Further Costs of the Newmarket Soccer Club Revealed

A very revealing blog posting by Councillor Di Muccio today sheds more detail on the Newmarket Soccer Club bailout fiasco. 

According to Councillor Di Muccio, the Newmarket Soccer Club is paying "interest only" on the $2.8 million mortgage until the club sells a parcel of land located in Whitchurch Stouffville. 

According to an online mortgage rate calculator, a 3yr mortgage term at 5% interest over a 25 year amortization period would pay approximately $137,256 in interest annually or a savings of approximately $45,000 less than if paying principal plus interest. 

The land in WS has been for sale since September and there have been no bids.  The question that Newmarket taxpayers need to be asking is, What motivation does the Newmarket Soccer Club have to sell this land? 

An experienced private lender would have included in the negotiated deal a time limit if it wanted to include a period of time for interest only payments.  That limit would have been short -- three to six months.

The reason that governments should not be in the mortgage business is because they don't anticipate contingencies.  In this case, the Town of Newmarket just assumed that the Newmarket Soccer Club would sell. 

Mark my words, this Whitchurch Stouffville property won't sell any time soon.  To sell a piece of land, you need a motivated buyer and a motivated seller.  The Newmarket Soccer Club has no reason to be in a hurry to sell. 

The bottom line is that Newmarket taxpayers are being shortchanged $45,000 annually while this property in Whitchurch Stouffville remains in the soccer club hands.  That sum of money that could have been put to better use supporting new programs for youth or seniors, or purchasing new recreation equipment or books in the library. 

I have heard some members of Council justify the "closed door" secrecy of this deal as necessary because any smidgen of detail could benefit a potential bidder.  What I say to the Council is, "I don't care, and neither should you."

Here is why I don't care about the selling price.  The Town of Newmarket is owed $2.8 million and not a red cent has been paid nor will it be paid until the WS land is sold.  If the soccer club sells this property for $5 million, $500,000 or $50, the amount borrowed from the Town of Newmarket is $2.8 million.  The Town doesn't get more of a financial benefit if the WS land sells for a profit nor are we harmed if the property is sold at a loss.  Therefore, thee only thing that Council should be concerned with is that the WS land sells so that the $2.8 million principal will commence to be paid back.

Watching this Council over a number of years, I have seen too many instances where the Mayor and his allies forget that they are supposed to be working for us, the general public, and not some special interest group/ developer/ or others.  These Council members have a responsibility to make sure this money gets paid back and their closed door secrecy is only impeding the repayment. 

My advice - STOP the secrecy & START being firm with the Newmarket Soccer Club.  Mayor Van Bynen and his allies - Regional Councillor Taylor, Councillors Twinney, Hempen, and Emanuel, need to do the job that voters hired them for.  If they are too timid to get tough, then now is the time to step aside and let others take charge.

(You can read Councillor Di Muccio's blog via this link:  http://maddiedimuccio.webs.com/apps/blog/show/42182574-how-council-can-help-the-newmarket-soccer-club )