The CBC is reporting that the good sheep of PEI have purchased various assets in Mill River for $1,800,000. We, the good sheep, then sold what we just paid $1,800,000 to a new owner for $500,000. Simple math suggests that we sheep just lost $1,300,000.
The province (we sheep) will invest $7.6 million to assist with critical capital improvements to the property over 12 years and to cover a portion of expected operational losses for the first six years.
In 2016 The province (we sheep) provided $400,000 to MRRI (the new owner’s company) as part of the agreement, which it said was its normal operating loss for the attractions.
All of this for an operation that has an annual loss of $400,000.
What am I missing? Is this the new liberal math? What is the real back story?