Conference Centre Update – Relief Coming?
What had been assumed has now been confirmed. Given the default by our Conference Centre Partners, the $100,000 Letter of Credit posted to extend that agreement to March 31, 2010, has now been cashed by the city.
Furthermore, on April 15, a letter demanding payment of $3.045 million within 30 days was sent to our “partners”. This sum represents uncollected fees, costs and expenses foregone on the strength of their promise to perform their obligation to build a hotel to go with the Conference Centre.
This sum represents roughly 4% of annual property tax revenues or, alternatively, roughly 3 years of taxpayer subsidy to the operating costs of the VICC.
We look forward to the city’s announcement of the receipt of these monies which were, in effect, borrowed from the taxpayers of Nanaimo, and to see what will be done with them.