A local medical firm has again asked city council for help in order to expand its operations.
RegenMed, the only non-profit bone and tissue bank in Canada, requested the city donate $500,000 to help the organization expand. The business received the same amount in July last year after it was unable to meet the desired amount of donations needed to break even.
The additional funding would go toward a possible two-stage expansion to ensure the growth of the organization.
RegenMed CEO and President Bob Thayer said the business was at a crossroads and that they needed to expand if they are going to be sustainable in the long term.
In July 2011 there was a great risk that the company could go under, but since then RegenMed has taken a lot of steps in becoming sustainable.
With the city’s help, Thayer said they could be held sustaining by 2013.
“We have accomplished 80 per cent of our game plan,” Thayer told council.
“I think we’re mostly there. We’re not all the way there but we’re mostly there. I think there’s a significant need. I am very biased but this is something very important for the province not just for Thunder Bay.”
More than half of the amount requested would go toward expanding the distribution team from eight to 40, acquiring equipment, creating a marketing campaign and attending trade shows. The remainder of the funding would be used if the business needed to expand more.
He said most of the distribution team is in the Greater Toronto Area, so having more on the team would allow RegenMed to spread across Canada.
The province has already provided $500,000 in funding for RegenMed. Thayer said he has been in talks with MPP Bill Mauro (Lib., Thunder Bay – Atikokan) and the Ministry of Health in order to secure operational funds.
He said they have a sound case to have the province provide that funding.
“They haven’t turned us down we just haven’t asked,” he said.
He said he would be fine to take it as a loan but he would have to talk about it with the company’s board members.
Thunder Bay Mayor Keith Hobbs pointed out that if they went ahead with this request then the city would be providing double the amount given by the province.
At-Large Coun. Ken Boshcoff said he needed some reassurance from the company in order to justify the amount being given.
“I’ve believed since day one that (RegenMed) should be able to make money,” Boshcoff said. “The citizens are counting on us to make a good decision here. I’m really kind of hoping you can toss us something to let the citizens know that, yes, this isn’t just going to be around until the money runs out.”
At-Large Coun. Rebecca Johnson said if the city is going to give the company that amount, then she wanted to see how they are going to become self-sustainable in 2013.
Meanwhile, Westfort Coun. Joe Virdiramo said it seems they are in a bit of a Catch 22 in that the province believes RegenMed is important, yet it isn’t willing to fund the company. That puts the responsibility on the municipality’s shoulders.
“If we don’t do it and RegenMed goes under then somebody else in the province will probably create one that’s for profit,” Virdiramo said.
Neebing Coun. Linda Rydholm requested a report in order to move forward with a decision.
The report isn’t expected to come before council for another three weeks.
