Future uncertain for Charlottetown, Summerside development corporations

The future of P.E.I.'s two regional development corporations is uncertain after the province announced it will take steps to assume total control of the organizations.

A government-commissioned review of the Charlottetown Area Development Corporation and Summerside Regional Development Corporation recommends a renewed mandate with clear goals of economic growth.

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The organizations were established decades ago to pursue urban economic development. The province is the majority shareholder in both corporations, owning 83 per cent of CADC and 75 per cent of SRDC.

The review shows a shift in organizational focus over the years from strategic economic development to managing assets, according to a news release. Among the properties CADCs managesare Harbourside Complex, Peakes Wharf and Marina, Founders Hall, the CGI Building and the Invesco Building.

Waiting for word on what it means

SRDC general manager Arnold Croken said he is waiting for word from the province on what the review means for his organization. CADC general manager Ron Waite directed any questions to the P.E.I. Department of Economic Development.

Minister Heath MacDonald was unavailable for comment on Thursday, but Premier Wade MacLauchlan issued a statement Wednesday that said "as a result of this review, provincial officials will explore a process to have the shares of SRDC and CADC consolidated under provincial ownership.

"Further, government will work with municipalities, community and business leaders to map out economic development and growth scenarios for the province that will include consideration of our economic geography tied to urban development and related infrastructure needs."

Charlottetown currently owns an 18 per cent stake in CADC, and the Town of Stratford two per cent. Those shares would be sold back to the province.

Redeveloped waterfront

Charlottetown Mayor Clifford Lee said CADC has done a "tremendous job,"especially with redeveloping the waterfront.

But he said this is an opportunity to explore the best way forward to attract new business to the city.

"The reality is the business community have been critical of CADC for a number of years because they perceive the Charlottetown Area Development Corporation as being nothing but a landlord generating revenue to pay their operating expenses and as a result have now become competition for private businesses," Lee said.

"Is that a fair characterization? I'm not sure it is, but the reality is that perception is out there and that needs to be addressed."

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