Blind River taxpayers chew out council about $50M green energy loan

Some harshwords were exchanged Thursday night at a public meeting in a small northern Ontario town that's taken on a big debt.

Blind River borrowed nearly $50 million from the Canada Mortgage and Housing Corporationto start a green energy company, but now might lose half of it after investing in a project that went bust.

More than 300 people in a town of 3,500jammed into the arena hallto talk about something people here have been talking about for months.

"Whatever you've done, you've certainly brought the community together," Doug Haggard said to the standing room only audience.

But Mayor Sue Jensen said the opposite is true, with rumours and "drama" dividing the town in the weeks since the news about North Shore Power Group hit the news.

The town-owned company invested $25 million, half of its loan, in an Ottawa power outfit calledPlasco, which hasrecently shut down.

It's now unclear whether or not Blind River will be able to recover its money, with a lot depending on whether or not new owners step forward forPlasco.

Most people speaking at the public meeting were upset that Blind River town council didn't involve them in these decisions.

"I was forced into being a shareholder in the North Shore Power Group," said Mike Dupuis.
"You were a bunch of cowboys with my money. I don't appreciate it."

Andre Berthelot, who ran for mayor of Blind River in the fall, has been the main critic of the town's green energy scheme.

He has apologized for some of the personal remarks he made about staff at the power group, but was also credited at the public meeting for putting the issue in the public light and forcing officials to share details openly.

"Effectively, our grandchildren have been hog-tied to a debt that council incurred to invest in a speculative business venture," said Berthelot.

North Shore Power Group CEO Graeme Lowryspoke for over an hour, going into fine detail about the electricity business and the technical side of power generation, as if he was addressing shareholders.

While he admitted the company had made "missteps" and that the plans were "audacious",he said there was no point apologizing and dwelling on the past, arguing that if you don't have a little bit of failure, you're probably not trying hard enough.

"Does that mean we shouldn't have tried? Does that mean small northern towns should never try to accomplish anything?" asked Lowry.

Blind River towncouncillor Ken Kennedy predicted that in the years ahead these concerns will be forgotten, when North Shore power is filling the town's bank accounts and improving life in a place with little other economic development.

"We took a chance, there's a little hiccup right now. Give us some time, we're going to work it out," said Kennedy.

"Have some faith in your mayor and council."

Right now, the town is waiting to find out what happens withPlascoand how much of its investment will be recovered. Mayor Jensen said if it doesn't go well,Blind River may look at restructuring its $50 million loan or look at cuts to the $8 million municipal budget.

So far, the profits from the solar farms in Blind River are covering the $1.15M annual loan payment and the power group is hopeful with more projects expected to come online this year.