The Moose Jaw Construction Association (MJCA) is pleased that city council withdrew its demand of a $200,000 non-refundable deposit from a proposed land agreement with Canadian Tire.
The association sent council a letter on April 27 — in the morning before council’s meeting that evening — expressing its concern about the non-refundable deposit. The MJCA thought council’s decision was “bad for business and (would) reflect poorly on the city.”
Justin Hoyes, MJCA president, pointed out in the letter that Canadian Tire wanted to postpone its $20-million project on Thatcher Drive East due to the coronavirus pandemic. Since the MJCA and its members rely on council to facilitate growth opportunities, a “decision like this breaks trust and negatively affects the ability of the city to create future business partnerships” and “is contradictory to your message that the City of Moose Jaw is open for business.”
During its April 27 regular meeting, council voted 5-2 to have the city clerk and mayor pursue the original revival and amending agreement with Canadian Tire, without the non-refundable deposit.
Councillors Heather Eby and Brian Swanson were opposed.
“At the MJCA, we’re definitely happy that the decision was overturned and that they’re proceeding with the proposed agreements for the extension, so it’s good news,” Hoyes told the Moose Jaw Express recently.
The concern the association had was about more than just the non-refundable deposit, he continued. To ask for the money retroactively “kind of leaves a bad taste” in the community’s mouth.
“I’m not arguing (against) a non-refundable deposit. I think that’s a good way to kind of seal the deal, but it’s just, late in the game in the middle of a pandemic. I think that’s where the rest of us were like, ‘ugh,’” Hoyes chuckled. “It doesn’t look so good from the outside.”
The mission of the association’s board is to provide value for its members, so a proposed $20-million project would fulfill that mission, he explained. While Canadian Tire won’t award the entire project to community tradesmen or suppliers, the opportunity exists for that to happen. For example, there could be paving, concrete, plumbing, and electrical work that local suppliers could complete.
Council’s request for the non-refundable deposit “blew up in their face a bit,” Hoyes remarked. He thought the deposit was probably a must-have in this case, but council should have re-negotiated the original agreement in good faith.
“Canadian Tire, as big as they are, they’re still in a position where they’re hurting. It’s just bad optics,” he added.
Canadian Tire is a billion-dollar company that is looking to invest millions of dollars here with this project. Moreover, it already has three businesses firmly established in the community, said Hoyes. He thought it was important to be patient with this potential deal since it doesn’t just happen overnight, even if it has taken four years. If Canadian Tire is willing to come back to the table, council would be foolish not to entertain that.
“I don’t think there is going to be a triple-A type client like that knocking at our door anytime soon,” he stated.
Other big-box stores could come to Moose Jaw, although any business is good business for the community, Hoyes added. He simply wanted Moose Jaw to encourage more deals and have other big players invest here.
