Monday, February 25, 2008

Update to February 25

Following is a brief report of the Board of Directors’ actions to date, since the November 4, 2007 AGM.

Following the November AGM we advertised in the Cape Breton Post, the Halifax Chronicle Herald, the Reporter and the Inverness Oran for Expressions of Interest for development of the Johnstown property.

The Board agreed that Expressions of Interest received would be evaluated by:

  • type of development – residential, commercial;

  • development attributes – environmentally friendly, architecturally compatible with setting, sustainable;

  • contingent on development;

  • community access – access to the wharf by members of the local and JCDC community; and price.

A small number of individuals/groups approached members of the Board with questions but we did not receive any formal submissions. However, it become clear that the land could be sold quickly if JCDC members decide to sell it outright, i.e. without covenants.

Prior to the November 4, 2007 AGM, members of the Board had approached several developers in Halifax to determine if development of the site was a possibility. Board members have also been in contact with others who might be interested in working as part of a team to develop the site. This type of approach to development will require time to establish a development plan and build a project team, that would include a developer, architect, civil engineer and construction contractor.

The Board has written League Savings and Mortgage with a request to have interest accrual and mortgage payments waived for two years. This would greatly reduce our monthly operating costs and will buy us the time we need to formulate and execute a responsible development plan for the property. In the event of sale of the property, the remainder of the mortgage would be paid off.

In light of the circumstances, our recommendation is that the Board should:
  1. await response from League Savings and Mortgage regarding our request for a 2 year waiver of the mortgage payments and interest accrual;
    continue to pursue developers for the land;
    provide a further progress report to the membership and broader community by June 1, 2008.

Please feel free to write with suggestions or to express concern over this course of action.