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4feb2010:
MLA
Hurlburt at the centre of pervasive and
irresponsible MLA expense spending, slammed by
media...
Yarmouth MLA big
winner in provincial "Expense Lotto"...
named in Auditor General's report to speaker
regarding expense account spending... The
just-released Auditor General's Report points out
that, even though the NDP government has made some
inroads in curbing excesses in MLA spending,
problems remain and Yarmouth MLA Richard
Hurlburt is apparently named as one of the
culprits for having an $8000 generator installed
at his home. Some of the most serious offenses include
$43,000 in "excessive" spending for
computers, furniture and cameras, plus $6,000 for one
MLA for web design. >>
full story
3feb2010:
To Haiti with love Feb 5 at Th'YARC....
the fundraiser will showcase many talented individuals from the area with ALL funds going directly to Haiti.
The Putz Brothers, Ashley MacDonald, Sandy Ackles, Chimera,
Arden and Suzanne Gaudet, Connie Salulnier, James Ogden,
Tic, 6 Hours. 7:00pm. Donations.
2feb2010:
Shelburne County cash
goes to pay off SWSDA legal debt... After
recently losing a legal battle it instigated ten
years ago, the South West Shore Development
Authority (SWSDA) will be bailed out of a
large cash settlement with Ocean Produce
International for a cessation of the suit and
counter suit.
In their closed-door,
January 28 "Team Shelburne"
meeting, the Shelburne County mayors and wardens
agreed to contribute to SWSDA an "agreed
amount" from the Shelburne Youth Centre
Fund. In actuality, such a fund does not
exist, as SWSDA lawyers testified in a Yarmouth
court in 2008 that, under CEO Frank Anderson's
direction, all of the funds from the sale of the
Youth Centre, plus the remaining administrative
fund supplied by the province, was spent by SWSDA
and remained only as a "bookkeeping
entry".
The judge ordered SWSDA
to place $780,000 of other funds in a separate
account until the legal action was over. A court
order from Justice Allan Boudreau releasing
the funds was delivered to the Yarmouth Court on
Friday. Team Shelburne also voted to have SWSDA
release the funds to the Town of Clarks Harbour
for safekeeping, but clerk Brian Crowell says it
may be weeks before the "banking
procedures" provide for the transfer of the
funds.
One economic specialist
familiar with SWSDA's operation told SCT,
"Given the past record of Anderson and SWSDA
deducting all sorts of costs from Shelburne County
project funds, I'd be surprised if there was much,
if anything, left when they finally turn the
remainder over to Team Shelburne." Anderson
has recently admitted that at least $181,000 in
"project funds" were charged against the
OPI legal costs. As for Team Shelburne's
expectations that they will receive monies from
the "Youth Centre Fund", the specialist
thinks that is "wishful thinking."
2feb2010:
Yarmouth council
attacks province for "punishment" in
"personal" CAT decision.... Members of Yarmouth town council
are keeping up that offensive against the NDP
government surrounding the recent decision to cut
off subsidies to the CAT ferry owners after $20
million over less than five years.
Councilors say they believe the province’s decision to discontinue funding of
The Cat ferry service is personally motivated.
“This is a choice to cause strife and hardship,”
Councillor Esther Dares was quoted in the
Yarmouth Vanguard. “How can we read that any way but personal? It’s punishment.”
>>>
full story
feb2010:
Editorial: Lobbying is NOT the name of the game in economic development
...
Over
the past decade, the South West Shore Development
Authority (SWSDA) has increasingly interjected
itself between populations and the municipalities
in our area, not to mention the provincial and
federal governments. A gradual process, SWSDA
inserted itself by establishing itself as “the
Authority” through which all funding was
funneled and either acquired or controlled. People
and officials actually began to believe that
funding approval was contingent on SWSDA making
the application.
SWSDA’s control of funding applications
to both provincial and federal agencies resulted
in the eventual replacement of municipal
governments in their efforts to plan and control
their own socio-economic development in the
geographic areas covered by the
RDA
.
Additionally, SWSDA imposed itself in the
funding and program relationships between
individuals and non-government organizations and
federal and provincial programs like Community
Access Program (computers in communities),
provincial immigration programs, human resources
programs, seniors programs and community services
through their designation by federal and
provincial agencies and by the creation of
subordinate agencies controlled entirely by staff
with little or no accountability even to the SWSDA
board pf directors.
This made it increasingly difficult for
individuals and NGOs to establish dialogues with
government bodies and access funding from these
bodies. It became not uncommon for civil servants
to refer citizens to SWSDA if they were seeking
funding or access to a program. A good example of
this is the
CAP
program that is dominated by SWSDA with the active
support of staff of the provincial Library system.
The result has been a concentration of
transformational power in the hands of SWSDA staff
that is unfettered by the normal checks and
balances imposed on governments by the electorate,
its elected officials or public servants. In so
doing, the
RDA
has dramatically weakened the relationship between
populations and municipalities in South Western
Nova Scotia and provincial and federal government
bodies. The result is a weakening of local
capabilities to plan and manage their own
development.
This destructive behaviour has further
exacerbated the negative impact of SWSDA over our
communities and citizens over the past decade. The
recent examples of SWSDA contributing to political
fund-raising, initiating letter-writing to
provincial ministers by municipalities, leaking
complaints to opposition parties and the press
have now been compounded by SWSDA’s blatant
efforts to generate negative press respecting the
decision about subsidies for the high-speed ferry
by taping local populations for YouTube.
Neither the public consultation that led to
the creation of RDAs or its enabling legislation
anticipated that RDAs would take control and
exclude people, organizations and municipalities
from control of their own development. Nor did it
expect that RDAs would become lobby groups using
its resources to put pressure on governments or to
moblize public opinion against governments.
Neither the next
RDA
established to service
Shelburne
County
or the “new”
RDA
being designed on the old SWSDA model should adopt
any of these bad habits that defined our previous
RDA
for so long.
31jan2010:
Mink stink Song video
debuts on YouTube.... A
catchy ditty, Nobody's Listenin' written by
John Horton and performed by Chett
Buchanan and Family, appeared on YouTube
Sunday. The song is a light-hearted poke at
the serious situation plaguing Tusket-area
homeowners, as offal from up to one million mink
appear to be fouling the region's waterways with
blue-green algae. >>>
View video here. For
more information about the mink stink.
20jan2010:
Legal bills still
outstanding... According
from sources from within South West Shore
Development Authority (SWSDA), at least
$50,000 in legal bills for the 10-year civil suit
are outstanding to top-end Halifax law firm McInnes
Cooper. Two of the firm's top litigators - Gavin
Giles and Bob Belliveau - led the McInnes
Cooper team until the suit was recently settled
just days before a six-week trial was to begin.
At a recent Shelburne
Municipal Council meeting, warden Sherm
Embree described the fees as SWSDA's primary
liability and the controversial $1.75 mortgage on
the Shelburne Sound Stage property as the
primary asset. SWSDA has been order by the
province to wrap up their affairs and cease
operating by March 31.
The legal fees over the
ten years are estimated to be more than $300,000,
but SWSDA accounting reports have never shown the
fees as a line item. Previous reports appeared to
have the fees lumped in with paper and copy
supplies and recently CEO Frank Anderson
created a "dummy" project called "Shelburne Sound
Stage/Park", which now shows a $181,000
deficit. Anderson
has told board members and others that the project
account is really to cover the legal fees.
29jan2010:Shelburne Town out of SWSDA orbit....
The Shelburne Town Council voted at a
special meeting Wednesday evening to decline
participation in any new regional development
agency organized by the current staff and board of
the South West Shore Development Authority
(SWSDA). The town joins Clarks Harbour and Municipality
of Shelburne in separating from the troubled,
Yarmouth-based development group.
SWSDA has been the
subject of an extensive investigation by the Office
of the Ombudsman and has been on the two
losing end of several legal actions recently,
including claims that they refused to properly
disclose expense accounts and that they
misappropriated assets subject to a $5 million
civil suit. The 10 year-old suit was settled just
days before a 6-week trial was to have begun.
Those familiar with the suit anticipate that the
settlement ranged between one and two million
dollars.
$800,000 development
funds to be released... The settlement
will release a court hold on almost $800,000
destined for economic development in Shelburne
County. "I wouldn't be surprised," said
a local economic development specialist, "if
those funds disappeared into SWSDA's bank account
within minutes of that court order being
lifted." Previously, more than $700,000 from
the sale of the Shelburne Youth Centre was
spent by SWSDA and, according to lawyers for CEO
Frank Anderson, became just an
"accounting entry."
29jan2010:
NDP cash grab charged in Cat Ferry
cancellation...dead cat to cost $3 million....
The Cat Ferry could still cost Nova Scotia taxpayers up to $3 million this year, even though it won’t be running, according to
Economic Development Minister Percy Paris...
>>> full
story.
Liberal party leader Stephen
McNeil told an online news conference on
Thursday that the sudden decision to de-fund the
Cat Ferry to the USA was really "a cash
grab" by the government, who is exaggerating
the economic condition of the province. McNeil was
also critical of the government's decision to
unilaterally remove up to $15 million in subsidies
to the ferry operator in 2010. "They did this
with no consultation with the citizens or
government officials in the area affected,"
says McNeil.
An ACOA-funded
transportation study of southwest Nova Scotia is
due to be delivered within weeks. The study is
likely to address several possible iterations of
ferry service for the regions, including how to
protect the essential needs of the fishing and
fish processing sectors to get product to markets
in the USA and upper Canada.
28jan2010:
Shelburne County says NO WAY JOSE ! to SWSDA...
Councils for the Municipality and Town of
Shelburne met Wednesday evening to discuss the
fate of their respective relationships with the South
West Shore Development Authority (SWSDA) and
its controversial CEO, Frank Anderson.
"Same head, different hat," was the
comment of one municipal councilor, as the
discussion turned to the possibility of joining up
with Yarmouth-area municipal units in a
"revised" SWSDA with Anderson at the
helm.
The municipal council
voted unanimously to reject an offer from SWSDA
chair Rod Rose to join the new group and
voted unanimously to reject Frank Anderson's
separate plea for a $30,000 funding commitment to
the current SWSDA, which the provincial government
will cease to fund as as March 31, 2010.
"Throwing good money after bad," was a
side comment heard during the debate. The
Municipality has extended almost $200,000 in loans
and guarantees to SWSDA, which might be lost if
the agency's finances are as bad as has been
reported.
Municipal warden Sherm
Embree announced that, on behalf of the five
Shelburne County governments, earlier in the day
he had sent a letter to Economic Development
Minister Percy Paris requesting guidance in
forming a county-wide Reginal Development Agency
and had spoken with Economic Development executive
director Neal Conrad, who offered the
province's assistance in the County's efforts
toward self-directed economic development.
Previously, the Town
of Clark's Harbour council voted unanimously
to opt out of SWSDA's new development scheme and
the Barrington Municipal Council has said
that they would not commit "one red
cent" to a new Anderson-led Agency until all
of their questions had been answered. The Town
of Shelburne met in closed session Wednesday
to discuss the growing financial and legal
entanglements with SWSDA. Previously, Mayor Al
Delaney said the Town was not happy with
SWSDA's recent performance on their behalf.
Only the Town of
Lockeport has agreed to continue with SWSDA. Mayor
Darian Huskilson told and economic development
summit recently that, despite all of the problems
with SWSDA, it was "still a good investment
for $3000."
26jan2010:
Not one red cent for SWSDA from ShelCo munis... at
least three of the five municipal councils in
Shelburne County have decided not to invest any
monies in the core funding for the new Regional
Development Authority being created in
Yarmouth by Frank Anderson and his former
SWSDA board of directors until Anderson and
company can provide answers to a slew of questions
directed at him by the councils. One councilor
said his colleagues will not provide SWSDA
"one red cent" until stringent
conditions are met.
The Town of
Lockeport previously committed $3000 in
funding to the new group and the Town of Shelburne
expects a decision after a special meeting called
for Wednesday evening. The various "in or
out" SWSDA positions were announced at a
brief economic development summit held in
Shelburne Tuesday.
In a letter to Anderson
from all of the Shelburne County units, the SWSDA
chief was put on notice that any involvement in
the new RDA he has been pressuring municipalities
to join would only be considered if the units felt
assured about the issues of accountability,
transparency, board structure, financial
management, compliance with the development act
and implementation of recommendations arising from
the Ombudsman's investigation and report.
The tone of recent
meetings in this area and the reportedly hostile
and fractious tenor of the recent SWSDA meetings
in Yarmouth make it unlikely that Anderson will
see anyone but Lockeport supporting a new RDA
under his leadership.
26jan2010:
Shelburne Town still playing hide-and-seek with
SWSDA documents... in an on-going game of
cat-and-mouse, the staff of the Town of
Shelburne continues to keep certain documents
from public scrutiny, especially those connected
to the Town's troubled relationship with the South
West Shore Development Authority.
Despite being advised on
numerous occasions that Provincial law dictates
that "A person has a right of access
to any record in the custody, or under the
control, of a municipality upon making a
request..." the staff refused to make public
Tuesday a recent letter to SWSDA chairman Rod
Rose and a response to the Town from
Rose.
Most recently in SCT, as
a result of a document request, it was
disclosed that the many public assertions by SWSDA
executives and town council that SWSDA was
assisting in generating funding for the $5 million
harbour project were a complete fabrication. One
can only imagine what they are hiding now.
21jan2010:
SWSDA
BLINKS!... $5
million, ten-year civil suit with OPI settled...
in a
surprising turn of events, SCT was advised today
that the impending trial in the 10-year legal
battle between South West Shore Development
Authority (SWSDA) and Ocean Produce
International (OPI) is over, based upon a
settlement between the two parties. The
long-anticipated, high-stakes trial was originally
set to start on January 18, but was postponed
twice by SWSDA law firm McInnes Cooper,
according to SWSDA sources.
When contacted by SCT,
OPI vice president Ed Cayer would only say
that "the terms of the settlement were
satisfactory to OPI." SWSDA chairman Rod
Rose was unavailable for comment. The lawsuit
was instigated by SWSDA CEO Frank Anderson
soon after the agency acquired the assets of the
former Shelburne Park Development Agency (SPDA)
and has been a contentious issue among regional
politicians and civic leaders. Deceptive and
destructive practices by SWSDA and SPDA were
alleged in court filings in the case and trial
witnesses were expected to include Anderson, Cayer,
Hugh Mackay (SPDA) and others.
It is anticipated that
the lawsuit settlement and legal fees to date have
cost SWSDA member municipalities more than $1
million. Recently, SWSDA board members were
advised by Anderson and his legal team that funds
would have to be generated to pay for the upcoming
trial. One SWSDA board member told a regional
economic summit meeting recently that SWSDA was
$120,000 or more in arrears to the lawyers and the
SWSDA board had charged Anderson with seeking
"funding partners" for the legal costs.
Anderson is reported to have told municipal
partners over the years that the OPI suit would
never be a problem for SWSDA.
At least $182,000 of the
legal fees are thought to be obscured in
questionable accounting entries in SWSDA's recent
financial filings. None of the municipalities
queried by SCT about an entry in the December 31,
2009 "project report" for "Shelburne
Sound Stage/Park" could identify the
project, purpose or activity related to the
mysterious project. The entry shows an unaccounted
for $181, 931 deficit against a $75,000 budget
with zero income..
A SWSDA board member
would only say that "I think that entry is
for legal fees," and another municipality
agreed to seek clarification from CEO Frank
Anderson. Anderson and Rose have reportedly
convened a special "in camera" meeting
of his board on January 25 to seek approval for
the settlement agreement.
20jan2010:
SWSDA sinks in year-end
red ink... mysterious $181,000 project deficit...
the year-end 2009 financial statements
filed recently by South West Shore Development
Authority (SWSDA) show a deficit in project
funding of $334,000 to year-end, with more than
50% of that amount, or $181,931 levied against a
project called "Shelburne Sound
Stage/Park". It is the only
"planning and research" project with no
income connected to it. None of the SWSDA
directors contacted could identify the project and
it has not appeared previously in any of the
voluminous "staff reports" the agency
produces. The Sound Stage property was sold by
SWSDA more than two years ago.
A regional economic
development expert familiar with the operations of
SWSDA told SCT that one strong possibility for the
mysterious project is that it was created as a
line item for charges for legal fees in SWSDA's
10-year, $5 million battle with Ocean Produce
International. The case goes to trial one week
from today and is estimated to cost SWSDA more
than $500,000. A loss for SWSDA and judgment could
add millions to the cost. "If it isn't purely
illegal," said the expert, "it is
certainly a deceptive way to hide expenses from
prying eyes."
Recent meeting minutes
show that the board of directors instructed CEO
Frank Anderson to seek "funding
partners" to underwrite the legal costs. No
announcement has been made about any success in
this area.
18jan2010:
Clarks Harbour says no to
SWSDA.... by a unanimous vote last week
the town council of Clarks Harbour decided
to withdraw from any future role with the
Yarmouth-based Regional Development Agency which
has performed very poorly for Shelburne County in
its 14-year existence. “There’s been a lot of baggage with SWSDA,” said
mayor Leigh Stoddart to the Coast Guard. He
noted controversial land sales, a lawsuit and difficulties with finances as some of the past problems.
A recent down-graded performance audit by ACOA and
the Department of Economic Development
noted that SWSDA "barely met
expectations" in Shelburne projects while
they exceeded in projects for Yarmouth County and
that Shelburne County required "considerably
more attention." >>>
full story
14jan2010:
Sinking SWSDA likely to
leave munis on the hook for $1 million-plus... in
what could play out as a financial disaster for
some of the municipal "partners" of the
faltering South West Shore Development
Authority (SWSDA), the looming bankruptcy of
the development agency would mean that the various
loan guarantees and loans and grants to the agency
would be unrecoverable, resulting in further
economic hardship for some municipal governments.
The Municipalities of Argyle and Clare are
on the hook to banks for $116,000 each, while the
town and municipality of Yarmouth have combined
liability of $239,200. The Municipality of
Barrington would have to write off $99,2000
and the Municipality of Shelburne has two
guarantees outstanding for a total of $154,000.
Additionally, SWSDA has an outstanding loan with
the CBDC in Shelburne for $150,000. All of
these figures include the recent scheme devised by
SWSDA CEO Frank Anderson to convert a
request for a $200,000 line of credit to a series
of "repayable grants".
The justification for the
lines of credit proffered by Anderson was for
short-term support for programs underway for which
payments had not been received from funding
partners. There is no indication in financial data
presented to the municipalities that any of the
monies were used for programming. "We can
pretty much count on writing off these SWSDA
guarantees," said one local warden at a
recent meeting discussing the SWSDA relationship.
"These guarantees were intended to be used to
add flexibility to SWSDA in carrying out
programming," he added, "not to be used
up immediately."
If a SWSDA bankruptcy
occurs after or as a result of the $5 million
civil suit instigated by Anderson ten years ago
against a former SWSDA tenant and coming to trial
in ten days, the costs of the litigation, legal
fees and judgments could increase SWSDA's debt
into bankruptcy by several million. Several board
members have said they were told by Anderson that
SWSDA is effectively teetering on the edge of
having no monies for day-to-day operations.
In the light of a
government mandate for the current SWSDA to cease
doing business as of March 31, 2010, one scenario
being discussed by some in the area now is to have
SWSDA declare bankruptcy immediately, which would
forestall any further debt incurred by SWSDA
relating to the civil suit or other outstanding
liabilities. "It is crazy for them to
continue under these circumstances," said one
local official.
Any bankruptcy action by
SWSDA would have a court-appointed trustee oversee
the collection and distribution of assets to major
creditors, who are likely to include Ocean
Produce International (OPI) and the law firm
of McInnes-Cooper, (worked for several
years under Anderson's direction on the 2001
SWSDA suit and OPI counter-suit), Province of Nova
Scotia ($450,000 mortgage on SeaCoast Studios
property) and agencies, firms and individuals who
hold unsecured loans with SWSDA. The most likely
assets would include $780,000 set aside by Justice
Allan Boudreau (also overseeing the up-coming
civil trial) in a court action in 2008, a $1.75
million mortgage on the Sandy Point property
adjacent to OPI's facilities and the building
owned and occupied by SWSDA in Yarmouth.
The trial was suddenly
put on hold last week by McInnes-Cooper lawyers,
but is scheduled to resume on January 25. SWSDA is
reported by board members to be in arrears to the
lawyers in amounts ranging from $50,000 to
$122,000, with an additional minimum of $150,000
needed immediately to complete the trial. Any
costs for a likely appeal in the case would be
additional.
13jan2010:
$320,000 SWSDA legal bill
unpaid - trial postponed.... In a
surprising announcement at a Shelburne County
economic development summit on Tuesday, it was
disclosed by South West Shore Development
Authority (SWSDA) board members that the
embattled agency has yet to pay its legal team a
reported $172,000 spent to date and $150,000 or
more needed for a six-week, $5 million civil trial
scheduled to begin on Monday, January 18. The
agency is represented by Halifax-based McInnes-Cooper
senior partners Bob Belliveau and
Gavin Giles. The costs of just the legal fees
for the pair during trial is expected to be
$15,000 per week and it is estimated that real
costs of the case to SWSDA and its member
municipalities is closer to $500,000. Trials of
this nature almost invariably include "expert
witness" reports, which would add
$150-200,000 to the costs.
It was also announced
Tuesday that SWSDA's lawyers had asked for a
postponement of the trial for at least one week.
Trial was precipitated by a suit filed ten years
ago by SWSDA against local firm Ocean Produce
International (OPI), who also filed a counter
suit and another separate action, with claims
totaling $5 million. Board members say they were
not advised by SWSDA executives about the reasons
for the delay.
Meeting chairman Sherm
Embree suggested that OPI had recently refused
an offer to settle by SWSDA, a claim denied by OPI
vice president Ed Cayer, who was present at
the meeting. "The exact opposite is true, as
SWSDA refused our recent offer, but never bothered
to respond with a counter offer." If SWSDA
board members are being so misled by its executive
managers about so important an issue, added Cayer,
"what else are they not being told about
SWSDA's legal action and other
circumstances?"
The five week trial is
being heard by Justice Allen Boudreau. None
of the allegations in the suit have been proven in
court.
13jan2010:
SWSDA chiefs meet with
ministers to get emergency cash...
SWSDA board chief Rod Rose and CEO
Frank Anderson reportedly met with Economic
Development Minister Percy Paris and Fisheries
Minister Sterling Belliveau on Tuesday to
plead for a $500,000 emergency loan to prop up the
faltering development agency. SWSDA board members
have been reporting for weeks now that the agency
was "bankrupt", even before Tuesday's
disclosure of the overdue legal bills. "The
province would be crazy to give them more cash to
feed directly to Halifax lawyers," said a
political observer familiar with SWSDA's current
state of affairs.
At an unusual special
SWSDA board meeting over the holidays, according
to board members, it was suggested that, rather
than the legal fees being paid by SWSDA, the
municipal units in Shelburne should front the
legal fees. Clarks Harbour mayor Leigh Stoddart
suggested that one scenario would have the five
Shelburne County SWSDA members advance the
$300,000-plus in legal fees and be reimbursed from
the $22,000 monthly mortgage payments from
"the base" (former CFS Shelburne, now
owned by SeaCoast Entertainments) due
beginning May 1.
Those familiar with the
property sale and activity of SeaCoast owners Jim
Kendrick and Mary Barstow in the past
two years think this scenario unlikely. The pair
have reportedly failed to pay even property taxes
on the site and have established a number of
failed businesses at the property since taking
control. Currently, the property appears to be
abandoned, with battered vehicles in ditches and
some of the buildings left open to the elements,
including piles of blowing snow. (see photos HERE)
13jan2010:
CAT ferry
company wanted additional $5 million, says deputy
minister..... at a media scrum
following testimony to the public accounts
committee in Halifax on Tuesday, economic
development deputy minister Ian Thompson
told reporters that Bay Ferries Ltd wanted
a subsidy of $5 million in 2010 to operate the
high-speed ferry between Yarmouth and Maine.
The government
subsidies to the private firm were $1.3 in 2005
and grew by more than 900% to $12 million in 2009.
Ridership during the same period plummeted, from
more than 100,000 passengers to 76,000 in
2009. The increase in per-passenger subsidy
grew by more than 1200% in the same period.
According to
AllNovaScotia.com, when asked by Yarmouth MLA Richard
Hurlburt whether Thompson or his department
consulted with Yarmouth-based SWSDA on the ferry
subsidy issue, the deputy replied in the negative.
Anderson has reportedly been working behind the
scenes in trying to influence the outcome of the
ACOA transportation study for the region now
underway. One of the scenarios presented would be
a year-round service from the USA to Yarmouth,
which is not likely sustainable without
considerable subsidy, but which some observers
fear would also result in the end of the Digby-St
John ferry currently in service.
Anderson reportedly also
was trying to persuade his board to fund the CEO
and SWSDA staff to prepare a "business
case" for the Yarmouth ferry but has also
reported to his board that he would be
virtually unavailable during the six weeks of the
civil trial.
The $2 million government
subsidy given to the failed Maine-Yarmouth Starlink
Aviation service amounted to a per-passenger
subsidy of more than $550. The government also
funded the failed airline by pre-paying blocks of
tickets for then-minister Hurlburt and others to
travel from Yarmouth to Halifax and return.
2dec2009:
Yarmouth McDonalds Nova Scotia's dirtiest
fast-food restaurant?... A review of the
online food safety registry from the Department
of Agriculture shows that the Starrs Road
McDonalds is one of the biggest violators on
record in the periodic inspection reporting system
instituted last year by the provincial government.
The burger joint racked
up seven violations in one inspection, ten times
the average rate for all other McDonalds in the
province. Only Tim Hortons shops rated
worse than the average McDonalds in fast-food
violations, with almost fifty percent more average
dings. Burger King rated best overall, with
.25 violations per inspection, followed by A&W
with .33, Wendy's with .42 and Boston
Pizza with .5.
The inspector at the Yarmouth
McDonalds cited the restaurant for inadequate
general maintenance, inadequate design or
maintenance of filters or other grease extracting
equipment, failure to provide sanitary conditions
of food contact surfaces, failure to provide
sanitary conditions of non-food contact surfaces,
failure to store potentially hazardous food at
proper temperature, inadequate sanitation of
non-food contact surfaces and inadequate
construction and/ or maintenance of walls and
ceilings.
There were 4500 listings on the
government web site and no other restaurant report
accessed had as many violations as McDonalds. The
average violations for all fast food operations
was .62, less than one tenth of the Yarmouth site
and the average for random samplings was 1.37
violations, or one fifth of that number. The
results are gained from periodic
unannounced inspections described on the
government web site as "part of a
comprehensive, three-prong approach to food
safety". >>>
see web site here
1Dec2009:
Audit called for as Starlink Air shuts down
after gutting $2 million provincial fund....
Quebec-based charter service Starlink Aviation
flew its last flight into and out of Yarmouth on
Monday after going through a $2 million, 4-year
provincial contingency fund in nine months.
The subsidy amounted to almost $7,500 per day of
operation. The carrier had flights to and from
Yarmouth, Portland, Maine and Halifax.
Bill Estabrooks, acting minister of economic and rural development,
told the Halifax Herald Monday that he has asked staff to get an
answer. "Not to imply that there was money misspent, but the intent was this money was to help over a four-year period, and nine months later, they’re out of dollars," he said.
"Clearly, there’s something gone awry with the business case that was presented to the previous government,"
Liberal leader Stephen McNeil told the
Herald. "It would be wrong-headed to go and just continue to pour more money into this without knowing the business case."
David Rankin, executive director of the Yarmouth International Airport
Corp. said the corporation will account for the money in the provincial loan.
The corporation board has strong ties to the
previous Tory government, who approved the $2
million outlay based on what they assured
was a solid business plan.
The board is populated by
many who are considered by some as a
"network" of powerful Yarmouth business
interests who are also seen as the power brokers
behind the Yarmouth Development Corporation,
Yarmouth Port Commission, Yarmouth Waterfront
Development Corporation, Yarmouth Area Industrial
Commission (YAIC) and South West Shore
Development Authority (SWSDA)
The YAIC and SWSDA have
been subjects of a year-long investigation by the
Office of the Ombudsman, the report for which is
due within days. >>>
see Herald story here
1 Dec
2009:
Deputy Minister to meet with SWSDA board about
Shelburne Sound Stage mortgage and loan
guarantees...
As a follow-up to his letter in May to the Mayors
and Wardens in the region informing them of the
government's decision to disband the current South
West Shore Development Authority (SWSDA),
deputy minister Ian Thompson of the Department
of Economic and Rural Development will meet
December 11 with voting members of the SWSDA
board, most of whom are mayors, wardens and
councilors.
The meeting,
according to Mayors Darian Huskilson of
Lockeport and Leigh Stoddart of Clarks
Harbour, is designed in large to discuss the
government's position on a recent request of SWSDA CEO Frank
Anderson for a $500,000 additional line of
credit, backed by the Department of Economic and
Rural Development. SWSDA, according to Stoddart
and others who have discussed the matter with
Anderson, is on the brink of bankruptcy and will
not last into the new year without a major cash
infusion. The topic of a new RDA for Shelburne
County is also likely to be discussed, according
to Stoddart.
Another item on the
agenda, according to the mayors, is Anderson's
request for the government to take over the $1.75
million second mortgage of the former Canadian
Forces base in Sandy Point. In seeking permission
of his board in 2007 to sell the parcel to a pair
of American real estate speculators operating as Seacoast
Entertainment Arts, Anderson told his board
the government had agreed to carry the mortgage,
as they hold a $450,000 first mortgage on the
property.
"The large mortgage
is an asset to SWSDA," a real estate
specialist told SCT. "I can't see why they
would possibly want to dispose of it unless they
felt that the mortgagees were at risk of not
making payments or that there was some other
unspoken liability with the property. It's like
money in the bank." Americans Jim Kendrick
and Mary Barstow have had a troubled tenancy
at the sound stage property and have instigated
several failed businesses there, including a video
production firm, audio recording studio,
candle-making firm, hotel, mini-market, mini-golf,
drive-in movie, newspaper and calendar publishing
firm.
Anderson negotiated a
mortgage with 2 years of no payments, but the
$32,000 per month rates begin in 2010 and the
couple have reportedly had trouble making the
facility pay for itself and are rumoured to be in
arrears on their $50,000 per year property taxes.
They have sold off ten prime lots from the parcel
and have the property listed on several internet
web sites as for sale for $5 million, but valued
at $20 million. Despite the general lack of any
business at the site, they claim $1.2 million in
revenues in their prospectus. One potential buyer
told SCT that they appeared to be "desperate
to unload the property."
Some additional factors
in the government's decision about the property
are likely to be the impending Ombudsman's
Report, expected to be highly critical of
SWSDA and Anderson in a number of areas, but
especially in their handling of the sale of the
base and the former Shelburne Boy's School. The
Base property is also connected to an on-going
legal battle between SWSDA and Shelburne-based Ocean
Products International. SWSDA was charged by
OPI with "fraudulent conveyance" of the
proceeds from the boys school. When Anderson and
SWSDA admitted that he funds had been spent, a court
issued a consent order protecting an amount equal
to those from the sale of the base. This
effectively keeps SWSDA from
"dispersing" or manipulating assets into
an "accounting entry" which are subject to claims in the $5 million suit.
That case goes to trial in Halifax on January 18.
30Nov 2009:
SWSDA ultimatum meets strong resistance...
The response to a recent letter from SWSDA chief
Frank Anderson demanding letters of loyalty
from political leaders by December 11 is being met
with almost universal distain in Shelburne and
Yarmouth County.
The letter appears
to be designed to short-circuit efforts by the
various town and municipal councils to assess
their options to choose an appropriate development
agency to meet their current needs. In May, the
deputy minister of economic development told all
SWSDA members they had until March 31, 2010 to
inform him of their intentions about an RDA
association.
"Who the $%#@ does
he think he is," said one senior official.
"I can't imagine any council in their right
mind agreeing to those terms." When
discussing the letter at a meeting last week, the Yarmouth
Municipal Council had many questions for SWSDA
board member Trevor Cunningham, whose
consistent response apparently was "I'll have
to ask Frank." The council decided to
have Frank Anderson appear at a future council
meeting to answer questions about the demand and
about the operation of SWSDA.
November
7, 2009:
Yarmouth
eateries
rack up food inspection violations.....
Of the 78 Yarmouth area food service facilities
listed on the Nova
Scotia Food Inspection online database a total
of 117 violations were listed for inspections in
2008 & 2009. The most serious violators
included the MacDonalds franchise on Starrs
Road, which rated a whopping seven violations
during one inspection this past May. The reports
cited hazardous food storage, unsanitary
conditions and inadequate maintenance.
Other South Shore towns
had fewer violations per capita, with Shelburne
showing 16 for 33 eateries and Liverpool with 6
from 16, one-third the violations per capita than
the Yarmouth units listed.
The Food Establishment inspections
and online reports, according to the Department of
Agriculture web site, "are
part of a comprehensive, three-prong approach to
food safety in the province of Nova Scotia."
November
7, 2009:
SWSDA
staff dodging requests for financial information
results in formal FOIPOP request...
A series of internal memos from staffers at the
embattled South West Shore Development
Authority shows that some of the officials at
the agency are colluding to withhold information
regarding the agency's finances.
A simple
request from a Yarmouth citizen for information regarding what
may be in excess of
$500,000 in legal fees was met with internal
emails in which a senior development officer and
the financial manager agree
to ignore the request. The citizen followed up
with a formal request
under the Freedom of Information legislation. >>>
full story
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