It looks like Jack R. MacDonald may be leaving another lasting legacy to downtown Elora.
MacDonald was a benefactor who, during his lifetime, made donations in excess of $300,000 to the former Village of Elora, and post-amalgamation to the Township of Centre Wellington for the Elora urban area.
His father, Fredrick MacDonald, was born in Elora in 1885 and died in July 1970.
Upon Jack’s death in 2013, most of his estate (roughly US$187 million) went to the Jack R. MacDonald Charitable Trust, of which Centre Wellington was one of five recipients.
Those funds are administered through the Bank of America.
Centre Wellington and the Seattle Unity Church each receive $25,000 annually adjusted for inflation.
The other three beneficiaries: Seattle Children’s Hospital Foundation, The Salvation Army, and the University of Washington, each receive a portion of the remaining net income from the trust.
The latter three beneficiaries want to reform the trust to avoid a 2% excise tax on investment income and proposed providing a one-time lump sum of roughly $1.5 million to both the township and the church in lieu of annual payments. The church has accepted the offer.
Centre Wellington managing director of corporate services Wes Snarr recommended the township enter into a non-judicial binding agreement to reform the Jack R. MacDonald Charitable Trust.
“It is a very good deal,” he said. “As an accountant, the bottom line is that it is a choice between $1.5 million now – or roughly $25,000 per year for the next 60 years.”
Considering the current exchange rate, Snarr noted the amount today would be just under $2 million in Canadian funds.
Snarr recommended the money be used to clear the internal loan for the Elora civic centre accessibility improvements and the balance used for downtown Elora improvements, including the construction of the Victoria Street pedestrian bridge.
He said this would free up $1 million allocated for the pedestrian bridge, which could then be considered in the 2017 budget process.
“This a great News story for the community,” said Centre Wellington CAO Andy Goldie.
He stated there are a long list of items to accomplish within the township’s capital budget.
“I think it is very prudent for us to look at this as a one-time expenditure.”
Goldie also stressed one of the key requirements of the trust funds is that it must be specifically spent in the village of Elora.
“I think this is a huge opportunity for the village of Elora,” said Goldie. He added the money will allow the township to wrap a number of downtown projects together in West Mill Street.
“This is a unique opportunity for this community … and a big thank you to the MacDonald Trust for even considering Centre Wellington for this gracious donation,” he said.
Goldie noted original recommendations for work included additional streetscaping and burying electrical services on the north side of West Mill Street.
Councillor Fred Morris had some concern with the numbers provided.
“I’m not entirely comfortable carving up a $2-million windfall based on a 10-minute discussion,” said Morris, who asked if it would be more prudent to think long and hard on how to utilize the money before simply allocating away.
Goldie noted there were concerns raised within the community over tax dollars being used to fund the building of a pedestrian bridge. As well, he said council has been considering the use of alternative funding sources to offset capital projects.
Councillor Mary Lloyd agreed it is a large endowment coming to the community.
“But I think we have to be mindful these funds are specifically designated to Elora and that an opportunity such as building a pedestrian bridge which may be named the ‘MacDonald Walking Bridge’ would pay respect to the man who made a significant gift to the community,” said Lloyd.
“This is an opportunity to turn $1 million into a beautiful walking bridge … and not take it out of the municipal tax base.”
Morris said there was no dispute in where the money is to be used.
“The fact we are getting this in a lump sum doesn’t mean we should go ahead and blow it all.” He had no issue paying off the township loan, but as to the remaining $1.8 million “I’m not ready to carve that up right now.”
Councillor Stephen Kitras said he had lobbied to build the pedestrian bridge, but he too had reservations about spending the money so quickly.
Mayor Kelly Linton said, “We have a one-time opportunity [to take] this off the tax base and create a legacy project … I can’t imagine a project being any more suited to a gift of this nature.”
