Update 1:30 p.m.
George Burton tells BayToday that the allocation is used to make it attractive to bring companies to North Bay.
"Should the allocation not be used it gets rolled over so the fund continues to increase. Our hope is we are spending this money every year in direct investments with companies."
Why 2.5 million?
"Our experience over the past two years has been that we need to have access to enough funds to make a meaningful difference to tip the investment in our favour. To make a difference you are looking at more than a million dollars. If you look at the small to medium-sized companies we are looking to attract, somewhere in the neighbourhood of a million dollars plus and something less than two and a half seems to be the sweet spot for these companies and that's why I've asked council to make this allocation.
"We will only access this fund should there be a need again to tip the investment in the city's favour."
Burton admits he's not happy with the progress Invest North Bay has made so far but expects a better 2019.
"A lot of work goes on behind the scenes and we all wish we were talking about all the great deals we were able to facilitate but it is a long game, a slow game and everybody wants results tomorrow, including the board. It's a tough game and very competitive. We're hoping that 2019 is going to be a very good news year for the city. My hope is 2019 is better than 2018 and we're really optimistic."
Invest North Bay is looking for10 million dollars from the city over the next four years to "finalize new investments in the city consistent with its mission and mandate."
President of the corporation, George Burton makes the request in a letter dated Jan. 14 and addressed to David Euler, interim CAO, and Margaret Karpenko, North Bay's Chief Financial Officer.
The money is in addition to the $1m the City had previously committed.
"On July 29, 2016, the organization entered into an operating agreement with the Corporation of the City of North Bay for five years, ending July 29, 2021. On May 30, 2017 the Corporation of the City of North Bay passed a resolution to allocate up to $1,000,000 upon notification to the CAO and CFO of the City of North Bay by Invest North Bay Development Corporation Board resolution of a successful investment pursuant to the terms of the operating agreement," reads the corporation's website.
Burton's letter states, "The allocation will be used by Invest North Bay to finalize new investments in the city consistent with its mission and mandate. The request for the allocation increase is based on the experience of Invest North Bay to have access to capital significant enough to make a positive impact on investment decisions in North Bay's favour.
"Last year, Invest North Bay committed to a 2-year marketing plan focused on small and medium-sized enterprises, and new Canadians in the 905 and 416 areas who are looking to relocate. In addition, a 2-year commitment was made to the North Bay Jack Garland Airport Corporation for a marketing specialist for airport lands."
The Invest North Bay Development Corporation works with the City, investors and private sector partners to maximize the value of current and future City-owned assets with the focus of growing and developing the City according to its mandate.
"The mandate of the Invest North Bay Development Corporation also includes the creation of an environment that supports long-term economic and community growth.".
See: Invest North Bay hopes to report its first successful investment in the city, within the next few months
The 2017 financial statement shows Invest North Bay had assets of over $311,000.
Expenses included $77,600 in consulting fees and $6,600 for meetings.
BayToday reached out to Mayor Al McDonald this morning for comment but received no reply.