MANITOWANING—Assiginack taxpayers will not be on the hook for the $90,000 municipal portion of a provincial funding grant to assist in the efforts of the S.S. Norisle Steamship Society, as last week’s page 3 story ‘Assiginack council uneasy with Norisle grant application’ suggested.
The article caused a stir in Manitowaning, according to SS. Norisle Steamship Society Chair Dave Ham, causing him to call The Expositor to provide clarification on the matter.
“We didn’t want the township to pay a penny, and that’s been the motto all along,” said a concerned Mr. Ham, himself a former councillor and reeve of the municipality.
Mr. Ham explained to The Expositor that someone from the society is willing to gift the 20 percent municipal contribution of $90,000 to Assiginack in exchange for a charitable tax receipt.
“A prime objective of the grant is to update the business plan conducted by the Economic Planning Group of Canada in 2010 to determine the cost and viability of returning the S.S. Norisle to the Great Lakes as a steam heritage passenger cruise ship,” Abby Stec, S.S. Norisle Steamship Society executive director, told The Expositor. “It was suggested by senior officials at the Ministry of Tourism, Culture and Sport at a Queen’s Park meeting in August of 2015 that this document would be vital to conducting the due diligence required to make any financial decisions related to the future of Norisle. It was recognized that significant effort had gone into the planning and preparation of the business plan, however regulations and costs affecting the business plan demonstrated the need to update the budget and feasibility.”
“A budget of $291,000 was developed for this phase of the project, which is necessary in developing the foundation business structure to initiate the future primary fundraising efforts,” Ms. Stec continued. “This was determined with input provided by various consultants and ministry staff. It is important to note that 50 percent of the total costs would be supported by the Tourism Development Fund under an approved application, and the remaining 50 percent would be a combination of 30 percent in-kind support, and a 20 percent contribution to be made by the Township of Assiginack.”
Ms. Stec added that the society understands and respects that Assiginack council has both a responsibility and an obligation to its taxpaying constituents and so Paul Bonwick, president of Compenso Communications, generously indicated that he would provide a tax deductible cash donation to Assiginack in the amount of their entire 20 percent contribution, offsetting any financial responsibility by the municipality and eliminating any expense on behalf of Assiginack taxpayers.
Mr. Ham said council has “the jitters” about the donation, but he’s unsure why. “We’re trying to do them a favour,” he added. “The Friends of the Norisle have all along been working with council, following its request to have the Norisle removed. We’ve got a home for it, but we need the council on board.”
Mr. Ham called the support the project has been getting from across North America “phenomenal.”
“There have been many thousands of volunteer hours invested in preserving this important maritime treasure,” the president continued. “There has also been over one million dollars invested in the refit project to date from various supporters, including personal private donations, private sector support and provincial and federal government support.”
The group is asking council to reconsider their position on not moving forward with the grant.
“The scrapping of the Norisle would cost the Township of Assiginack hundreds of thousands of dollars, while the solution being presented by the society continues to represent the most responsible and economically feasible plan designed to preserve heritage, create new jobs and support tourism and the Great Lakes cruise industry,” Ms. Stec said.
The Expositor spoke with Paul-Noel Murphy, Ontario manager, communications, with the Canada Revenue Agency (CRA).
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He explained that registered municipalities are considered qualified donees and can issue official donation receipts for gifts they receive from individuals and corporations. As Mr. Bonwick is not receiving anything in return, the CRA said the municipality is free to issue the receipt and accept the funds.
Assiginack Mayor Paul Moffat said that the concern from council is that the municipality is the one to apply for funding on behalf of the Norisle, which is municipal property, not an outside organization.
“It’s our boat; we’re responsible for it and want to do whatever we can to help,” he added.
Mayor Moffat explained that council is “not comfortable” with the way things are going and is willing to apply for funding on its own.
“We’re certainly not trying to thwart their efforts, we just think that the best way forward is to have council do any application on behalf of the Norisle,” the mayor reiterated.
Mayor Moffat and S.S. Norisle Steamship Society president Dave Ham were scheduled to meet to discuss the matter on Tuesday of this week.
