Waterfront Trust informs council of restructuring
Reorganization took place in late 2016
The Hamilton Waterfront Trust will formally notify city council Friday that it restructured into two organizations a year and a half ago.
The arm’s-length agency, whose mandate is helping Hamiltonians connect with their waterfront, will also seek permission to reorganize their board to eliminate a Hamilton Port Authority position.
The trust began operating as the not-for-profit Hamilton Waterfront Trust — and a corporation called HWT Inc. — after Canada Revenue Agency annulled its charity status in November 2016, because the work it does is not “exclusively charitable.”
Executive director Werner Plessl said that while there had not been “formal correspondence” with the city about forming two entities, discussions looking at the structure of the organization took place with councillors dating back to last term.
He said the trust makes an annual “submission” to the city, but only makes a formal presentation if requested.
The trust receives annual city funding for the rink. In 2016, the city provided it with $307,218 to operate the outdoor rink and $333,795 is set aside in the 2017 budget.
“Corporately, there’s no change in how the city deals with us,” he said Tuesday.
“The work we do through the city is through the (nonprofit) Hamilton Waterfront Trust and that has not changed in any way.”
Plessl said the restructuring took place in November 2016.
But a corporation profile report shows HWT Inc., which includes Williams Fresh Café and Hamilton Waterfront Trust Centre, was incorporated in January 2016; and a search from Corporations Canada shows the nonprofit, which houses leisure activities such as the rollerskating and ice-skating rinks, was registered in January 2017.
According to a motion from the trust’s January board meeting, which has been submitted to the city for Friday’s meeting, the board wants its five members to be appointed by the City of Hamilton. Currently, four appointments are made by the city and one person is appointed by the Port Authority.
Plessl said the request stems from the fact that while the trust began its life with a $6.3-million endowment from a lawsuit settled with the federal government, the trust now mainly subsists on revenue from waterfront businesses and project contracts from other levels of government.
“The board felt that it’s better represented if it’s city representation on the board,” he said.
Council is expected to receive the request and refer it to its governance review subcommittee.
If the waterfront trust’s request is approved by the city and the Hamilton Port Authority, the change in board structure would take effect after the Hamilton Port Authority’s appointment expires on April 10, 2018.
The trust, which was created in 2000 to settle long-standing issues about the waterfront that existed between the city, the federal government and the former Hamilton Harbour Commission, has developed amenities such as the two popular waterfront trails, one in the west end of the harbour and the other along the Beach Strip.
In the past, the trust has struggled to stay out of the red.
As the Spectator reported in 2015, the trust lost money for seven years straight, about $2.5 million from 2007 to 2014.
A 2015 audited financial statement that was provided to the city shows a deficit of $453,563.
The Spectator has requested the 2016 financials, which were to be presented to the board in June, but has been told the board must first sign off on them.
What the city provides the trust to operate the rink has doubled in recent years.
The board felt that it’s better represented if it’s city representation on the board. WERNER PLESSL TRUST EXECUTIVE DIRECTOR
The city began giving the trust about $150,000 annually for the rink in 2012, which was to cover capital costs for the first two years.
In 2015, the trust asked council to approve a plan to provide $310,000 in annual funding on top of the about $150,000 they already provided them to maintain the rink.
Council signed off on a staff-recommended $137,500 bailout of the agency for that year.
The amount the city provides the trust to operate the outdoor rink has more than doubled since then, increasing to $307,218 in 2016 with $333,795 set aside for 2017.
Plessl said the increase is because the operating agreement for the rink ended in 2015, and the city now provides funding for the summer season in addition to the winter season, because both ice and roller skating take place.