GTH HAS NO TAKERS, YET
Tepid response from Regina
REGINA Regina Mayor Michael Fougere says there’s “no consideration” being given to the city entering into a potential partnership or purchase of the Global Transportation Hub at this time.
“The public information available about the GTH and the debt load and those kinds of issues, and the political surroundings of this and the legal issues, looking at that as a package I’m not sure what the proposal would look like if there was one,” said Fougere.
After results of the RCMP investigation into land deals at the GTH were announced Wednesday, revealing no criminal charges are to be laid, the province declared its intention to divest itself of the project — something it has been rumoured to be considering since at least February.
“The GTH is doing what it’s supposed to, but it may well be time for public ownership not to be a significant part of it anymore,” Don Morgan, minister responsible for the GTH, said Wednesday.
In March, Morgan said that while the province had not discussed it with the City of Regina, “given the proximity and everything else, I’m sure it would be something they would have an interest in.”
The city has already approved a concept plan for a similar project in east Regina, the Chuka Creek business park, which is being spearheaded by private investors.
On Wednesday, Morgan acknowledged the difficulties facing any private tenant or business to become a partner, given the intense public scrutiny surrounding the GTH.
The total debt of the GTH is now at $37 million. Land sales fell short of projections by $10 million in the 2017-18 fiscal year.
Fougere said the city would have a conversation if approached by the provincial government, but it’s not clear “what a viable proposal would look like given what (Morgan) said yesterday.”
In an emailed statement, Pam Malach, the chief administrative officer for the Rural Municipality of Sherwood, which surrounds the city and the GTH, said the provincial government has not approached the RM about a possible partnership or sale.
Malach said the RM “would consider all opportunities that would benefit the region,” and that “the economic activity that the GTH generates is a benefit to the RM and area.”
“The RM recognizes the GTH for complementary opportunities and brings mutual benefits to the area; our interest is to see success in the project regardless of who the regulator is,” read the statement.
Morgan said the government has had discussions about divesting of the GTH since Premier Scott Moe came into office, but felt it was inappropriate to comment while the RCMP investigation was underway.
“We don’t have a timeline or even a plan or a potential buyer,” said Morgan. “We want to review at this point in time what the asset is worth, what a planned strategy might be.”