THUNDER BAY – Loans provided by the city to RegenMed more than six years ago won't start to be paid back until 2021.
Thunder Bay city council on Monday night approved the two-year extension for the Lake Superior Centre for Regenerative Medicine, which had requested pushing back the repayment schedule that was supposed to start on April 1.
The city had approved a series of three interest-free loans totalling $550,000 in 2012 and 2013 local biomedical facility. A 10-year repayment plan with monthly installments of nearly $5,000 was supposed to start at the beginning of the month. With the extension, the city is scheduled to receive the final payment in 2031.
Coun. Brian McKinnon, the chair of the city's intergovernmental affairs committee, last week brought forward the request on behalf of RegenMed to delay the repayment schedule, saying the organization couldn't meet the deadline.
RegenMed executive David Stezenko, responding to a question about whether the organization could leave the city, made it clear there is a commitment to Thunder Bay.
"There's a very steady mandate from the board of directors that pushing the economic development of the biomedical cluster in Thunder Bay is absolutely part of the mission and the vision of this company," Stezenko said.
Stezenko said RegenMed currently employs 15 people, though three significant projects currently underway could dramatically increase their workforce. An announcement made by the previous Liberal provincial government, which has been since put under review by the new Progressive Conservative government, making the centre Ontario's designated tissue processing centre would result in 30 new full-time equivalent positions within the first four years.
The centre also earlier this year announced that federal funding would allow it to launch the country's first cortical bone powder program. RegenMed is also pursuing becoming Canada's first manufacturer and distributor of acellular dermal matrix, which Stezenko said would result in dozens of new jobs in the first four or five years with the potential for it to become "many dozens" in following years.
Coun. Rebecca Johnson suggested that RegenMed officials report back to council on a regular, eight to 12-month basis.
"We're now saying to the community that we're letting your organization not pay for another two years," Johnson said. "Maybe you need to come and tell us and the community on occasion what you're doing so that we know that we're eventually going to get this money back."
The city had also provided RegenMed with a non-repayable grant of $500,000 in 2011.
