‘Thou shalt not leave arena deal’
North Glengarry is remaining steadfast in its decision to hold South Glengarry to its obligation to continue paying 25 per cent of the Glengarry Sports Palace (GSP) costs, and now has legal advice to support its stance.
At the last council session, CAO Daniel Gagnon confirmed the municipality would be sending a letter informing South Glengarry of its position.
“(The township’s) opinion is they can’t simply opt out or we can’t negotiate an agreement that would allow them to go to zero (support) eventually,” said Mr. Gagnon.
“We can but we don’t want them to. The township isn’t interested in that scenario but we are open to other types of discussions that would maybe lead to something that is more beneficial.”
“The bottom line is at the end of the day we are not willing to negotiate that 25 per cent ownership and stakes,” added Mr. Gagnon who estimated that South Glengarry’s share adds up to about $60,000 to $70,000 for operating costs alone each year, and more money for capital expenses.
The CAO related since the Alexandria facilities are 40 years old, they will need more costly upgrades in the future.
Mayor Chris McDonell said the township relies on the continued support from its neighbours, which shares ownership including maintenance responsibilities for the facility.
In April of 2015 South Glengarry decided it wanted to relinquish its 25 per cent ownership and related financial obligations to the Glengarry Sports Palace.
North Glengarry has received a legal opinion indicating SG “cannot unilaterally terminate the end of the financial commitment to the GSP without North Glengarry’s support,” despite Section 12 in the original 1976 contractual agreement between the two parties that deals with dispute resolution.
North Glengarry will “cease any discussion that would lead to the end of SG’s legal commitments to the GSP.”
North Glengarry tells South Glengarry it can’t withdraw from Palace agreement