Town denies Morskate’s request for deal extension

Town council has denied a request from Morskate Manufacturing to extend a first right of refusal on 3600 Highway 2A.

Town council has denied a request from Morskate Manufacturing to extend a first right of refusal on 3600 Highway 2A.

The company has an arrangement with the Town of Ponoka for first right of refusal on two acres of land in the Southwest Industrial Park on 39 Avenue and 67 Street adjacent to their property. However the contract expires Dec. 31.

This two acres is part of the 13.3 acres Coun. Rick Bonnett successfully argued should be reduced to $180,000 to speed up its sale. He suggested the town should work with Morskate on this request.

“I understand what the contract said but at the same time we don’t have a sale,” said Bonnett. “We don’t have a pending offer on that land right now.”

He suggested council extend the first right of refusal for six months to a year. Coun. Loanna Gulka asked of council needed to make a decision right away.

There are other companies that have expressed an interest in the 13.3 acres but no formal offer has been made, explained CAO Brad Watson. The advertised property includes the two acres Morskate is interested in and a decision is important for potential buyers. “What we can do as a courtesy, if someone is coming, to make them (Morskate) aware there is a party looking and discussing this property.”

Coun. Doug Gill believes if Morskate is unsure about the two acres council should deny the request as there might be other companies who would buy it. “He has till Dec. 31 so it’s not an immediate press right now.”

Bonnett suggested council wait until a few weeks prior to the expiry date before making a decision but Coun. John Jacobs did not agree. He would rather keep it on the books for review later. “They’re asking us a question. Are you suggesting we don’t answer his question for six months?”

He feels the best option for council is to deny the request, which would give Morskate some time to plan for the future.

“That doesn’t prevent him from asking again,” Jacobs added.

Drawing up contracts such as this and then allowing companies to extend them is not something Gill would advise. “We have to be real careful.”

He feels council should stick with the contract that was signed and after it expires revisit other options. The contract states the agreement may not be extended past Dec. 31.

“Legally you cannot extend this first right of refusal,” said Watson.

Gulka and Bonnett opposed the motion to deny the request.

Just Posted

Rabbits saved from barn fire in Ponoka County

The Ponoka County East District Fire Department was called to a barn fire

Bashaw peewee club’s season comes to an abrupt end

Players decide not to go into playoffs without one of their teammates

Ponoka man attacked by dogs issues plea to town council

Troubles with bylaw and handling of court case prompts presentation to council

Concerns over town expressed to Ponoka County council

Resident warns county council in collaboration discussions with Town of Ponoka, council notes its own concerns

Ponoka County resident wants $62,000 in lease revenue

County approves revenue to landowner going forward, legal review to look at retroactive funds

Sylvan Lake’s Megan Cressey misses Freestyle Skiing Big Air podium

Alberta’s Jake Sandstorm captured silver in the men Freestyle Skiing Big Air contest

Why do zebras have stripes? Perhaps to dazzle away flies

Researchers from University of Bristol look into why zebras have stripes

Poll: More voters believe Canada doing worse under Trudeau government

22 per cent believed the country is doing better and 27 per cent said things are the same

Ponoka host to Bayer Crop Science seed innovations trade show

The company held a trade show with seed crop science industry partners at the ag event centre

Peter Tork, Monkees’ lovable bass-guitar player, dies at 77

Tork, Micky Dolenz, David Jones and Michael Nesmith formed the made-for-television rock band

Lacombe welcomes ‘Napalm Girl’ to discuss journey from hatred to forgiveness

Latest Herr Lecture to feature Kim Phuc Phan Thi at LMC

Millennial men least likely to have a family doctor: Statistics Canada

Report found more women have primary care physicians, compared with men

Alberta to play for gold in wheelchair basketball

Action-packed first week of Canada Winter Games nearly a wrap

Most Read