This if the fourth part in a series.   To read part one, click here.  To  read part 2, click here, to read  part three, click  here.

 

 

In examining  the Commonwealth Health Corp and the Commonwealth Campuses Corp dealings with the federal government through the Community Adjustment fund (under the Western Diversification Fund) both companies have to be linked, in order to get a true picture of how the financing occurred and how the Federal Government and the Northern Development Initiatives Trust developed and administered loans to these firms.

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        On July 22^nd-2009 Commonwealth Health Corp. received approval for a non bearing interest loan from the Community Adjustment fund in the sum of $1 million dollars.

 

On September 25^th-2009 at a special meeting of the Northern Development Initiative Trust (held via teleconference) before Board Chair Bruce Sutherland:

 

According to the minutes of the meeting, that meeting started at 4:15 pm and ended at 4:35 pm. While we know who took part in that conference call, how they voted  was not available under section 16.

 

According to a Briefing Note from NDI Trust CEO Janine North  one of the “conditions precedent” for loaning the money would be as follows  “Northern Development Initiative Trust will enter into a terms sheet for a loan agreement with 0861221BC Ltd (Commonwealth Campuses Corp) for up to (blanked out) with the fully demolished and environmentally remediated vacant block to ‘commercial standards’”

To date, only one building has been demolished, that being the one located at the southwest corner of 4^th and George Streets.

 

Commonwealth Campus and Commonwealth Health Corp now had approval for loans of up to, $9,887,500.

All comprising of taxpayers’ funds, $ 8,887.500 from the sale of BC Rail, subsequently turned over to the Northern Trust and a further $1 million in federal government money.

 

The $1 million handed over in a non interest bearing loan for five years, was broken down as follows:

Commonwealth Health Medical centre renovation and conversion $923,077.00, the new Down Town overall project management including planning, design and engineering, $76,923.00.

 

Commonwealth Medical Centre is described in a project scope by Northern Trust as a key catalyst project for , “the New Downtown” despite the fact that the former  Chances Gaming Centre  had been built in 2007-2008. It was the newest building in down town Prince George, was being offered at fire sale price and was being courted by a number of interested parties.

 

The  CAF application  outlined the  Commonwealth Health project as follows:

  

In prepared brochure by Commonwealth in their submission, they, show by artists drawing, what they propose.

 

In the program and information and project application guidelines. “Retail operations will not normally be supported under the CAF” 

 

 

 

In schedule B of the revitalization Tax exemption document to be presented to City Council by Commonwealth Health (which allows the company to receive a tax exemption), it clearly shows that four areas will be set aside for retail, areas  A-B-C-D.

 

 

 

The Northern Development Initiatives Trust, who handled the application for the funding from the Community Adjustment fund, scored the application very high, giving it  66 out of 70 possible points 

  

 

The application process does provide for  a check of performance indicators, namely the number of businesses created, actual jobs created or maintained, but there is nothing to indicate what, if any, consequences there are  should those performance indicators not be met.

 

It is important to note that in the end,  Commonwealth Campus did not acquire all of the $8.8 million funds it was approved  to get  from the Northern Trust.

 

Commonwealth Health is committed to a covenant to build a number of town houses on that part of the Gaming Centre property which  is at present a parking lot. They have a further two years to comply.

 

To date the only space that is spoken for is a section of the second floor, which will be occupied by Stats Canada during the census. What other agreements have been reached it is not known.