Legacy MLC Business Plan LegacyMLC_Business_Plan_040119 | Page 8

RISKS AND RISK MANAGEMENT
The following potential risks in controlling the Legacy MLC have
been identified and considered:
Political Risk
Legacy MLC relies on community support and engagement
to ensure the success of its projects. Delays associated with
consultation process or a lack of interest from potential
communities could impact organizational timelines and operating
budgets. Additionally, there may be pressure from communities to
locate in their area for political or perception reasons.
These risks will be addressed by ensuring that communication
with our community partners remains a priority. Additionally,
Legacy MLC will leverage the intermunicipal and local community relationships of Lac Ste. Anne County Council to help
the public understand the financial and business minded decisions Legacy MLC will pursue.
Revenue Risk
Legacy MLC will be working in communities that offer little, if any, private investment and market activity. Uncertainties
regarding yields, rent levels, sales price levels, inflation and interest rate levels, absorption, demand and supply could
impact the financial performance of projects.
In addition to engaging in market research, revenue risks will be mitigated by focusing on participation in projects
with the highest level of certainty. For example, the six municipalities that operate the ORMC have made a financial
commitment to the continued operation of a medical facility in Onoway. This commitment and the financial support of
the partner municipalities greatly reduced the risk of default in a project of this nature.
Cashflow Risk
Legacy MLC is undertaking a Community Economic Development approach that prioritizes obtaining earned revenue
to offset the cost of its activities. In the short term, cash flow may be insufficient to meet required payments of principal
and interest, and to pay operating expenses.
Lac Ste. Anne County will provide the initial loan for the initial project of Legacy MLC. Cashflow capacities will be gained
through the collection of lease payments from the ORMC and the repayment of the loan to the County. Legacy MLC will
not be dependent on the County for its ongoing operations, however the County may provide similar access to capital to
support additional projects. Legacy MLC will also consider Private Public Partnerships (P3) funding opportunities.
Staffing Risk
Legacy MLC will be relying heavily on the staffing support provided by Lac Ste. Anne County. At least initially, Legacy
MCC will be staffed primarily by County staff balancing Legacy MLC efforts with the requirements of their employment
with the County. The County may need to balance the demands of other strategic planning initiatives and the objectives
pursued by Legacy MLC.
Market Impact Analysis
A Market Impact Analysis is not required as Legacy MLC will be pursuing only projects where the return on investment is
too low to attract private developers and capital investment.
Municipally Controlled Corporation Business Plan
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