Grey County will not be providing financial support to the struggling Eat Local Grey Bruce but it has signed off on offering help to the business through consultation and training.
The business, which provides an online local produce delivery service recently made a delegation to county council explaining it had been struggling with debt and potential bankruptcy, and asking if the County would provide them with a $20,000 grant, adding it was working to fundraise $115,000 to pay off some of its most urgent debts.
Back on January 12th, Board Secretary Marcelina Salazar explained, rising costs and demand during the pandemic, then a dramatic decline in sales in 2022 when stores reopened, as well as a relocation when their warehouse was sold, were contributing factors to their financial struggle.
(The County purchased their location to turn into transitional housing, but Salazar added, “The county was fair and honourable in helping with expenses,” but felt the move still had a significant logistical impact on their operation).
Director of Economic Development, Tourism and Culture Savanna Myers advised Committee of the Whole at its meeting Thursday, January 26th, the ask for $20,000 was not staff could recommend Council support, explaining, “Eat Local is a commercial business and S.106 of the Municipal Act, 2001 prohibits giving a single business financial support of the type requested.”
Myers told the committee, “We truly support the vision and the mission of Eat Local Grey Bruce and we really want to see them succeed. There is no doubt in our minds there.” She added, there’s a shared understanding the business model requires a complete restructuring, and significant debt repayment.
Myers says in 2020, through the Investment Readiness Program, Eat Local worked to formalize its policies and procedures, conduct a full financial assessment and comprehensive strategic planning. Myers says the county’s economic development department can assist further by providing professional consultation and training to the board and to its producers members.
“This is something that is part of our provincial mandate as offered through the Business Enterprise Centre. It is something that is included within the current budget that we have.” says Myers adding, “Staff would really like to be able to work with the local producers to develop a focused training series to help with the transition as well, so– working with the board on one side, and producers on the other.”
Committee of the Whole agreed to go ahead with that offer.
Meanwhile, the group’s fundraising event closed January 25th, reaching its $115,000 fundraising goal.