ACOA cash not spent on restaurant, official says

The Pier 7 development at St. John’s harbour was approved for $1 million in federal funding, but the Atlantic Canada Opportunities Agency (ACOA) insists none of it went into the controversial restaurant component. “There is no ACOA support for that restaurant,” agency spokesman Doug Burgess said Tuesday. Taxpayers’ money has gone into the redevelopment of the overall sure however. ACOA has doled out $747,000.00 so far for the Pier 7 “park” and the St. John’s Port Authority can collect another $250,000.00 when it submits the appropriate documents.

The original scope of the project submitted to ACOA showed room for an eventual restaurant but ACOA doesn’t fund restaurants, Burgess noted. He said ACOA funded the site’s kiosks because of their tourism potential. The kiosks are adjacent to the restaurant, which has been stirring controversy since the Telegram revealed Saturday that the sail-like frame being constructed for the restaurant was coming down to accommodate The Keg Steakhouse & Bar.

The St. John’s Port Authority (SJPA) had already pumped about $800,000.00 into the uncompleted restaurant project. The port authority insists it will get all the money back, including an additional $1.7 million to construct a new building, through the 20 year lease agreement with The Keg. But some local restaurateurs are upset how the project was handled in the first place. Sources have told The Telegram the port authority was repeatedly told during proposal calls that the initial building design restricted them from submitting feasible proposals. In other words, the size and layout of the building would not coincide with their business plans.

Secondly, there’s a concern the authority halted a third request for proposals last fall, decided to redesign the building, and signed The Keg last week to a 20 year lease without consulting other interested parties about the revised plan. But Sean Hanrahan, the authority’s chief executive officer, said doe process was carried out, with one public request made for expressions of interest and two public requests for proposals from 1999 – 2001.

One restaurateur, Chuck Matchim, the owner/operator of Chuckys restaurant on King’s Road, has said his associates approached the port authority more than a year ago about the initial design. Hanrahan insists that a proponent representing Chuckys specifically informed him – prior to the termination of the most recent proposal call – that they had found another location.

Burgess said ACOA did not encourage any public funding for restaurant development on the site and has no misgivings about what’s going on. “Our projects are evaluated on a project-by-project basis. The focus was an enhancement of the waterfront experience,” he said.

Pier 7 was funded by ACOA’s business development program. The development has had a storied past. In 2000, the port authority accepted a proposal by the Young Group of Cos. to build a retail/office complex with a nautical look on the pier opposite the Murray Premises. The company’s application indicated the three-storey 30,000 square foot waterfront development would cost $2 million to $3 million and was supposed to be finished in 2001. Half a year later it was announced the plan was off.

In May 2003, the authority announced it was proceeding with its own $4 million Pier 7 tourism development plan. Phase 1 consisted of the seasonal kiosks to operate from May to October. The kiosks will likely be used by tour boat ticket sellers, refreshments and crafts people, fish merchants and tourist information personnel.

Phase 2 called for the construction of a 5,600 square foot building shaped like sails with a large glass wall overlooking the harbour to accommodate a pub or restaurant. Grass and seating will surround the area. It’s that original restaurant concept that has seen the wind fo out of its sails. Pier 7 is the area where D.F. Barnes was originally located, near the Scademia tour-boat operation. The north-west section of the harbour front is situated between Bishop’s and Beck’s Coves.

The Telegram. Barb Sweet. Wednesday, March 3, 2004.