Vows To Keep Pressure On Council Over Medical Complex Grant
Mayor Brocanier and several of the Councillors have attempted to defend the handout to Northumberland Medical Arts Inc. (NMAI or the Clinic) with emotion and completely unsubstantiated statements. By allowing passion to trump logic, they have ignored the facts! Following a debate last Friday between Ken Strauss and Councillor Debra McCarthy on Northumberland 89.7 FM’s Week in Review, the CTA is continuing its opposition with a series of 30 second radio ads.
Fact:
The fee waiver will cost the taxpayers of Cobourg over $300,000. That is about 1.5% of all property taxes paid by Cobourg residents plus businesses in 2014. This is not just of a case of monies not collected. These uncollected monies cannot be ignored; due to Provincial law the Cobourg taxpayers must make up the money not collected. Six of the seven directors of the clinic do not live in Cobourg so this giveaway will not affect their taxes.
Fact:
The NMAI is incorporated as a not-for-profit rather than as a government registered charity that issues tax receipts. That means that the directors have the sole discretion to spend all money received as they think best. There is no requirement that money be spent only on things that will improve health care in Cobourg. As a private company, like Holdco, there is no reporting of how much money is received or how it is spent.
Fact:
If the new medical office complex will yield the net profits claimed starting in year one, there should be no need for a taxpayer-funded grant of $300,000.
Fact:
Some claim that the building will aid physician recruitment. The building is now 95% leased to physicians who currently practice in Cobourg. How much room is there for new recruits?
Fact:
Giving $300,000 to a group of physicians will reduce the amount available for donations to Northumberland Hills Hospital.
Fact:
This deal is unfair to other Cobourg physicians and medical practitioners who do not get handouts.