Once again, Thunder Bay city council has decided to help Regenerative Medicine.
The majority of council voted in favour of giving ReGenMed, the only non-profit bone and tissue bank in Canada, an interest free loan not exceeding $250,000 at Monday night’s meeting. The business originally asked for a loan of $500,000 last month with a plan to use $275,000 of that money for a new national sales strategy and have the rest available if necessary.
The city already provided financial help to keep the business from going under last year.
The loan will be advanced in monthly installments of $50,000 and ReGenMed must give a monthly report on its finances as well as bring back strategies to reduce costs. Council also requested the business work with the Ministry of Health and the local MPPs to secure provincial funding.
City Manager Tim Commisso said giving ReGenMed the loan not only supported a local business but also ensure the business employs local people.
But he did admit there’s risks in continuing to support the bone and tissue bank.
“This organization should be full self-sustaining on the basis of its sales,” Commisso said. “It has needed help to get there but it is a locally grown organization that quite frankly is working in an environment where it is absolutely unique where it’s working with the Trillium Gift of Life Network to really fill a huge need in the province.”
Commisso said the company’s operations have moved in positive ways but the challenge is having hospitals and dentists purchase their products. He said if the sales don’t go up then administration wouldn’t be recommending any more support.
He said the Gift of Life Network isn’t a funding organization and asking for help from the province is a challenge.
He added there could be $250,000 a year in funding for the company but they will have to look into it within the next couple of months.
Thunder Bay Mayor Keith Hobbs said council shouldn’t be putting a price on people’s lives.
“I received a letter from Trillium Gift of Life today and I understand that ReGenMed has been successful in building its tissue inventory,” Hobbs said. “Business now faces the challenge of developing its sales.”
McIntyre ward Coun. Trevor Giertuga voted against the recommendation because he said he didn’t want the company continually come back to council with more funding requests. He pointed out the company has received about $1.1 million from taxpayers, which included a $500,000 donation from the city.
He said the province needed to step up and provide ReGenMed some support.
“I’m just concerned that when we gave $500,000 we were told that would be it,” Giertuga said.
“I appreciate the fact that it is 11 jobs but this is $1.1 million so far. Are they going to come back in five months and say ‘we need more money’? We’re not in the healthcare business that’s Ontario. That’s their issue and they need to come to bat for this.”
