Federal funding in limbo

Duane Hicks

With the federal election campaign officially underway, Mayor Roy Avis is wondering how that is going to affect the anticipated federal funding component for the demolition and redevelopment of the old Rainy Lake Hotel here.
Last August, the town received $1 million from the Northern Ontario Heritage Fund Corp. to level the old hotel and redevelop the site into a market square.
But the Rainy River Future Development Corp. still is awaiting approval from FedNor for the $655,000 requested to make the project a reality.
Now, with the election having been formally called for Oct. 19, federal funding announcements are frozen.
How this will affect the former hotel’s demolition and eventual redevelopment into a market square remains to be seen, Mayor Avis said yesterday.
“I don’t know,” he admitted. “I was hoping that [the funding] would be announced prior to the election.
“We were led to believe it would be but we haven’t heard officially.
“Where we stand with that as you ask me this morning [Tuesday], I couldn’t answer you,” Mayor Avis added.
The mayor said council will discuss the matter at its next regular meeting this Monday (Aug. 10).
The town has put out a call for tender for the demolition of the old hotel, with bids due by Sept. 1.
Mayor Avis said the tender process still will go ahead as it will allow the town to find out more details, such as exactly how much it will cost to take the building down.