Show us the Mill River deal, says P.E.I. Opposition

The Official Opposition is asking the P.E.I. government to release documents related to the sale of the Mill River golf course as a way to show government made the best possible deal for taxpayers.

On Thursday, PC MLA Darlene Compton got the ball rolling by tabling a document of her own: an expression of interest from Halifax-based Castle Hill Capital Inc. in response to the request for proposals issued by the P.E.I. government in 2012 looking to offload four provincially-owned golf courses.

• Mill River resort, attractions, to be sold to Blue Jays founder
• Opposition takes swings at 'sweetheart deal' for P.E.I. golf course

During question period, Compton said there were seven companies that responded to the RFP. And she said she'd been told most of those were companies looking to lease the courses, not buy them outright.

"This would have preserved the asset and this government wouldn't have had to resort to a fire sale to take Mill River off the budget book," she said. 

"Why did you not bother to cycle back to some of those interested groups before dumping Mill River in this sweetheart deal?" 

Halifax firm wanted to lease all four courses

According to the expression of interest from Castle Hill Capital, it was pitching a proposal it said would provide "a major economic impact to the communities and the province — it will remove the operational liability of the golf courses and provide the province with a percentage return" upon the sale of residential lots.

Lyman Langille of Castle Hill told CBC News his company invested more than $100,000 developing its proposal and conducting audits of the golf courses, and was prepared to assume management of all four courses while allowing the province to maintain ownership.

Langille said he left the process "very upset and bewildered," with the feeling his proposal hadn't been seriously considered.

He said only three of eight members of the provincial review committee attended the company's final pitch session.
"The province said they were interested in doing something, but they weren't," he said. "They were gathering information."

In January, government announced a deal to sell one of the courses, along with related properties, to businessman Don McDougall. Under the terms revealed by government, McDougall paid $500,000 for the Mill River golf course, fun park, campground and the Rodd Mill River Resort hotel.

Table the contract, says Opposition

But the deal includes a net loss for taxpayers of roughly $9 million, with grants provided to McDougall for capital construction and to cover future losses, and $1.8 million worth of provincial loans forgiven to Rodd's Resorts in order to purchase the hotel.

P.E.I.'s Economic Development Minister Heath MacDonald has justified the deal as providing a timeframe to get taxpayers off the hook for annual losses at the three government-owned properties that totaled $480,000 in 2015-2016.

"It's continuance to lead by good leadership," he told the legislature on Thursday. "It's to take the taxpayers out of these – let the private sector step in like the good deed of Mr. McDougall; let him run it as a professional. Let him bring his skills to West Prince and let West Prince grow. That's what it's all about; creating opportunity in rural PEI."

"You keep talking over and over again about what a great deal this is," Compton replied. "It's a great deal. We hear it over and over again. If it's such a great deal, why won't you table the contract?"

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