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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.
D.A. Landry Director
Communications, ECBC
902-564-3617 1-800-705-3926 dlandry@ecbc.ca
Greg
Lynch Partner, Laurentian Energy Corporation c/o Cape Breton
Beverages Sydport Industrial Park 902-564-4536
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