TBayTel drops $15 million into the city’s coffers

The Renew Thunder Bay kitty is starting to fill up.

On Wednesday morning TBayTel made the biggest dent to completing the city’s $40-million share of the planned $130-million major infrastructure fund, dumping $15.6 million into the pot through its promised special and performance dividend to the city.

The money is over and above the annual $17-million dividend the municipally owned utility pumps into the city’s coffers.

"We are positioning our city to make sure we have the resources for our biggest dreams," said Mayor Lynn Peterson at a news conference held to announce the contribution.

Renew Thunder Bay was instituted in late 2009 as a way to help the city cover its share of costs for large projects, including the second phase of development at Marina Park and a proposed $60-million multiplex facility to replace Fort William Gardens.

The special dividend will be paid out over five years, but won’t hurt the company’s bottom line, said CEO Don Campbell.

"We review our cash require for future and present investments, and determined that this cash should flow to our owner," Campbell said, noting it was a good year for TBayTel in 2009.

"The company performed well in basically all aspects. We held our own in some. Our wireless business is growing, as all wireless business is doing. Our Internet business is doing well and our wire-line business is holding its own."

City manager Tim Commisso, who spearheaded the Renew Thunder Bay plan, said he had no idea TBayTel would give this much money in year one, adding to the $11 million already in the fund through a previous government contribution.

"This contribution of $15 million is wonderful for the purposes of moving forward with Renew Thunder Bay," Commisso said.