June 30, 1998
(Development and Rural Renewal)

Anouncement on Pasadena Incubator Mall

Beaton Tulk, Minister of Development and Rural Renewal, announced a new approach to the operation of the Pasadena Incubator Mall involving the establishment of a new community-based not-for-profit corporation.

This announcement comes a day after the minister announced that a similiar approach would be taken at the Port aux Basques incubator mall. "Government's goal is to see these assets in the hands of the group where they can have the most productive economic use. We have gone through a community supported process which has allowed for full, fair and open opportunity for any group to put forward proposals for the operations of these malls. We are moving forward today after consideration of all options. The town's proposal is in keeping with the policy objectives originally associated with the malls," said Minister Tulk.

"These two announcements involve a significant transfer of assets from the government of the province to the newly established not-for-profit community-based economic development organizations," said Tulk.

"The not-for-profit community-based economic development corporations which will now operate these incubator malls are in a better position to make them work, " said Tulk. "These new bodies taking over the malls have the commitment, vision and they will be able to use the facility creatively as a economic development tool."

The new not-for-profit community-based economic development corporation has a mandate to operate the mall as a mixed commercial-incubator facility. Business support services to new business ventures setting up in the mall will continue to be provided. The objective is to support economic development within the town and surrounding area.

"The Department of Development and Rural Renewal will continue to work with people in this area to support the diversification of the economy and support new business development opportunities," said Tulk.

Tulk praised the towns and the regional economic development board for their involvement in this new approach for the malls in both Pasadena and Port aux Basques. "I consider these people to be forward thinking active community development agents in this region and I am confident in their ability to make this a vibrant operation."

The Port aux Basques and Pasadena incubator malls were established in the mid 1980s through federal-provincial funding agreements. The intent was to establish modern, efficient small-scale industrial facilities that would nurture or "incubate" fledgling new small enterprises during their formative years.

Contact: Scott Reid, Communications, (709) 729-4570.

1998 06 30                     4:15 p.m.