Municipal Affairs is doing what it can to help facilitate discussion between the Town of Fogo and the Shorefast Foundation, which operates the world-famous Fogo Island Inn.
The high-end and architecturally unique hotel attracts visitors from around the world, but owes the municipality business taxes following what has been a difficult two-year period caused by travel restrictions due to COVID.
Former Mayor Wayne Collins told VOCM Open Line with Paddy Daly that there is no doubt that the Fogo Island Inn has brought economic benefits to the community, but he feels that the business tax rate set for the facility which has an assessed value of $2-million is fair.
He says the previous council had agreed to come up with a break in business tax for businesses hard-hit by the pandemic. At the time they came up with a plan placing the onus on businesses to provide the financial proof to support a tax reprieve. Collins says they suggested a $50,000 cap.
He says the current council changed that to a 14 per cent reduction in business tax across the board.
The Department of Municipal Affairs is working with both sides to try to help find a resolution to the dispute. The Shorefast Foundation has declined comment on the matter for the time being.
