Simcoe County continues to pour money into the fiscally and physically unsound Matthew Cooperative in Collingwood – without even owning it.
And that has some county councillors wondering whether the county should buy the complex, fix it up and run it properly. Simcoe County took over running social services, including housing, in the late 1990s; part of that role is to ensure cooperative boards operate properly and use provincial and county grants according to provincial guidelines.
The co-operative is now in court-appointed receivership. Last year, the court-appointed receiver turned to the county for help with an array of capital issues – from roofs and eavestroughs, to hot-water tanks to brick work and internal upgrades in various units.
“We’ve already spent close to $1 million and the bleeding continues. What is its current value and what is the mortgage? Is there an opportunity (to buy it)?” asked Bradford West Gwillimbury Deputy Mayor Dennis Roughley.
“We continue to pay and forgive. When do we say enough is enough? Let’s take it on and do it as it should be done.”
Since the co-op went into receivership last year, the county has been pouring in money – including cash for roof repairs and unit upgrades, as well as receiverships fees and legal fees.
“There’s a $1.9-million life raft and it keeps coming back in dibs and drabs. Whether it was because Matthew was built by the lowest bidder, that’s the price you pay. We should be doing whatever it takes to get this fixed once and for all, and stop the bleeding,” said Wasaga Beach Deputy Mayor David Foster. “I’m tired of seeing it here.”
The issue could come up again at county council Aug. 28; the court-appointed receiver has made a business case that noted 12 units require “rehabilitation” and at least two more are on the horizon.
As well, there are four hot water tanks that must be replaced immediately.
“Some projects like the Matthew Cooperative came download with very inadequate capital resources,” said social services general manager Terry Talon.
