Citing ‘serious Concerns,’ plante ends funding
‘Serious concerns’ with management sparks move to end industrial park’s funding
Mayor Valérie Plante announced Thursday that the city will disband the non-profit organization that runs the Technoparc in St-Laurent, citing “serious concerns” with its management.
As of the end of the year, Montreal will pull the plug on $2.6 million in annual funding to Technoparc Montreal and take over direct management of the high-tech industrial park, Plante said at a news conference at city hall.
On Feb. 13, the city served a preliminary notice to Technoparc Montreal that its mandate would not be renewed when it expires at the end of December.
“Reports produced by the auditor general and by the comptroller general have raised serious concerns about the management of the Technoparc and also how it is respecting its fundamental mission and defending the interests of the City of Montreal,” the mayor said.
A consultative committee headed by Michel Leblanc, president and CEO of the Chamber of Commerce of Metropolitan Montreal, will oversee the transition, she said.
Details on what led the city to shut down the non-profit organization that runs the high-tech hub remain murky.
“Technoparc Montreal ‘s heavy reliance on the City of Montreal, its inability to raise its own funding, and the lack of transparency in the management of its real estate activities and its finances were all criticized by the comptroller general,” Plante said.
When pressed further, she said that according to the comptroller general’s report, which the administration received in January, land in the industrial park was sold but was not built on.
“Because it’s about supporting economic development, you sell land to build something on it to support economic development. But in this case, some land was sold without anything being built on it. So it goes against the mandate of the organization,” Plante said.
The opposition at city hall slammed the administration for shutting down Technoparc Montreal without sufficient justification.
“You’re using a sledge hammer when you need a fly swatter,” said Ensemble Montréal leader Lionel Perez.
The comptroller general’s report was not negative enough to warrant disbanding the agency, he charged.
“It’s easy to raise an aura of irregularity without giving the details,” he said.
“Technoparc Montreal has proven itself as a leader in economic development,” he added.
St-Laurent borough mayor Alan DeSousa, who has sat on the organization’s board for six years as an observer, said the Technoparc is a crown jewel of Canadian industry, employing 7,000 highly trained workers and bringing valuable expertise and tax revenue to the city.
DeSousa said he was not aware of any issues involving land sales.
The auditor general’s report that Plante referred to was filed in 2015, when the auditor raised questions over commission on land sales being paid to the Technoparc’s thenCEO. The problem was addressed at the time and has not recurred, DeSousa said.
“All of the items were dealt with to the satisfaction of the auditor general,” he said.
Plante said that to see the comptroller general’s report from January, journalists must file an accessto-information request.
The city clerk’s office confirmed that the report was not available and the only way to obtain it was to file such a request.