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Lacombe city council rejects spending $90,000 on business recovery initiative

Council supports spirit of business effort but says using tax dollars inappropriate
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File photo by BLACK PRESS news services Lacombe city council has voted unanimously not to provide funding to an effort aimed at ensuring the community’s businesses can resume operating after the COVID-19 pandemic has passed.

Lacombe city council has balked at using tax dollars to back an initiative aimed at helping businesses get back on their feet after the pandemic.

The newly formed Lacombe Economic Action Partnership wants to bring businesses, government and social agencies together to develop initiatives for what is expected to be a uniquely challenging economic recovery.

The group requested $90,000 in funding from the city.

“Standard economic development activities are unlikely to be effective, given the the magnitude and unique impacts of the pandemic, which have already caused one of the highest magnitude economic downturns ever experienced by the Lacombe business community,” says a report to council from city community economic development manager Guy Lapointe.

Mayor Grant Creasey says while he supports the business community, and praises the partnership’s work, he could not endorse the use of tax dollars for the initiative.

“If we had some indication that this was somehow going to (mend) all of the ills of this economic disaster we seem to be facing because of COVID-19, I would be fully behind it,” said Creasey.

“But this $90,000 is going to do precious little to address that, I’m afraid.

“I fully expect businesses will work collaboratively together and do what’s in their best interest and what’s in the best interest of the community.

“But to expect the taxpayer to spend additional dollars to make this happen is, I guess, irresponsible, as far as I’m concerned.”

Other councillors were also reluctant to commit tax dollars in a year when the city budget is expected to take a beating.

“I commend the thinking behind this, but I’m really nervous about what our 2020 budget is going to look like in four or five months,” said Coun. Reuben Konnik.

“I would sooner just bank this money and see where we are in six months, because I suspect we’re going to need this ($90,000) just to make up the shortages in our current budget.”

Konnik was also concerned the initiative would not give businesses the help they need now, such as paying rent and utilities.

Lapointe said Lacombe has many innovators, but they often work alone.

“I think this is an opportunity in a lot of ways to get everybody on the same track and to move in the same direction.

“I think the whole point is for us to work with the business community and for them to generate ideas that are going to benefit them.”

Lapointe said the group will continue to look at ways to work together, even without the funding.

“I don’t think this is going to deter the group.”

Council voted unanimously against providing the funding, but it did vote in favour of providing $20,000 worth of free meeting space for the partnership.

Meanwhile, council took steps to prepare for a post-pandemic world by directing administration to draw up terms of reference for a social resiliency task force.

Similar task forces have been undertaken by Stony Plain and Calgary.

“These inter-agency task forces are structured around the goal of a community experiencing less social harm during the pandemic and developing programs that are specially targeted to social recovery after the pandemic event,” says a report to council.

“Lacombians could be at risk of economic collapse through job or business loss and may also experience food and shelter insecurity, physical and social isolation, fear, family disconnection, grief and depression,” says the report.

That could lead to problems such as addiction, domestic violence and suicide, and cause development delays in children.



pcowley@reddeeradvocate.com

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