‘Thou shalt not leave arena deal’

The Glengarry News - - Front Page - BY AN­GELA BROWN News Staff

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

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