A group of Palmerston business owners is asking Minto council to reconsider a decision to sell serviced industrial land here to developers of a gas bar and a Tim Hortons.
A petition signed by a dozen business owners expresses opposition to what they consider municipal subsidization of the new businesses.
“While we welcome a Tim Hortons franchise, or any other business for that matter, our concern is that the Town of Minto has inadvertently, with good intentions but poor foresight, sold serviced land at significantly below market value, thereby creating an uneven playing field for your current, committed business owners of Palmerston,” states the petition presented to Minto council on March 4.
“These Minto business owners have shown their long-term commitment to our community by investing in Palmerston, as well as its downtown core, which, as you all are aware, is struggling.”
In December, council authorized the $30,000 sale of two one-acre lots at the corner of Highway 123 and Minto Road to a numbered Ontario company for the development of a Tim Hortons. The land is located at the entrance to the Palmerston Industrial Park.
A report from CAO Bill White stated the price of $15,000 per acre “is acceptable in this situation given the minimum distance separation requirements of the lots reduce the site’s buildable area.”
At the Feb. 3 meeting, council authorized the sale of a commercial lot fronting on Wellington Road 123, west of Minto Road, in the industrial park to “Sarabjit Mehat In Trust” for $25,000 for the gas station development.
In their petition, the business owners contend “the asking price for un-serviced land next to a Tim Hortons in a neighbouring rural community is $800,000.”
The petition’s author, Harj Gill of Stop 23 in Palmerston, told the Advertiser the $800,000 asking price referred to is a 1.4-acre piece of privately-owned land next to the Tim Hortons on Highway 87 on the outskirts of Wingham.
The business owners feel the Tim Hortons “will suck the restaurant business from the downtown core,” and other businesses in the community.
“Recently, and very courageously, our local pharmacy spent some money to open a cafe,” the petition states.
“When they start losing business, it will affect the decisions of any new person considering opening a business in Minto, or in particular, Palmerston’s downtown core.”
The business owners believe the developments are inconsistent with the intended use of the land, which “was set aside as an industrial park for the sole purpose of attracting industries which would provide good-paying, full-time jobs.
“We, as community business owners and investors, support your efforts to improve the living and business climate in the Town of Minto, but in this instance, we believe you have been short sighted,” the petition states.
“Our suggestion and advice is to rescind these two sale agreements if it is at all possible. It is a matter of principle: supporting our long-term business members who have been supporting our community and will continue to support our community in the future.”
Gill stressed in a telephone interview the petitioners have no problem with new businesses coming to town, but don’t feel the town should be subsidizing them.
“A company the size of Tim Hortons, an international company, does not need subsidized land,” he said.
At the suggestion of councillor Ron Elliott, the petition was referred to the town’s economic development committee “for their consideration and to come back with a recommendation of some sort or some comments.”
In a March 10 email to the Advertiser, White stated the author of the petition has been invited to attend the economic development committee meeting at which the matter will be discussed.
White also noted:
– Minto’s industrial land program has been around about 10 years and goes back about three councils prior to this one;
– it is intended to bring investment to the community and has resulted in businesses like Farm Fresh, Phoenix, MSW Plastics (previously Ebcotech), SARJ Equipment and NRStor;
– existing businesses benefit from supplying new companies with goods and services;
– both the Harriston and Palmerston industrial parks will expand in 2014 as there is a need for smaller lots for small business development;
– the three lots sold for Tim Hortons and a proposed gas bar are on the edge of the Palmerston Industrial Park, and have been zoned commercial for nearly 10 years; and
– the land sold for between $15,000 and $25,000 per acre, “which has been the town’s stated price for some time.” Proceeds from sales cover servicing costs.
White stated “having higher-traffic highway commercial uses, not really suitable for downtown, fronting on a busy county road makes sense from a planning perspective.”
He also noted the new uses will serve business in the industrial park, people in the community, the travelling public and “will bring people into this part of Minto that might not otherwise come.”
