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ome of the confusion over a complex deal to ftnance the jewel of Waterloo's park sys- tem, the $56.7-million RIM, was dispelled at Monday night's coun- cil meeting, with present council- lors and the mayor assured of the legality of the deal. Questions were raised last week about the ethics of the deal struck between the City of Waterloo and MFP Financial Services of Mississauga to rsnance the park over a 30-year term. Of particular interest was the 4.73-per-cent interest rate that the company was able to give to the city, which is more than two per cent less than the prime lending rate. This has allowed the city to build a bigger project than 0rlg1' nally envisioned, giving park plan- ners the ability to add four-ice pads ook ‘ mElBltMBMr 'o-shim-sei. mugs: u m mum-Hm “de RIM Park financing deal legally sound, council told looking For a Howl ttjiiigiiiiii FACTORY SHOWROOM V . . . _ ' 1'1' 21 Allen St. w. 535-1000 " Mun _Wed ws, Thors & Frl 06.52“ [04 BY Boa VRMNAC Chron tcle Staff U _.,] r a, I-.t,c.1,'tf,,ii':,'i?i,,',:,:t viable-.2- (111211-17? f--éahqetat-ston, (littiiaa, Fine Home Furnis . iil (1mm in Uptown Waterloo ,llrGh'Cii? i if "We're more than just tables and chairs!" to the construction. as well as a gymnasium and a field house. The company then is able to seek tax deductions afforded to municipal projects by the federal and provincial governments to make up for the difference in the lending rate. It's a deal that will save the city millions over the life of the agreement, but might run afoul of federal and provincial tax watch- While the ethics ofthe deal were debated by Mayor Lynne Woolstencroft last week, council received assurances of the legality of the deal from both staffand out- side auditors. MFP has been able to offer such a low rate because of a complex leasing arrangement that saw the city lease the park to the Mississauga company, which in turn leased it back to the city. And former councillor Mike Connolly returned to the chamber . Livmgmom Suites . Bedroom Suites . Kitchen & Dining Sets _ . ' '1 mm“ WEE Fuiitrtifr"e"iit'iiti V Thrs' Kit?h% C " .. Counter Stools . Home Accents PAGE 3 "As a previous member of the council that made the deal, I feel we did a very good deal for the citi- zens of Waterloo, as time will sure- ly tell," he said. Coun. Dave Roeder also voiced his concern that council was giving the impression that the fmancial arrangement was built on shaky ground. to blast council over the current public confusion created over the deal. The outspoken former head of the city's fmance committee said the ethics of the deal were never a concern, just the legality of using certain tax loopholes. "One of the main questions was, 'Was it legal to foster such a deal,'" said Connolly. "The answer was yes" And Connolly, a former mem- ber of a local tax watch group, stands by the deal struck by the previous council. "I feel confident and I feel safe "Everybody understood ' . It and there were no questions raised. That's t my question now -_-- why all of a sudden all e the questions?" about everything that's happened." said Roeder after the meeting. "We've discussed this issue over a number of months and in in-cam, era meetings. _ - Dave Roeder City of Waterloo councillor "Everybody understood it and there were no questions raised. That's my question now -- why all of a sudden all the questions?" Reader. the head of council's recreation committee, said the RIM Park project is on time and on budget, Woolstencrofl, who said she "FrsFrtrr"tgtttatw Silk-38' I Uni MGIMISW _ (“Mill-mam looking For a New had questions about the deal, got reassurances about the legality of the financial agreement from two outside chartered accountants whom she personally knows. She was told the question of the ethics of the deal have to be settled by the federal government and MFP Financial Services. 'Tve been told that the question for us shouldn't be whether it's moral," said Woolstencroft. "it's whether it's legal. "The moraf question belongs to MFP an_d the federal government." Woolstencroft said she was caught up in the complexity of the ethical question surrounding the deal - of shifting the tax burden to another level of taxpayers -- and had to think out her position. But there was min a concern that the city would be stuck with additional liabilities should some It“ In] Continued on page 5