Gatineau Delay PR

Kingston, Ontario… It is with disappointment that Waterfront Alliance Kingston (W.A.K.) must announce the postponement of the project to turn the HMCS Gatineau into an artificial reef.

Given recent developments, the management of the project believes that timelines needed for government approvals at the federal, provincial and municipal levels are difficult to meet. Their impact on supporters of the project could put at risk the long-term viability of the creation of an artificial reef in Kingston.

In both the public sector and the private sector there have been issues that have delayed completion of the package. The current requirement to complete arrangements for purchase prior to March 31st and to move the ship by April 19^th, 2002 put a very significant strain on planning, resources and the financial viability of the project.

Given the complexity and scope of the project, W.A.K. would like to extend the timelines in order to ensure the successful completion of the project. It need only take one approval not to be received to put the entire project in jeopardy. W.A.K. also wants to maximize the project’s potential as an engine for economic development in the Kingston - 1000 Islands Region.

There are many concerns with respect to risk and liability that must be addressed before proceeding with the purchase. Reports needed to allow for completion of the project have not been received as yet. These include a formal statement from the Ontario Ministry of Natural Resources lifting the moratorium on the sinking of ships in Ontario waters, or an exemption for the 1000 Islands Artificial Reef Project, conditional on the development of a provincial policy for the creation of artificial reefs in Ontario, which is currently being undertaken by MNR and consultants from the W.A.K. project. Also, further mapping of the two proposed “Howe Island” sites must be undertaken to determine which site is most beneficial so that formal permission from the Coast Guard can be obtained. It is expected that another six to eight weeks minimum will be required in order for W.A.K. to obtain resolution for these permits.

The overwhelming majority of the dive industry in the 1000 Islands region supports the project and the proposed Howe Island sites. Striving to achieve consensus within the local dive industry has been a very time-consuming exercise for W.A.K.’s Board of volunteers, diverting efforts away from project-related work.

The issue of ownership of the artificial reef is still under review by W.A.K.’s legal advisors. It is W.A.K.’s intent to gift the artificial reef to the Province of Ontario once the HMCS Gatineau has

been sunk. It is unclear at this time whether or not the Province will accept ownership of the HMCS Gatineau, as it assumes ownership of other historic shipwrecks in the area. Given the sinking site’s proximity to international waters, the role the federal government with respect to ownership of the artificial reef is also being investigated.

Approval from the Corporation of the City of Kingston for the mooring of the HMCS Gatineau at the “Block D” site has yet to be ratified. Permission to use the site will depend on W.A.K.’s proven ability to ensure that the project can be completed as proposed. This is a complex and time-consuming exercise. It is also a new addition to the task list and budget of the project.

The issues of government approvals and ownership already noted must be resolved to the City of Kingston’s satisfaction.

W.A.K.’s application to the Ontario Ministry of Agriculture, Food and Rural Affairs’ OSTAR Rural Economic Development fund for matching funding has yet to be confirmed. These dollars are critical to the financing of the project.

Finally, W.A.K.’s ability to garner financial support from corporate sponsors and to utilize the ship as a tourist attraction hinges on the ability to moor the HMCS Gatineau at the “Block D” site. Under the current timelines for the project, W.A.K. does not feel confident that it will be able to raise the dollars needed to complete the project. Again, there are “too many balls in the air”.

All of this being said, it should be noted that a tremendous amount of good will and support has been garnered for the project. Crown Assets Disposal has been very understanding regarding the delays that have been incurred by the project to date. MP Peter Milliken has been instrumental in facilitating negotiations between W.A.K. and federal departments, as well as advocating the merits of the project. City Council was gracious in the motion of good faith that brought forward and ratified, permitting W.A.K. to commence negotiations with City Staff regarding the use of City mooring facilities. City Staff in turn have been very helpful and have devoted a great deal of expertise and time to the project over the past few weeks.

The regional tourism sector has been incredibly supportive and the dive community from all over Eastern Ontario is very excited about the project. Both recognize the tremendous potential that the creation of an artificial reef in the region will have on garnering new tourism revenues as well as generating new investment into the dive tourism infrastructure. Many local interest groups have also shown their support and have presented some intriguing plans for partnership in this venture.

W.A.K. is currently proposing to push the project timelines forward one year in order to allow for full execution of the project. Discussion with Crown Assets Disposal to maintain the right to purchase the HMCS Gatineau are underway and their outcome will be critical to the completion of the project.

W.A.K. hopes to continue working with the Kingston community as well as the 1000 Islands Region to build on the momentum currently surrounding the artificial reef project. More individuals and businesses need to be energized to build the support required to bring the project to fruition. It has been a long and winding road to date and W.A.K. has gleaned tremendous experience with respect to the project and the many components involved in the creation of an artificial reef. Despite the many changes in leads, direction and support, the directors of W.A.K. remain stalwart in their conviction to see the project through.

Summary

· Proposed delay of one year to purchase the ship from Crown Assets and tow it from Halifax to Kingston

· Ontario Ministry of Natural Resources’ Moratorium on Ship Sinking still in effect

· Approval on ship sinking site from Coast Guard pending further mapping of the

· Howe Island sites

· Majority of the regional scuba-dive industry on side with the project

· Issue of ownership on the reef still pending

· Approval from the Corporation of the City of Kingston for the use of “Block D” as a mooring site is still pending

· Application for funding to the Ontario Ministry of Agriculture, Food and Rural Affairs still pending

· Matching funding through Corporate Sponsors a work in progress

· Tremendous support to date from Crown Assets Disposal, MP Peter Milliken, tourism operators, the regional dive community and municipalities in the 1000 Islands Corridor.

HMCS Gatineau – 1000 Islands Artificial Reef Project

Summary