J Pat and G Clark have offered, where are we then?


#14