NDP money woes (Party takes out $12M mortgage on Jack Layton building)

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robbie_dee
NDP money woes (Party takes out $12M mortgage on Jack Layton building)

Alex Ballingall, "NDP takes out $12M mortgage on Jack Layton building," Toronto Star 14 January 2019

Quote:
OTTAWA—Facing an ugly balance sheet and a drop in supporter donations, the New Democratic Party has mortgaged its national headquarters near Parliament Hill for $12 million.

Property records show the party inked the mortgage for the Jack Layton Building with the Bank of Montreal on Aug. 30. The mortgage included an “assignment of rents” agreement, a form of collateral that says revenue from tenants in the building at 279 Laurier Ave. W. in downtown Ottawa can go to the bank if the party can’t repay the loan.

This is the first time the NDP has mortgaged the building since it bought the property for $3.5 million in 2004, the party says.

“The Jack Layton Building was purchased in whole as an asset for the NDP. Using an asset is common practice,” NDP national director Melissa Bruno told the Star in an emailed statement Monday.

“The NDP is focused on working hard to make life better for Canadians because we believe this is not as good as it gets and that we can do so much more, together.”

On the plus side, if the NDP bought the building in 2004 for $3.5M and now it can carry a mortgage for $12M it looks like the Party made a pretty shrewd real estate move. Assuming a maximum commercial mortgage ratio of 75% the building must be worth at least $16M today, which means the party almost quintupled its investment over 15 years.

On the downside the Party is going to have to do a lot of fundraising to pay that nut off and if fundraising was really going well maybe it wouldn't have needed such a big mortgage. Is the reporter really correct that this is the first time the Party has mortgaged the building? I am surprised it did not see fit to do so in previous elections, if "using assets" to finance election campaigns really is "a common practice" as Ms. Bruno says.

robbie_dee
WWWTT

Thanks for bumping robbie_dee or I would have missed this important thread!

So the Toronto star did a title search in Ottawa, or they know a real estate agent whom through their agency has access to the data. Wow! Fucking dirty games looking for shit to smear with!

The Toronto star is a garbage news provider. 

They must be seriously worried about their liberal imperialist masters to stoop this far to try to find anything to smear The NDP 

I remember the same being done to Mulcair when he was leader of the opposition 

Debater

The Toronto Star is one of the only non-Conservative media outlets remaining in Canada.

Would you prefer that *all* our Canadian media support the Conservatives?

robbie_dee

I'm not sure why conducting some basic investigative reporting about the financial status of a major Canadian political party in the run-up to a federal election is  "fucking dirty games looking for shit to smear with".  But it sounds like you'd rather attack the messenger than talk about the fact that the NDP is leveraging its assets to make up for lackluster fundraising, with apparently rather unclear prospects as to how to pay it back.

WWWTT

Debater wrote:

The Toronto Star is one of the only non-Conservative media outlets remaining in Canada.

Would you prefer that *all* our Canadian media support the Conservatives?

Spoken like a true anti NDP liberal hack!

Oh and by the way liberal imperialist =conservative imperialist. 

Debater

The Toronto Star endorsed the NDP in the 2011 Election.

WWWTT

robbie_dee wrote:

I'm not sure why conducting some basic investigative reporting about the financial status of a major Canadian political party in the run-up to a federal election is  "fucking dirty games looking for shit to smear with".  But it sounds like you'd rather attack the messenger than talk about the fact that the NDP is leveraging its assets to make up for lackluster fundraising, with apparently rather unclear prospects as to how to pay it back.

What you call messenger, I call imperialist servants. 

The imperialist invention of western democracy is controlled by money. You either don’t know this or are diverting away from this with this stupid game your playing. You pick whichever one it is. 

WWWTT

Debater wrote:

The Toronto Star endorsed the NDP in the 2011 Election.

Oh ya sorry I forgot, that was the election when Jack Layton, then leader of the NDP won and became prime minister of Canada. How can I forget?

josh

The Bank must figure the NDP is credit worthy because it anticipates it will be under new leadership after 2019.

robbie_dee

josh wrote:

The Bank must figure the NDP is credit worthy because it anticipates it will be under new leadership after 2019.

The NDP is probably hoping for that. A return of fundraising prowess for the NDP would be a happy outcome for the bank, too, but if that doesn’t happen the bank can also just take the building.

I think it should be a serious concern for Party members that the NDP may be leveraging its long established assets to fund an election campaign that’s been scheduled for four years. If things don’t work out it’s not just a bad election result there’s potential for long term damage to the party as an institution as it labors to pay off its debts rather than organizing and rebuilding. And what if the result this fall is an unstable minority? What will the NDP do for money if it has to fight a second election six months after the first?

WWWTT

Those are legitimate concerns robbie_dee. But there’s no guarantee in politics, let alone for the federal NDP. 

Western democracies are fixed around money money money. Intentionally to make it harder for socialist political parties who never have the deepest pockets. Using a property is actually a good practice. 

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

What I want to know is whether the traditional membership is no longer donating (if so, is the NDP not actually ready for an off-white leader?) or is the "expanded" ethnic membership not actually willing to contribute to the party's success (or perhaps lacking an understanding of the need)?

(I actually suspect there's some combination of factors at work here.)

kropotkin1951 kropotkin1951's picture

Lard Tunderin Jeezus wrote:

What I want to know is whether the traditional membership is no longer donating (if so, is the NDP not actually ready for an off-white leader?) or is the "expanded" ethnic membership not actually willing to contribute to the party's success (or perhaps lacking an understanding of the need)?

(I actually suspect there's some combination of factors at work here.)

I am sure that the Quebec numbers are worth exploring, given the spike in membership for a few years. Is that the expanded "ethnic" vote you are referring to?

Lard Tunderin Jeezus Lard Tunderin Jeezus's picture

kropotkin1951 wrote:

Quote:

I am sure that the Quebec numbers are worth exploring, given the spike in membership for a few years. Is that the expanded "ethnic" vote you are referring to?

No, I am referring to the influx of new NDP members during the leadership race who supported Jagmeet Singh, and made him the leader of the NDP. I'm hoping they don't think that was the end game.

The Quebec numbers may also be worth exploring, though. What was the impact of Mulcair's ouster in La Belle Province?

Debater

Lard Tunderin Jeezus wrote:

The Quebec numbers may also be worth exploring, though. What was the impact of Mulcair's ouster in La Belle Province?

Mulcair's outster seems to have caused about a 10-point drop for the NDP in Quebec since 2015.

(Eg. from about 25% in October 2015 to about 15% now).

robbie_dee
Sean in Ottawa

I think we knew that, however, seats have won on a shoestring before.

 

josh

Well, then they won’t have to worry about spending a lot of money.

Mighty Middle

Adam Radwanski of the Globe and Mail tweeted

"As another New Democrat put it to me recently, this may be the sort of federal election in which the NDP treats it like running 30-40 by-election campaigns"

https://twitter.com/aradwanski/status/1094665168640970752