TCL spokesperson Neal Alderson tells me this reflects a "one-time grant" of $4.8 million to address collective TCL operating deficits dating back to the 2004/05 fiscal year. "It was in our business plan," he says, seemingly suggesting that I should've known about this, and it's not a big deal. Well, sorry; although it seems like it sometimes, I don't pour through every TCL document, and the deficit reduction has never been reported, so far as I can tell.
But since we're on the subject, here's how the deficit reduction is explained in the business plan (page 286):
Forecasted financial results for the current fiscal year (2010–2011) are an operating profit before depreciation of $4 .45 million for TCL and a profit after depreciation of $2 .9 million . TCL’s forecasted 2010–2011 financial results reflect a one-time grant from Economic and Rural Development and Tourism to TCL to address accumulated operating losses dating to fiscal 2004–2005 . Forecasted financial results for the current fiscal year (2010–2011) for Halifax Metro Centre are an operating income before capital expenditures of $276,500 . In 2011–2012, TCL expects to generate revenues of approximately $13 million . In 2011–2012, Halifax Metro Centre expects to generate revenues of approximately $7 million, resulting in operating income before capital improvements of $610,000.That's a hell of a convoluted way to say they're $5 million in the hole. Note that the dollar amount of that one-time grant is never mentioned in the business plan.
So, yea, the $5 million hit to taxpayers is news.
