The Sidney Business Association delivered a legal letter to the Town of Sidney Monday with some strong wording.
The letter, signed by lawyer L. John Alexander on behalf of the SBA, recommends the Town reverse its April 23 decision to terminate a licence agreement signed Aug. 18, 2011 that allows the SBA to operate Sidney’s popular Thursday night market on Beacon Avenue.
“Both of the grounds upon which council has purported to terminate the licence are unsupportable and untenable,” Alexander writes. “In respect of the very serious charge of breach of trust, there is not a scintilla of evidence to support this allegation.”
On April 24, the town informed the SBA the agreement was terminated “as a result of an ongoing breach of trust, in particular by frustrating and acting unreasonably with respect to undertaking Section 6 of the agreement, which requires the complete evaluation of the market management and operation at the end of each market season.”
The move came after some merchants complained the market hurt their business and a task group was established to produce ideas on how to alter the set up of vendors’ stands.
The letter counters, in respect to Section 6, “[a] review is required ’in each year of this agreement’ and a full year has not even expired. Of course, the licence does not even specify who is responsible to initiate the review. Certainly there is no evidence the town called for a review.”
Sidney Business Association president Edward Connor said the town’s move is a breach of the contract. It includes a clause that states the town must give six months notice before terminating the agreement.
Sidney Mayor Larry Cross told the News Review on Monday (April 30) that council considered the line about six months notice before making the decision to terminate.
“We recently lost confidence in the [SBA] to continue operation of the market,” he said.
Cross didn’t comment on the letter – which he had not yet read – stating he wouldn’t comment on legal matters.
The letter says the SBA intends to operate the 2012 summer market, starting June 7.
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By the numbers
The letter also outlines some costs involved with the Town's termination of the contract.
It estimate net losses for the SBA at $50,000. In addition, it adds the Town might be on the hook for $100,000 in legal costs relating to dealing with vendors who are already in dealings with the SBA to be part of the 2012 market.
"Ask yourself how many taxpayers support spending $100,000 for enhancing a few merchants' opportunities […]," lawyer L. John Alexander writes in the letter.