Some industries eyeing London are looking elsewhere, thanks to negative national publicity about the mayor, people involved in the deals say.

That leads to the question: Are Joe Fontana’s criminal charges undermining his efforts to promote economic development, a key to the mayor’s efforts to boost London’s sluggish economy?

The three charges Fontana faces relate to federal money used to pay for the wedding reception of his son in 2005 when Fontana was an MP and federal cabinet minister.

A London consultant, anxious to help an American firm he wouldn’t name pick a site in Southwestern Ontario, says he thinks Fontana is hurting the city’s chances.

John Kime told The Free Press Fontana’s charges and the controversy surrounding them makes business uncomfortable.

“That company said to me they don’t know that they like London very much because there seems to be stuff going on down there that is not very attractive with the municipal government,” Kime said, who beat the drum for London for 10 years.

During those 10 years, Kime was president of the London Economic Development Corp. (LEDC). Today he works with businesses as head of IBD Advisors Inc., and recently helped an offshore firm locate in Indiana.

“It is certainly my view that people who look at communities spend an awful lot more time on the website looking at what’s happening in those communities when they get close to a decision point,” he said.

His latest client is about six months from making a decision about where to land, Kime said.

Shortly after the charges were laid, Fontana was asked if they might be an impediment to him luring new industry to London.

“Absolutely not,” he said at a news conference. “London is a great city. We have a lot to offer. In fact, two days ago I met with Japanese investors.”

Since elected two years ago, Fontana has said boosting the economy to create jobs is a top priority.

“I can tell you the No. 1 concern of Londoners is the economy and jobs and opportunity,” he said this week as he unveiled the proposed 2013 city budget.

But Japanese firms, in particular, steer clear of controversy, Kime said.

“Companies that are looking to locate someplace, particularly in a foreign land, are very sensitive to the local politics and what is going on and they don’t want to find themselves in a community in conflict,” Kime added.

Fontana did not respond toFree Press calls for comment.

Mike DiCenzo heads another company having second thoughts about London. He has been looking to establish a tire remoulding operation in London but wants nothing to do with Fontana.

His Evergreen Resource Recovery was being wooed to occupy space in the former Ford of Canada assembly plant.

The Hamilton entrepreneur told The Free Press he reconsidered when he learned Fontana was involved with investors led by Jeff Lang, who is seeking to acquire the vacant plant Ford has listed for sale at $22.75 million.

Lang, principal of Blue Forest Ventures, insisted Fontana is not involved in the Ford plant venture.

“There is no business connection,” he said.

Regardless, DiCenzo said, he’s looking at an alternative site.

“The issue of his (Fontana’s) involvement won’t have us involved in that group, obviously,” DiCenzo said. His unwillingness is based on information he gleaned from business contacts in Kitchener and London.

Despite that, the Evergreen principal would like to work in the London area because he’s impressed with Western University professor Franco Berruti and his energy-from-waste expertise.

“The familiarity is there,” he said. “I like that relationship.”

For his part, Berruti said early this year he showed DiCenzo and an associate around Western’s Institute for Chemicals and Fuels from Alternative Resources (ICFAR), which Berruti manages.

But there has been no follow-up, he said, not unusual with the many green energy entrepreneurs with whom he has dealt.

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WHAT OTHERS SAY



Two area mayors say they’re no longer willing to work with London Mayor Joe Fontana on efforts to promote the region because he has been a one-man show for some time and criminal charges make it tougher to deal with him.

Sarnia Mayor Mike Bradley

About a land deal at Sarnia airport for green power company Omniwatt Inc.:

Bradley said Fontana called him shortly after the 2010 municipal election on behalf of Omniwatt. Fontana was Canadian director of the German firm and Bradley was left puzzled over whether Fontana had contacted him for private business reasons or political ones.

Omniwatt has an office in London, where Fontana’s daughter, Jennifer Owsiak, is administrative assistant.

The firm partnered in a venture that erected $800,000 worth of solar panels on the roof of the Boys’ and Girls’ Club of London.

Two months after the Sarnia contact, on Feb. 10, 2011, Fontana treated two Omniwatt directors to a meal at Bertoldi’s restaurant in London, charging city taxpayers $156.93. “Meeting with Torsten Scholl and Paul Vesel,” was Fontana’s explanation.

Vesel told The Free Press Fontana is no longer a director of Omniwatt, but said he couldn’t recall when the mayor left.

About the regional fight to retain VIA service, cuts that have left Sarnia city with just one train a day:

“I’m not sure the group of mayors want to be connected now at all with Joe at another meeting,” Bradley said, referring to the charges. “We should have been meeting again.”

A second mayor didn’t want his name used for fear of further souring an already bad relationship with London’s mayor. Some of what the out-of-town mayor said:

“Joe’s personal style doesn’t mesh with the co-operative, collegial, ethical relationship that exists among many of the mayors, economic developers and senior staff.”

London has only a “tenuous” connection to other cities in the region through the Southwest Economic Alliance (SWEA), the mayor said.

chip.martin@sunmedia.ca

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