Negotiations have stalled between the Sault Ste. Marie Economic Development Corp. and a Toronto telecommunications firm to establish an e-commerce centre in the city.
Though talks continue between the EDC and Multi-Channel Communications Inc., one of the hurdles has been a major restructuring taking place at one of MCCI's proposed equity partners, Telus Corp., one of the largest telecommunications firms in Canada.
After working out the bulk of a framework agreement with MCCI and negotiating lease and financial arrangements since March, the EDC still has no clear timeline as to when the facility might be operating.
Northern Ontario Heritage Fund Corp. has committed $3 million toward $7.7 million in startup funding on the project.
The city closed a deal last winter with Ontario Realty Corp. on vacant Ministry of Transportation property on Old Garden River Road then sold a 3.4 acre portion to the EDC to build a 30,000-square-foot e-commerce facility and lease it to MCCI.
The facility would employ 600 individuals who would earn between $11 and $15 an hour.
If the deal should fold, the EDC is prepared to pursue another e-commerce client.
