Update: New Tec nixes Flato $1 million offer for naming of arena

Council rejects deal to sell developer NTRC naming rights, but it’s still for sale

New Tecumseth Free Press January 10 2017

Councillors last night turned down an offer of $1 million over 10 years from the FLATO development group for naming rights of the New Tecumseth Recreation Centre (NTRC).

FLATO, a Markham based residential developer currently in the process of closing land purchases totalling 426 acres in Beeton for the purpose of building subdivisions, negotiated the deal with mayor Rick Milne and Director of Parks, Recreation and Culture Patrick D’Almada. Its terms were made public with last night’s committee of council agenda.

It called for 10 equal instalments of $100,000 in exchange for naming the facility FLATO New Tecumseth Recreation Centre or FLATO NTRC.

Councillors did not oppose the idea of selling the naming rights, but there was outward concern about how it came about.

“We certainly could utilize the million dollars to help operate our facility,” said Ward 3 councillor Paul Whiteside. “My personal opinion on this, an open and transparent process has not taken place at this time. I think everyone should have an equal opportunity, and until such time as an open process takes place, with the committee in place, I cannot support it.”

Councillor Richard Norcross, whose Ward 6 Beeton ground zero for FLATO proposals, added before seconding Mr. Whiteside’s motion, “I also have further concerns as there’s at least one, maybe two possible open applications before the Town that have to be taken into consideration too and transparency and openness is paramount at this point.”

Ward 8 councillor Chris Ross added, “I’d like to see it go to open tender.”

Ward 4 councillor Fran Sainsbury said when the committee is formed one of its first goals should be to “sit and put something together for council to decide how we’re going to proceed. Are we going to send out letters, have a public meeting? I understand these people (FLATO) are a good company, and (FLATO president Shakir Rehmatullah who was in attendance but did not speak) is a fine gentleman. So they can apply. But also we have had development going on for a long time, people have had the same opportunity to make that proposal to us, and nothing has come of that.”

The report to council notes that “The Mayor has reviewed the proposal with Council’s Revenue Generation Task Force, and there was general support for the proposal, and recommended that this proposal be brought forward for Council’s consideration.” But the committee has not been established, and it wasn’t made clear at this post what that entailed.

But councillors did direct the Clerk to come back with a proposed committee structure.

Ward 1 councillor Marc Biss, whose recommendation it was in November 2015 to strike such a committee, suggested even though it hasn’t been established, has “obviously worked.”

“We have an industry leader who has come to our community and has indicated to us he’s willing to invest in our community,” said councillor Biss. “Certainly before this even came up, there was no one outside our community who was willing to invest. And I thank the FLATO Group and I thank everyone who is looking toward our community as a leader and is world class. I know there are some people in the audience who don’t think this is a world class place to live, but I certainly do. And I believe that FLATO and others, if they wish to come here, and they wish to invest in our community, if they wish to invest and make our community stronger, and help offset the cost of public infrastructure and things that we do here, I think that should be commended and I will support the transparent process so we can strike the revenue generation task force and then cover all the different ways we can generate incremental revenue on everything we do so that the taxpayer doesn’t have to pay for the cost everytime.”

New player on local development front wants name on NTRC, is buying 426 acres

New Tecumseth Free Press January 9 2017

Council will be presented with a draft agreement tonight that would pay the municipality $1 million in equal instalments over 10 years to rename the NTRC: FLATO New Tecumseth Recreation Centre.
FLATO Development, whose president Shakir Rehmatullah, is a Markham based builder has entered the local residential development picture under the name Beeton Meadows – a party in the Sorbara Group’s Valleyview subdivision in Beeton.

The naming rights agreement comes in the midst of FLATO’s plans to build new subdivisions on two separate parcels in Beeton, both of which require official plan and zoning bylaw amendments.

In February 2016, FLATO, as Fletcher Meadows, agreed to purchase 200 acres of what was the Mason family farm, from the Walton Group. The cost is $16.4 million, and Walton will take back a mortgage of $13.1 million. The closing date is May 26, 2017. FLATO would be required to pay the outstanding principle and unpaid interest either on the 7th anniversary of the closing date, or 180 days following the date which the remainder of the land is included in the settlement area of the Official Plan – which ever comes first.

FLATO is in the process of applying to the Town for a draft plan of subdivision, and a rezoning application on the subject site legally described as Part of Lots 11 and 12 Conc. 8, from Agriculture to an Urban Residential-Exception Zone. The proposal includes 111 single detached 12.2 m lots, and 46 single detached 10.7 m lots. The application has yet to reach council.

Concurrently, FLATO, under the name Beeton Meadows, is in the process of closing the deal on 226 acres – adjacent to Valleyview development – also from the Walton Group.

The deal was executed February 4, 2016, and FLATO agreed to pay $13.9 million for the site which is identified as having a net developable area of 139 acres. The closing date is May 16, 2017. Walton will take back an $11.1 million mortgage with similar terms to Fletcher Meadows.

The report to council on tonight’s agenda regarding the naming rights to the NTRC, FLATO would have an option to renew for two additional five years, under the same terms and conditions. FLATO has been a sponsor of the Mayor’s Rodeo over the past two years, as well, has contributed to the Beeton FAB group’s recreational centre fundraisers. FLATO paid the Town of Markham $1 million to rename its theatre.

The report to council notes that Mr. Rehmatullah met with mayor Rick Milne and Parks and Recreation Director Patrick D’Almada on March 22 and May 5, 2016 to discuss the terms of the agreement. The draft was drawn up Dec. 14th, two days after council’s final meeting of 2016. The agreement’s effective date is noted as January 1, 2017.

The report to council notes that “The Mayor has reviewed the proposal with Council’s Revenue Generation Task Force, and there was general support for the proposal, and recommended that this proposal be brought forward for Council’s consideration.”

But Ward 1 councillor Marc Biss, who in November 2015, put forward the suggestion that such a task force be established, told Free Press Online this morning via email that “The Revenue Generation Task Force has not been created.”

“I believe that the Municipal Property Naming Committee (as outlined in Resolution 2011-300) was involved after Mr. Rehmatullah approached the Mayor with his $1M offer (with options that could make this a $2M offer).”

FLATO’s conditions also include a full page colour advertisement on the inside back cover of the Town’s parks and recreation guides, one arena board advertisement in Pad 1, and that FLATO be invited to “significant events” hosted by the Town at the NTRC. Those costs would come out of the annual $100k payment. FLATO would pay for the the costs to design, fabricate and install the new signage.

Mr. Rehmatullah is scheduled to be at tonight’s council meeting to speak to the matter.