Council here has voted to tell a Drayton businessman it will not pay his costs for working around hydro lines when he made facade improvements to his downtown business.
Ken Thompson, of Heritage Funeral Homes in Drayton, had asked council last month if it would cover costs of $1,589 he incurred from Hydro One. Those lines were once owned by Drayton Hydro, but it was sold to Hydro One years ago.
Because of safety regulations, Thompson had to pay to move or isolate the lines during the work, and he suggested there might be some funds left over from the sale of Drayton Hydro to pay for that.
Clerk Patty Sinnamon provided council with a report on Nov. 8.
She said Drayton Hydro was sold in 2002 for $946,000, and most of that money was used in such things as transportation reserves for Drayton, plus sewer and water expenditures for the village.
“I would confirm that the balance in the reserve … is $20,000,” she told council in her report.
She wrote, “It was determined at the time that the sale proceeds would be put into a discretionary reserve and would be used to benefit the residents of Drayton as a whole (ie. – parks, recreation projects, etc.) and would not be apportioned to individual property owners.
“Council will need to determine whether it is appropriate to utilize these funds for the benefit of a private property owner.”
Sinnamon pointed out the Municipal Act specifically prohibits a municipality from “assisting directly or indirectly any manufacturing business or other industrial or commercial enterprise through the granting of bonuses including giving or lending any property of the municipality, including money.”
She added, “The purpose of this section is to prevent the municipality from giving unfair assistance to a business enterprise to the detriment of the local taxpayers.”
Sinnamon said there is an exception to that rule: if a municipality has adopted a community improvement plan, that allows it to create a loan or grant program for facade improvements.
Towns such as Minto have that program, but Mapleton does not.
Sinnamon recommended the township pay the $1,589.
Mayor Bruce Whale asked if Thompson’s other request regarding driveway improvements was available. Public works director Larry Lynch said his report is not yet complete.
Councillor Andy Knetsch said if council approves payment to Thompson, “you open the door for others to come forward and apply.”
Sinnamon told him, “Absolutely. I know of one already.”
Knetsch sympathized with Thompson’s plight and said because of the situation, Thompson is “caught between a rock and a hard place.”
He said improvements to the facades of the funeral home and adjacent variety store “are beautification for their benefit and the town and the municipality … Is there any way of covering them?”
Sinnamon said it could come through a community improvement plan and guides for such things as colours and materials to be used.
“We have not done that,” she said.
Councillor Neil Driscoll said “for $1,500, what they did for the downtown and what we spent [on downtown revitalization] isn’t going to put us out.”
Whale said council has to determine if the request is the responsibility of the municipality.
He added, “If you open the door, where do you close it?”
Councillor Mike Downey said there is no question the work was beautification, but “We were never part of any negotiations” and the hydro lines are not township property.
He concluded, “It’s not up to the municipality” to pay for safety precautions required for work on private property.
When council voted on the motion to pay the bill, councillors Driscoll and Knetsch were in favour, and Downey and councillor Jim Curry were opposed. Whale broke the tie by voting against the motion, defeating it.
