Heather Wright/The Independent

Lambton Shores Mayor Doug Cook was blunt.

Cook, a former banker was one of the Lambton County councillors asking tough questions about the Sarnia-Lambton Research Park’s request to defer the organizations $15 million in loans for five years.

“You’re bankrupt; you’re insolvent; you can’t carry your debt load, but now were asking
council and our taxpayers to consider it,” said Cook after Tom Strifler, former research park executive director and Dr. Dave Muir who over sees the hub for Western University, made their pitch to council.

Research park officials came to council last year after a large number of tenant leases expired, leaving the organization without the cash flow to operate. At the time, Lambton county councillors agreed to provide a loan to the organization, totalling $900,000.

Strifler says since then occupancy at the Modeland Road facility is up five to 10 per cent with 70 per cent of the building now occupied generating $730,000 in new lease revenue. Muir added he was pleased to see the uptick in new tenants.

But, there are still financial problems. “Our debt is not larger than since pandemic…(but it is ) a heavy load; we’re looking for solutions,” said Strifler.

The research park board of directors hired a consulting firm to help deal with the financial problems. One of its main solutions is to secure debt relief so it can reinvest in the facilities, grow its revenue and invest in the future.

The research park board suggests that debt relief come from the county.

Strifler asked county councillors to consider consolidating its debt to obtain lower interest payments, then deferral payment of the principal and interest payments for its nearly $15 million debt, with the county and its taxpayers picking up the tab.

The board also wants the county continue to pay the $661,000 in operating funds it normally contributes.

County Treasurer Larry Palarchio said taking on that debt for the research park would amount to a 1.4 per cent tax increase.

Cook, who declared the research park as bankrupt, says he’s not likely to vote in favour of another bail out. And he wasn’t alone.

Brooke-Alvinston Mayor Dave Ferguson says approving a five-year deferral of the Research Park’s debt would “lock in one council and dump on the next” that the financial burden.

Instead of bailing the research park out again as the consultant suggested, Ferguson says the county should determine “what is the park worth as an asset” and “should the county look at selling it to recoup some of its costs.”

Strifler responded; “We see a light at the end of this … where the cost is no longer a burden to the
county… and you should consider that.”

Strifler says the park will create over 1,000 new jobs in the next five years and generate $14.8 million in taxes, if all goes well.

The research park board estimates it will have “an improved financial outlook” by 2030.

Councillors agreed to get an appraisal of the building before discussing the research park’s fate during budget deliberations next spring.