Council approves agreements for container terminal and logistics park development
PricewaterhouseCoopers reviewed the transaction on behalf of municipality
SYDNEY, NS – Agreements between the Cape Breton Regional Municipality and the developers of the proposed Novaporte container terminal and Novazone logistics park have been approved.
The proposed agreements were reviewed by the Montreal office of PricewaterhouseCoopers and the findings presented in a report to council by Richard Deslauriers, PwC’s Managing Director, Project Finance and Public-Private Partnership.
Deslauriers’s letter to council concluded that the transaction “meets CBRM’s goals and is a low risk approach for encouraging economic development”. The international firm was hired by CBRM to assess the reasonableness and adequacy of the proposed transaction of a port site lease and logistics site purchase. CBRM’s goals in the transaction are to recoup its investments, secure future tax revenue and encourage job creation.
Council reviewed the proposed agreements and PricewaterhouseCoopers’s analysis of the transaction and voted 12-1 to proceed with ratifying the agreements.
“I’d like to commend the negotiating team members for the work they did to ensure that Cape Breton Regional Municipality recovers costs and will benefit from the port’s success,” said Mayor Cecil Clarke. “The acceptance of these agreements today allows the developers, Sydney Harbour Investment Partners, to proceed in the marketplace with the terms of the arrangements with the land owner, in this case the municipality, finalized.”
Detailed terms of the agreements are not publicly available at this time as it would harm the project’s competitive position and the negotiating position of the private sector developers. However PricewaterhouseCoopers’s analysis recognizes the municipality will recoup its investments, collect tax revenue that covers the full cost of services provided, as well as additional amounts which reflect the project’s success going forward.
Attached is the letter from PricewaterhouseCoopers and the motions passed by council.
Office of the Mayor
Cape Breton Regional Municipality