News Release

For immediate releases
September 15, 1999

SYDNEY, N.S. -- Enterprise Cape Breton Corporation (ECBC) today announced that it has successfully negotiated an agreement for the takeover of the Sydport Industrial Park by the Laurentian Energy Corporation Inc. of Sydney. The agreement takes effect immediately.

The purchase price for the Park is $3.7 million (including interest of 6.75% per year for three years). This price was determined based on an independent third party assessment of the property's value. ECBC will hold a mortgage on the property for a period of three years with an option to extend the agreement for an additional two years. During that time, Laurentian must invest a minimum of $5.1 million in capital improvements and create at least 100 new jobs in the Park. A system of credits has been put in place whereby Laurentian's debt will be reduced in proportion to the amount of money it invests in capital improvements and the number of jobs it creates.

Throughout the negotiation process, ECBC has attempted to address the concerns raised by the community as to the future of Sydport Industrial Park. In direct response to the concerns of the CBRM, the current agreement provides for public access to the Sydport wharf, the offer of a seat for the CBRM on the Laurentian Board and an offer of ECBC funding for joint marketing of Sydport and the industrial parks owned by the CBRM.

In response to concerns raised by existing Sydport tenants, the agreement provides for the extension of all leases at their current rent for up to three years. The agreement also ensures employment for existing Sydport staff and ECBC will have a seat as an observer on the Laurentian Board of Directors to provide input into the future direction of the Park.

The choice of Laurentian Energy Corporation is the result of a public call for proposals in February 1998 whereby interested parties were asked to submit a development proposal for the operation and eventual ownership of the Park.

Sydport is generally comprised of approximately 600 acres of serviced and unserviced industrial land adjacent to Sydney Harbour. It has been owned and operated by ECBC since 1988 and previously, by the Industrial Development Division of DEVCO, since 1969. With its current budget allocation, it has been difficult for the Corporation to find the funding necessary to carry out the capital improvements required to enable the Park to achieve its full potential. As a result, a decision was made to determine private sector interest in partnering with ECBC in the Park's development."

"ECBC is pleased with the agreement that has been negotiated with the Laurentian Energy Corporation," said D.A. Landry, Acting Vice-President of ECBC. "Laurentian brings together a group of successful, skilled individuals, who have, through past investments in Industrial Cape Breton, demonstrated a strong and continuing commitment to the region. Sydport is a valuable public asset that has a role to play in the long-term economic development of the region. Through this agreement with Laurentian, we have an opportunity to see the Park developed to its full potential for the overall good of the economy".

Speaking on behalf of Laurentian Energy Corporation, Martin Chernin, President, said "The Laurentian Energy Corporation sees real opportunities for job creation and business development specifically related to energy, heavy fabrication and high technology industries. Sydport will have a key role to play in these developments that will have a positive impact on the area's economy".

Enterprise Cape Breton Corporation offers programs in support of economic development initiatives and is responsible for delivering ACOA's programs in Cape Breton and the Mulgrave area.

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