Northam Industrial Park is managed by the Town as a separate entity and able to provide a dividend to the Town; this is like Holdco which is the holding company for the Electricity and Water Utilities. In 2017, the Town was paid $241,000 from its investment in Northam. In a report to be provided to Council at their Committee of the Whole meeting on September 4, there is no prediction of how much of the large profit will go to the Town. The profit before amortization for 2018 is expected to be $2,700,000 but most is expected to be paid to reserves (already $1,000,000) as “suggested in the soon to be completed asset management report”. A good part of the reason for the high profit is the absence of a mortgage since the last payment of $104,352 per month was made in March 2018.
Although the report for the first half of 2018 does not say where previous dividends were spent, a Cobourg News Blog report in August 2017 gave a breakdown from an earlier report:
From 2003 to 2016, the Park paid the Town dividends totaling $5,062,150 – so what has the Town used this for?
- Long Term Debt on Infrastructure projects – $1.5M
- Physician Recruitment – $235K
- Hospital Donation – $300K
- Tannery costs (remediation, demolition) – $1.5M
- Capital Projects – $1.5M
The Park houses some notable businesses: Weetabix and Horizon Plastics (building 3) as well as the Town’s Works, Parks and Recreation Operations (building 7), Venture 13 (building 13) and a Lakefront Utilities Service Garage. There are also other businesses not listed here.
- Northam Industrial Park almost paid off – 2 December 2017
- Northam Park has Proved to be a Good Investment – 1 August 2017
- Venture 13 Grand Opening – 18 May 2018
- Northam Industrial Park Financial Report – June 30, 2018 by Town of Cobourg Treasurer Ian Davey