Council Decides To Offer Canadian Tire A New No Cash Down Deal

In a seeming reversal of a decision they made two weeks ago Council has decided to offer Canadian Tire a new deal for a proposed Thatcher Drive East retail development.

But unlike the deal where the City had previously offered a $200,000 non-refundable deposit to hold the land for another year Council decided to offer to extend the deal with no cash down.

As approved and if Canadian Tire does proceed construction on the new store would not have to start until 2022.

This despite the fact the City has already sunk $100,000 so far into the proposal originally approved by Council in October 2016.

“This is somewhat of a setback,” city manager Jim Puffalt reported back to Council after being informed the retail giant was unintersted in paying a non-refundable $200,000 deposit to delay the deal by a year.

Under the initial deal, approved by Executive Committee just prior to the 2016 civic election, Canadian Tire had agreed to pay the City $3.78 million and the City would have spent $2 million servicing the property and compensating the Moose Jaw Exhibition Company.

Proposed site for Canadian Tire - MJ Independent file photo

Under a deal finalized in December 2019 the City would net $1 million less.

In the December 2019 deal Canadian Tire agreed to pay the City $3.1 million for 11.95 acres of land. The City then spends $2.4 million on infrastructure and compensating the Moose Jaw Exhibition Company.

This is the deal Council has now voted to offer to Canadian Tire with no money down to delay the project for one year due to economic uncertainties caused by the COVID - 19 pandemic.

Puffalt said the decision to ask for a $200,000 non-refundable deposit sent the wrong message to the community that the City was open to growth.

Speaking to Council Rob Clark CEO of the Moose Jaw and District Chamber of Commerce asked for reconsideration on the Canadian Tire decision.

Clark said Canadian Tire has been a great corporate citizen and the proposed retail project would create much needed jobs.

He said the effect of the proposed retail development would be “ten fold from what they now offer.”

The effects of COVID - 19 demanded the City do what it could to save the project, Clark said.

“This should be a time to build a stronger relationship….many municipalities wish for,” Clark said. “There is going to be some closures in the City if we don’t act…in our minds this (Canadian Tire building their proposed development) is a fast track to recovery.”

Clark said City Council could play a major role in supporting the economy in very troubled times. Some estimates have 40 - 60 percent of Canadian small businesses closing due to the economic effects of COVID - 19.

“I’m not too sure who is looking for the land. I don’t know if it is up for sale.”

Mayor Fraser Tolmie said not granting the cash free extension is just another project Moose Jaw has allowed to get away.

“I have people say to me why didn’t that business…when is our Council going to attract business instead of scaring it off?” Mayor Tolmie said.

The City needed to make sure every economic opportunity is available once the COVID - 19 pandemic passes.

“When this is over people in the community will be asking for the four letter word - jobs,” Mayor Tolmie said.

Councillor Heather Eby said her not supporting the no deposit extension had nothing to do with not supporting local business or caring about the community as the Mayor inferred.

Her supporting the $200,000 non-refundable deposit had to deal with the merits of the deal.

“I am offended as to think because of the way I voted I did not support economic development,” Councillor Eby said. “It does not mean Canadian Tire cannot buy that land at a different time.”

Councillor Chris Warren saw Canadian Tire, by asking for the extension, was a positive sign.

“To me it just demonstrates their willingness to move into our community,” Councillor Warren said. “It is a decision I feel is best forth community.”

Councillor Scott McMann said he had supported askimg for the $200,000 deposit as a means to get the retail development jumpstarted.

“I really think it is a stretch that Council has killed this deal,” Councillor McMann stated. “I don’t think it is going to go ahead. I thought putting up the $200,000 (might get the project moving) “

“I am afraid it is going to fall through again as I don’t expect the retail world is going to be able to support this type of project.”

Councillor Brian Swanson briefly sparred with Puffalt about the amount of money the City had already spent towards the project so far.

Councillor Swanson had previously submitted an enquiry asking for the amount spent but had not received a reply.

Puffalt said the enquiry had not been answered but after more debate said the City had so far spent $100,000 on their side to get the project ready.

“We have costs into this. We have held the land off of the market for four years when the market for that kind was (more valuable) than it is now,” Councillor Swanson said.

In a 5 - 2 vote with Councillors Eby and Swanson opposed Council voted in favour of offering the one year extension to Canadian Tire.