The Star Wimps Out

How wonderful, the Star Editorial Board was finally shamed into writing something about the Tunnel deal with Detroit. Finally, they make a statement when it may be that the deal is dead anyway so that whatever they say is of no import whatsoever.

So much for responsible journalism in a one newspaper city.

They seemingly would prefer to play the role of cheerleader such as with their "Believe Windsor Essex" campaign.

• "The Star and other media outlets have a responsibility to focus on positive stories -- they are out there -- instead of focusing only on the negative ones that land with a thud on the community's doorstep."

Star Editorial Board members do not want to be called small-minded now do they! After all

• "There's no room in this city for small minds"

The next thing that has to happen is that Gord Henderson will write a column praising Eddie to the heavens for being this financial genius who wanted to do the deal and, but for the whiners and naysayers, would have taken the smart Americans to the cleaners by scooping millions out of Detroit’s pockets for the good of Windsor.

Gord did write once that I can recall about the Tunnel deal, in April 2007:

• “How the heck did little old Windsor snatch a blue-chip infrastructure investment opportunity out from under the money- sniffing noses of Canada's major pension fund managers?
  
  You can bet your bottom dollar that the boards of these massive institutions, which have been pouring billions into a hot new field, longterm infrastructure investment, are asking themselves that awkward question following the revelation that Windsor has entered into a US $75-million agreement with Detroit to take full possession of the Detroit-Windsor tunnel.
  
  They'll be kicking themselves where the sun doesn't shine for not recognizing, as the City of Windsor did, a once-in-a-lifetime chance to purchase a safe and reliable revenue stream for the next century and beyond.”

No Gord, they are laughing themselves silly at the thought that someone seems serious to put Windsor taxpayers on the hook for a $75M loan to Detroit.

Now Gord knows the answer. The deal is a dog. No one is interested in the Tunnel on its own and no one in the financial community will put up any cash for this transaction. Our Mayor is stuck dealing with the Province as his last financial resort.

Of course, that loan application is now on hold, put there by the Mayor. I wonder why. I would have thought that his bargaining position would have been increased dramatically if he could dangle $75 million in the face of Detroit Council.

I really wonder if the story is that Eddie knows that Infrastructure Ontario is not going to put up the money. If that is true, the deal is deader than a dodo and even Ken Cockrel Jr. would be able to understand that.

Perhaps the Star could redeem itself by checking this out so we could know the facts. Also their reporter might ask as well what the amount of the loan requested by the Mayor is. It would be interesting to know if it was more than $75M. Finally, what does the $10M for fees and insurance represent and who gets the money.

That's called "investigative journalism."

Back to the Editorial.

As you have learned by now, dear reader, you ought to start reading Star stories, columns and Editorials from the end first. Then you will know what the real steak is and can ignore the opening sizzle. Buried at the end is this statement, what the Editorial really should have been about:

• “the business case for the city assuming control of the tunnel needs to be rock solid, made plainly in public and robustly debated before the city pulls the trigger on any deal.”

Here is what was not in the Editorial. There was no fuming about a Mayor who has still not let us in on the big secret about what this deal is really about after how many years. It keeps changing from a business transaction to keeping the Tunnel in public hands to beat the big, bad Bridge Company.

No questioning about whether what Daryl Newcombe of A-channel News said about the transaction based on the Letter of Intent in Detroit makes any financial sense for a deal by Windsor. He stated that there is an Interest-rate cap of 5.05%, which is below that charged by Infrastructure Ontario (their 40 year rate ranges between 5.62% to 5.72% already) and no liability on Detroit if they cannot repay the loan.

Actually I understand why the Star would not talk about that because they have been scooped by their competition.

No thundering about how Council has been invisible in this transaction and allowed the Mayor to run roughshod over them unlike their colleagues in Detroit who are protecting their citizens’ interest and probably ours as well indirectly.

No acknowledgment that a third crossing built by the DRIC would effectively wipe out the other crossings in this part of Ontario even though they have finally stated what you, dear reader, already know from reading this BLOG:

• “Traffic has been declining at the tunnel for a decade and is predicted to decline further -- between 20 and 26 per cent -- upon construction of a third border crossing in the city's west end.
  
  The strong Canadian dollar and the real and perceived thickening of the border do not bode well for increased tourism over the next few years,”

No admission based on these numbers and the reduction in truck volume that there is no need for another crossing at this time or at the least questioning the assumptions being made.

But there is continued Star promotion of “public” crossings.

It must be hard being an Editorial writer for the Star. How do you balance attacking a transaction that may jeopardize the City and the Mayor who has mishandled it when you have to keep pretending that he is our hero in order to accomplish the goal of beating the Bridge Company into submission.