Opposition takes swings at 'sweetheart deal' for P.E.I. golf course

The Official Opposition used every club in the bag taking shots at a deal the P.E.I. government announced in January to sell off a provincially owned golf course to businessperson Don MacDougall.

"Lots of Island business people would have taken a free golf course from this government," said PC MLA Matthew MacKay during question period Wednesday.

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Under the terms of the deal disclosed by government, MacDougall received the Mill River golf course, fun park, and campground, together with the Rodd Mill River Resort.

He also received $7.6 million taxpayer dollars over 12 years to pay for capital improvement costs and offset potential operating losses.

Properties assessed between $8 and 9 million, Tories say

In exchange, MacDougall paid $500,000 for all facilities and land and agreed to spend a minimum of $1 million in renovations and upgrades, according to a government media release. The province also said it had to forgive $1.8 million in government loans to Rodd Hotels to secure the sale of the resort.

"To the Minister of Economic Development and Tourism on his sweetheart Mill River deal," MacKay continued. "Why did you decide to sell a 90-room full service resort with an 18-hole championship golf course, indoor pool, 90- foot waterslide, whirlpool, sauna, squash courts, tennis courts, restaurant and lounge, 72-site campground, and fun park, and all the land for $500,000 when your own assessment for the property was worth between $8-9 million?"

In the House and to reporters afterwards, Minister of Economic Development and Tourism Health MacDonald said the properties were losing money and the province simply had to get rid of them.

Government had little choice: minister

"We didn't have much of a choice," he said. "The property would eventually close, and there would be 100 jobs gone, $1.7 million in wages. Or we could re-invest, over the course of time we'll take the taxpayer off the books and allow a new owner-operator to come in there … and rebuild that property up to what it once was."

In 2012, government issued a request for proposals looking for interested parties to purchase, lease or manage any of its four provincial golf courses. According to the tender package, the Mill River golf course was expected to lose $214,900 in 2011-2012, and a similar amount the following year.

In a January 2017 media release, government stated the Mill River properties, not including the resort, were expected to lose $6.6 million over the next 12 years.

Investment will create 'uneven playing field'

"You didn't do any analysis to see how it would impact the market place," MLA Brad Trivers said of the ongoing funding agreement with MacDougall. Trivers' district includes the Resort Municipality of Cavendish.

"This sweetheart deal has created an uneven playing field by heavily subsidizing one business to the tune of millions of dollars for the next 12 years."

Government was also criticized over the accusation from the Mi'kmaq Confederacy that government failed in its duty to consult with First Nations about the sale of Crown land. The Confederacy has applied for a judicial review of the sale.

Interest in other courses, says minister

Today the Mi'kmaq Confederacy said no court date has been set, but it expects its application to be heard sometime this year.

In the meantime, government says this deal has concluded and more could be in the works.

"We're continuing to shop Crowbush, we're continuing to shop Brudenell golf course as well. There is some minor interest in those," said MacDonald.

"The people of P.E.I. have been telling us for years to get out of the golf business."