IHS appeals to Alberni over budget shortfall

Alberni's IHS may terminate its contract with McLean Mill if it can't work a deal with the city to cover a $70,000 budge shortfall by fall.

The matter regarding McLean Mill’s $70,000 budget shortfall hasn’t reached the end of the tracks just yet.

Port Alberni City Council last week authorized city staff to issue the mill’s first cheque in June. City Manager Ken Watson was also tasked with meeting with the society to discuss the mill’s business plan and city assistance options.

Industrial Heritage Society members and city officials have initiated the discussions.

The issue arose when council adopted the mill’s budget. There was a gap in communication when the Industrial Heritage Society requested an additional $70,000 for insurance, track usage, utilities, and alarm monitoring.

The budget was approved for $235,000, which didn’t include the extra $70,000.

At council’s May 28 meeting, city economic development manager Pat Deakin admitted to being the source of the communication breakdown.

“I dropped the ball on that one,” he said.

The mixup could have deeper ramifications. In a May 23 letter to council, IHS director Hugh Grist said the parties can choose to deal with the issue now or be compelled by necessity to do so later.

If revenues are in a deficit position by mid -September “we will have to return to council for assistance,” Grist wrote.

“The society is not in a position to apply for loans at financial institutions to cover these possible deficits.”

If the mill’s future doesn’t appear better by September, officials will be forced to pull the pin.

“The society will invoke clause 2.2 of the contract and give 180 days notice of termination,” Grist wrote.

reporter@albernivalleynews.com

Just Posted

Alberni-Clayoquot Regional District considers cannabis use

Public will have say on new rules in September, before marijuana use becomes legal

Fire crews ‘mop up’ Arbutus Ridge fire in Port Alberni

Smoky Skies Bulletin issued for Vancouver Island

Alberni’s Proteau back on top after another battle with Stouffer

Mount Brenton Ladies’ Amateur Golf Tournament has become a tale of two players

Battle for Alberni Valley Bulldogs roster spots begins

Main camp opens this week at Weyerhaeuser Arena

ARTS AROUND: Join watercolour workshops in Port Alberni

Victoria artist Joanne Thomas will provide beginner and advanced classes

White Spot records B.C. Pirate Pak record day

Popular B.C.-Alberta event raises more than $116,000 to send kids and adults to Zajac Ranch

Suspect in Spiderman suit steals camera on Vancouver Island

Suspect in red and blue “onesie” caught on surveillance footage breaking into truck in Nanaimo

B.C. team stays alive in Little League World Series after another nail-biter

Surrey-based squad scored a 6-4 win over Mexico reps in Williamsport on Monday

Zeballos wildfire not getting any closer to town – BC Wildfire Service

Authorities optimistic about Zeballos; choppers grounded due to heavy smoke

Kids, seniors at risk as smoke from distant fires hangs over parts of B.C.

B.C. Centre for Disease Control says children’s lungs don’t fully develop until about age 10

B.C. mother charged in 7-year-old daughter’s death appears in court

The 36-year-old mother, of Langley’s Aaliyah Rosa, has been charged with second-degree murder

VIDEO: Teen soccer phenomenon Alphonso Davies to visit B.C. kids camp

The 17-year-old Vancouver Whitecap player is one of the youngest players in MLS history

New plan to lift more than two million people past the poverty line

Anti-poverty strategy will aim for 50 per cent cut in low-income rates: source

Most Read