Investing proceeds from the sale of Peterborough Distribution Inc.

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The City of Peterborough will engage with the community on how to invest the proceeds from the pending sale of Peterborough Distribution Inc., which is expected to generate between $50 million and $55 million in net proceeds, City Council decided on Monday, November 25, 2019.

Council asked to hear presentations on two potential options for investing the proceeds of the sale – a presentation on what it would look like if the City invested some or all of the funds in City of Peterborough Holdings Inc. for renewable energy generation and a presentation on how the City could invest part or all of the proceeds of the sale to create a Legacy Fund. 

The dates for the presentations will be posted once they’re scheduled and the meetings will be open to the public. 

After the presentations, the City will consult with the community to get feedback and ideas on how to invest the estimated $50 million to $55 million. Following the community consultation, Council could decide on one of the two options from the presentations, it could choose to invest in both options, or it could explore other options that emerge from the community consultation. 

City staff would report back to Council on what was heard from the consultations and with recommendations by June 2020. 

“This is the start of a public process,” said City Treasurer and Commissioner of Corporate and Legislative Services Richard Freymond. “The City will be engaging with residents on ways to invest the proceeds from the sale of Peterborough Distribution Inc. in ways that will benefit our community for future generations by protecting or growing the principal amount, which would generate ongoing annual revenue for the community.” 

With the two options that are currently being considered, the City wouldn’t spend the principal amount from the proceeds of the sale; rather, it would only spend the interest or dividends that are generated from the principal amount. The idea is that the main amount, the estimated $50 million to $55 million, would remain and potentially grow as a revenue generating investment. 

The community consultation will include a survey available both online and in hard copy as well as in-person engagement opportunities.

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For additional information, members of the media are invited to contact:

Brendan Wedley

Manager of Communication Services

City of Peterborough

705-742-7777 ext. 1636