RTE Bylaw 7143 - Ruttan's ruination

EDC Snubbed

Either the EDC is being snubbed or Ruttan wants desperately to throw good money after bad. Either way Bylaw 7143 – the Revitalization Tax Exemption Bylaw shows bad timing and a clear lack of leadership by Mayor Ruttan

This is not a good way to welcome our newest civic leader, the Nanaimo Economic Development Corporation's CEO, Susan Cudahy.  If I were she, I'd be wondering if Nanaimo has any manners at all.

A city like Nanaimo has few real Economic Development tools to work with. One was grabbed from Susan Cudahy last Monday night, further complicating her job by giving away 10 years of tax revenue on all new hotel/motel developments over $2 Million

I doubt Susan has had time since assuming her position Oct 14, to even meet most of the people in her new world, let alone get to know them or set up any systems, structure and procedures. I wonder if she has even had a board meeting let alone set a game plan, strategy or goals. Sure, she has the Economic Development Strategy Report. This is about as useful as having a recipe but no kitchen, pantry, utensils, garbage can or workbench to even begin to work with. Then before she can even start, City Hall pulls parts out of the stove.

John Ruttan did a good thing setting up the EDC. I am really wondering now if it was dumb luck. Does he even know what it’s for? The EDC was to be the Economic Development “decision making machine.” The Mayor & Council would no longer have to squirm under the pressure of making decisions like this that they are ill equipped to make. Eliminating 10 years of tax revenue from New Developments could amount to a lot of money. Is it smart? Who picks up the tab – the taxpayer? Is it part of a plan? Or is it an act of desperation by a mayor grasping at straws to save a bad idea.

Please let me be clear here – giving away 10 years of taxes may well be the best idea since sliced bread. I'm simply wondering why we are we not letting the expensive baker we hired make that call. Let her decide if we need it, if it makes sense, if it is consistent with or integral to our Goals and Strategies moving forward. After doing nothing for two years waiting for the EDC to lead the way, why do we give the new CEO a “Hilliard Graves hip-check” as she is coming out of the gate for her first shift on the ice.

A sign on CNN founder Ted Turner's desk reads - Lead, Follow or Get the Hell out of the Way. Mayor Ruttan has jumped right in the way on this one either by design or neglect. He either wanted this tax reduction bylaw or neglected to stop it. If it wasn't his idea, then he certainly should have stopped it.

As far as the actual RTE is concerned I really feel that Volker Grady, the manager of the Coast Bastion Hotel has the right idea – people come to stay in his rooms not because they are empty but because they have a reason to; they have something that interests them and draws them here. I learned that at any given time there are 12 “interested parties” monitoring what is going in in Nanaimo to see if there is a reason to build a hotel. If the demand is there, one will get built regardless of whether there is a “SALE” on the tax and land.

I think this is yet another example of the inappropriate use of a tool by Nanaimo council. The EDC has been severely snubbed and is owed an apology. I’d support Susan if she were to be brave and say to staff, council and the Mayor, “Please put the RTE bylaw down and step away before you hurt yourself”