Mill River deal a head scratcher, say Tories

P.E.I.'s Opposition Progressive Conservatives are pleased to see the private sector taking the lead on a redeveloped tourism attraction in West Prince, but are questioning the cost.

Last week the province announced the Mill River Resort, golf course, fun park and campground were being purchased by Blue Jays founder Don McDougall.

• Mill River resort, attractions, sold to Blue Jays founder

"It's good to see the private sector taking the lead on jobs and growth in West Prince," said economic development and tourism critic Matthew MacKay in a news release.

"But the terms of the deal have many Islanders scratching their heads. Government should get out of the golf business but it shouldn't cost Island taxpayers more than $9 million to get rid of a single golf course."

In order to deliver the resort and surrounding attractions as a package, the province purchased the resort from Rodd Hotels for $1.8 million, and delivered all four properties to McDougall for $500,000. The province also committed to spending $7.6 million over the next 12 years to cover operating losses and help with capital improvements.

That's a net cost of $8.9 million. McDougall committed to spend at least $1 million on capital improvements.

Priorities questioned

PC MLA Darlene Compton pointed out in a Facebook post that the $7.6 million the province promised over the next 12 years is more than the cost of operating five schools that the Public Schools Branch has recommended be closed.

She calculated the cost to be $548,727 a year for the schools. The resort and attractions payments would come to more than $630,000 a year.

The province said it anticipated operating losses of $550,000 a year if it continued to operate the properties.

MacKay said the deal shows the misplaced priorities of Premier Wade MacLauchlan's government.

• MORE P.E.I. NEWS | Accessible cottage added as demand increases
• MORE P.E.I. NEWS | A salty solution: P.E.I. pilot project could lead to safer roads