It's Time For The Mayor To Come Clean

Poor Kwame Kilpatrick. Some claim that the nasty people from the Bridge Co. are trying to take advantage of him because he needs a few dollars for his budgetary woes. But would these same people sing a different tune if a “public” body wanted to do a deal with him at this time of Mayoral vulnerability? Would that be OK?

A source yesterday confirmed to me some of the story behind the goings on about the Tunnel. Obviously, the complete story is not yet out.

I was told that several months ago the Windsor Mayor sought and was given permission by Windsor Council, again in camera, to approach the Mayor of Detroit to buy Detroit's interest in the Tunnel. I had heard rumours about this some time ago. I was told then that our Mayor was “giddy” with excitement as he talked about the proposed deal. I assume our Mayor must have known about Detroit’s financial problems too at that time so that would help him get a deal or was he doing this merely as a charitable act to help a neighbour? (and we know that the Star has made it clear what it thinks about the City and charities).

Obviously, this would be huge expenditure on the part of the City and one that demands the question answered about whether the City should be in the border crossing business at all. We have already had the start of the discussion about whether the City should sell the Tunnel among its other assets.

How could Windsor possibly finance this? It could not on its own. Presumably the City would partner with a financing source to buy and then lease the Tunnel for say, 99 years. That fact alone scares me after MFP and Canderel. Windsor seems incapable of doing sophisticated financial transactions.

And here is how the infamous Agenda Item #5 could fit in. It was the way “public” approval could have been given, as I guessed, without us being any wiser. It was the authority to the Mayor and Council to do what they wanted with a blank taxpayer cheque.

Remember also the strange language used in that Item, the use of the word “fund” instead of “pay for.”

• “City Council, at its discretion, may fund new roadway capacity projects deemed necessary which would solve urgent problems being created by border traffic.
  

Interestingly, here is how Macquarie talked about their role in the Detroit & Canada Tunnel Corporation.

• “In January 2001, the owners of DCTC agreed to sell their shares to Macquarie North American Infrastructure Inc. (a wholly owned subsidiary of the Global Infrastructure Fund (GIF)). The acquisition of DCTC was funded by $US53.5 million of senior debt supplied by WestLB, subordinate debt originally supplied by Macquarie Bank Limited, and equity provided by GIF.”

Macquarie could be the finance choice again. David McFadden of Gowling and Henderson is “Chair of the Board of the Detroit and Canada Tunnel Corporation ... and Deputy Chair of the Board of Macquarie Canadian Infrastructure Management Limited.” He is also the partner of environmental law guru David Estrin who is retained by the City on the border fiasco.

But then remember the survey poll that I told you about that asked the persons being surveyed about whether he/she is in a labour union or teachers federation. Check out the OMERS deal just announced with a Quebec union that the Globe and Mail said was a Teacher’s Union. Or their relationship with the OTPP, a teachers’ pension plan. Interestingly, Gowlings also did work for Borealis Capital in the past.

It is time for Eddie to come clean and tell us what is really going on. It is our City, after all, and our pocket-books. I would draw to your attention what happened in Chicago on their lease deal and consider how they handled the process.

One should remember as well…it is our future relationship with Detroit that is at stake too!