Gord And The FCM Green Municipal Fund

Oh Gord, you sort of got it wrong in your column about the FCM Fund, "Brownfield fund has a 'mountain of cash.'" That mountain for our purposes is about as substantial as Mount Francis.

Sure they had hundreds of millions at one time and still have a lot today, but FCM reported in October, 2009:

• "To date, FCM has committed more than $400 million to support over 730 sustainable studies and projects."

A large hill of cash remains perhaps. However, it is an insult for Gord to suggest:

• "A surfeit of riches. Bequeathed $550 million by the feds early this decade to subsidize worthy environmental projects through grants and low-cost loans, it sees the fund (which includes $150 million specifically earmarked for cleaning up contaminated former industrial sites) earning interest faster than it can write cheques."

Actually the rate of return on unallocated funds in 2008-9 was only 4.69% as Gord forgot to tell us, an amount less than the annual rate of return since inception.

While FCM may want to give away $55M annually, to even hint that the vast majority of that money could come to Windsor is grossly wrong:

• "In 2008–2009, GMF offered grants and loans to support 72 leading initiatives to make communities across Canada more sustainable. FCM approved over $3.8 million in GMF funding for 38 sustainable community plans, feasibility studies and field tests. Almost $52 million in below-market loans and over $8 million in grants was approved to implement 34 leading capital projects."

The Fund really does not help us much as I will explain. Gord did not tell us everything I am afraid.

THERE IS NO MONEY AVAILABLE FROM THE FUND TO BUY THE ZALEV LANDS IN THE FIRST PLACE!

When you want to look at amateur negotiators, then you need look no further than Mayor Francis and Councillor Brister. Talk about Loose Lips to try to earn political points. A smart politician/negotiator would have said nothing publicly until the deal was done.

Not our Council members. They need to be re-elected and there are lots of voters in South Windsor.

Sure open up your mouths and let the American owner of the Zalev lands know that the City wants to buy them out or expropriate them and if the City buys the property, then the City is on the hook for millions in cleanup costs. What a dream come true. For the owner!

What could have been done as an alternative?

One approach could have been to have the Mayor's colleague Max Zalev go and meet the owner. Perhaps the owner would be afraid that Max wanted back in the business to compete against him and would have sold out. After all, didn't we have the theatre with Max and Eddie who suggested Max ought not to be on the Audit Committee any longer.

Max probably could have bought it cheaply with a low purchase price and an indemnity for the cleanup costs,. Then he could have immediately transferred the lands to the City.

All done, no fuss, no muss, no bother, no big expense.

THERE IS NO MONEY AVAILABLE FROM THE FUND TO BUY THE ZALEV LANDS IN THE FIRST PLACE.

Now---well the owner must just be waiting for Edgar (aka Eddie) to pay him a visit so he can ask for $100M or more. That is the amount that Edgar told me that the owners wanted when he first was running for mayor and after he had a conversation with them as he told me at the time.

Gord, Gord, Gord, you ought to know from the FCM website that the FCM fund does not help pay for the purchase price! Windsor has to come up with the cash. If we do not have enough money for PRBs and want to build a transportation hub and a canal, where is the money for the Zalev lands coming from?

THERE IS NO MONEY AVAILABLE FROM THE FUND TO BUY THE ZALEV LANDS IN THE FIRST PLACE.

It might have come from Edgar's buddies, the Senior Levels, but they have their own financial problems with huge deficits these days.

Here Gord is what the FCM Fund is all about. And do not forget, the fund is for across Canada too so it is hardly likely that we will get multimillions. In fact, go here, to their database and see how little is paid out per project http://gmf.fcm.ca/Search/Search/Search.aspx?lang=e :

• FCM's Green Municipal Fund (GMF) offers below-market loans, usually in combination with grants, to implement capital projects.
  
  GMF can provide financing for up to 80 per cent of costs to a maximum of $4 million in loans combined with $400,000 in grants. Brownfield projects are eligible for below-market loans only, with no funding limit.
  
  For municipal governments, GMF offers interest rates 1.5 per cent lower than the Government of Canada bond rate for the equivalent term.

Funding focus: brownfield remediation

• FCM’s Green Municipal Fund (GMF) offers below-market loans for brownfield remediation projects.
  
  Available funding
  
  Rates for municipalities are 1.5 per cent lower than the Government of Canada bond rate and even further below market rates.
  
  Loans are offered for up to 50 per cent of eligible costs, for terms of up to 10 years.
  
  If your project is exceptional and includes a sustainable redevelopment plan, you may qualify for a loan at an even lower rate, for up to 80 per cent of eligible costs and a term of up to 20 years.
  Timeline
  
  Applications are considered as they are received. Each application is evaluated on its own merits. Not all proposals will be funded.
  
  The funding focus for this sector will remain the same until at least
  March 31, 2010.
  
  What projects are eligible?
  
  The remediation components of municipal brownfield redevelopment projects are eligible for funding, including removal and disposal of contaminated soils or materials, in-situ or ex-situ treatment of contaminated soils, groundwater or materials, the construction or installation of engineering controls and monitoring systems, and building demolition or deconstruction.
  
  Prerequisites
  
  The following activities must be complete before submitting an application:
  
  Phase I and Phase II Environmental Site Assessments of the project site
  
  A remedial action plan or risk management plan
  If these pre-requisites have not yet been completed, are not eligible for funding.

THERE IS NO MONEY AVAILABLE TO BUY THE ZALEV LANDS IN THE FIRST PLACE.

I found nothing in the FCM Fund database for major expenditures for Hamilton or Brantford as Gord related.

With respect to Brantford, I saw this:

• "The City has obtained financial support in the amount of $12 million from the Federal Government and $5 million from the Province of Ontario for the redevelopment of the [Greenwich Mohawk Brownfield Site Redevelopment Project] lands."
  
  Check out this website for Brantford as an example to see how much work is needed: http://www.brantford.ca/content/publishing.nsf/Content/Documents+and+Press+Releases

A comment about Hamilton:

• "The city has purchased a north-end brownfield where it hopes to build the Pan Am Games stadium...
  
  A source told The Spectator the land cost less than $1 million, but the city will face $6 million in environmental cleanup costs...
  
  City council voted to devote $60 million to a Pan Am Games stadium and velodrome. That sum includes $10 million for land acquisition.
  
  However, the city will have to buy more land if the bid is successful because the Rheem site is only about a third of the land needed for the stadium and a velodrome."

I just don't think it is as easy as Gord is letting us believe considering those cities have spent years working on their projects. But then again, I also don't have mind's eye visions to try to help me get re-elected.