Motel owner stuck with 'unfair' $87K bill.

Thessalon -- It was not a very Merry Christmas on Dawson Street in Thessalon.

In the town of 1,300, about 80 kilometres east of Sault Ste. Marie at the junction of Highways 17 and 129, some property owners are being asked to shoulder what they call a disproportionate and unacceptable share of a $1.562-million infrastructure project.

The owner/operators of the Carolyn Beach Motor Inn (CBMI), Andrew and Susan Weigel, and Stan Poulton, a Toronto developer with plans for his property on Dawson St., have been served with bills for $86,770 and $129,610 respectively. They have 10 years to pay.

By comparison, the town is chipping in $117,000 plus $52,000 for the municipally owned Lakeside trailer park.

Construction was completed in June. The town firmed up all of the grant money it would be receiving during the first half of October. The Northern Ontario Heritage Fund (NOHFC) chipped in the lion's share of $998,358 and FedNor paid $130,641. Shortly thereafter, Mayor Donna Latulippe wrote letters to the area property owners with the happy news.

The Weigels in particular have been vocal in their objection to being asked to cover over 26 per cent of the cost of the project not covered by grants.

The road extension only took the sewer and water lines to the corner of their property, so they have already had to pay another $62,000 to extend their own lines over 1,000 feet to the main. They have no frontage on Dawson St.

The Weigels and Lincoln North, head of the local Taxpayers Association, are also angered and unnerved by the town's alleged lack of transparency through this entire process.

They have repeatedly requested documentation outlining how the town came to the financial conclusions it did, to no avail.

"While the CBMI was consulted regularly by the town when (officials were) lobbying for the project, we were not even given the respect of a phone call when the bylaw to allocate costs was discussed," they said in a letter to Northern Ontario Business dated Dec. 9 2005. "The town ... has used the Privacy Act to their advantage to withhold vital information used in the decision process."

They say it isn't fair that privately owned commercial properties were assessed at triple the residential rate (each property was assessed a flat rate of $4,500 plus about $14,250 per hectare), while the 100-plus lot Lakeside trailer park was charged the residential rate. They also say the Thessalon Hospital and Algoma Manor residence should have been assessed some charge through the town, since those institutions have benefited from the extension.

Latulippe and council have told the Weigels businesses have the ability to recover the charge via revenues.

The only legal course the Weigels really have via the Municipal Act (they can't appeal to the Ontario Municipal Board) is to prove that the bylaw establishing the charges was passed with improper motives, the intent to defraud or oppress.

They would have to quash the bylaw, possibly arguing the case in front of the Ontario Superior Court.

That is simply not possible in any practical sense, Andrew Weigel told Northern Ontario Business after a meeting of the Taxpayers Association at the town's community hall Dec. 7.

Earlier, North had given a long and sometimes technical verbal presentation on the project and the legalities attached to it for about 35 residents, including the mayor and some members of council.

He suggested that the project be paid for through town reserves and a debenture if necessary.

After his talk and a coffee break, Mayor Latulippe and the councillors faced several complaints and questions related to the way in which they do business.

"Before you were elected, you sounded just like us, Donna," said Susan Weigel, alluding to the last election campaign, which centred around a lack of transparency with the former council. "Now you've changed."

Several similar complaints emerged from the crowd over the course of a few minutes.

Latulippe eventually rose, thanked North for the material he provided, and said that the silent majority of Thessalon residents not attending the meeting should be taken into consideration.

The "secrecy" of council as it pertained to the Dawson St. project concerns mainly what the Weigels describe as a lack of notice.

Ratepayers received less than a week's notice of the charges being discussed at the next regular town meeting, according to North. The Weigels say that is contrary to the Municipal Act, which requires a separate public information meeting about any bylaw imposing a fee or levy. Notice of the meeting, including an estimate of the project's cost, the amount of the fees to be imposed and the rationale for imposing them, must be given at least 21 days' notice.

In a phone interview with Northern Ontario Business Dec. 22, Latulippe confirmed she and council had reviewed the materials North provided her with, and that the position of the town will remain unchanged.

"I am confident what we did as a council was all we could do," she said. "The original system was put in during the '70s, and we all paid handsomely for it then. This was a total add-on (where there was no service before), so they are expected to pay as well."

Contrary to North's proposition, Latulippe maintains that the province dictates that water and sewer projects are to be paid for in part by those residents who benefit from the new service.

"We're doing what we're legally bound to do. We never intended to hurt anyone. I don't like it when people get personal ... but the bottom line is the bill has to get paid."

For the Weigels, that means paying in the region of $9,000 per year for the next decade to settle the bill, plus the new monthly $1,150 flat-rate water bill they have been receiving since being put on the municipal system.

The only other motel in town closed over a year ago. They hope to avoid that fate.

www.townthessalon.ca

By CRAIG GILBERT

Northern Ontario Business