Demand an Audit of the Ramada Purchase

Introduction: Taxpayers Deserve Answers

The Cochrane District Social Services Board (CDSB) spent $11 million in taxpayer dollars to purchase the Ramada Inn—a property last assessed at just $2.97 million. Despite knowing that provincial HART Hub funding was not guaranteed, the CDSB moved forward with this high-risk, high-cost decision.

The Problem

• Lack of Transparency: The CDSB refused to release their HART Hub proposal until after their funding application failed. This document reveals significant additional costs and major financial risks.
• Overpayment for a Deteriorating Asset: The last known MPAC assessment (2016) valued the Ramada at $2.97 million. The CDSB paid $11 million, a nearly 270% markup, despite the building needing at least $3.3 million in renovations just to be functional.
• No Funding, No Plan: With no secured provincial funding, where is the money coming from? Taxpayers are now on the hook for the mortgage, maintenance, taxes, and renovations with no clear plan to offset costs.

Ongoing Monthly Costs

Even with no long-term funding, the costs of the Ramada continue to add up. The estimated monthly carrying costs include:

• Mortgage Payment: The CDSB took on an interest-only mortgage with 0% down at a 6% annual interest rate. The monthly mortgage interest payment is approximately $55,000.
• Property Taxes: Based on the last MPAC assessment, estimated at $11,198 per month.
• Utilities (Heat & Hydro): For a mostly empty hotel, estimated at $7,000 per month.
• Maintenance & Repairs: Even with minimal occupancy, expected to cost at least $5,000 per month.

Total Estimated Monthly Cost: $78,198 - and that's a conservative estimate!

Over a year, that’s an additional $938,376 in taxpayer money just to maintain an underutilized, deteriorating asset.

The Call to Action

Timmins City Council has a responsibility to demand accountability. The CDSB’s financial decisions must be investigated through an independent forensic audit by the Ontario Auditor General. Here’s what you can do:

• Email City Council & Mayor Boileau: Demand that they formally request the Ontario Auditor General to audit the Ramada purchase.
• Engage Your Community: Encourage others to demand transparency and financial accountability.