BCA GROUP

Updated January 2010

Cape Breton's BCA Group (which is comprised of BCA Holdings Ltd., BCA Investment Cooperative Ltd., BCA Venture Capital Inc., and the BCA Foundation (in progress)) was first established as an initiative to create a pool of investment capital for businesses located on Cape Breton Island.  The group was formed as a result of an evident capital drain into major metropolitan centers. The general objective of the BCA Group is community economic development, and improving the community through the use of innovative business ventures.

The following is a brief overview of the four sister companies:

1. BCA HOLDINGS LTD. is a not-for-profit company dedicated to raising money for local business development.  It has been in operation since 1989, and is comprised of a group of volunteers.   Being a not-for-profit, no director can receive fees. BCA Holdings Ltd. concentrates on low risk development projects, as it does not offer investors income tax credits. 
   
   Typically, BCA Holdings Ltd. pays a set interest rate of up to 5%, depending upon the deposit amount.  For large deposits, BCA Holdings Ltd. can offer the security of a mortgage-backed debenture, which are held in trust by the firm of Sampson-MacDougall Barristers.  To date, BCA Holdings Ltd. has never missed an interest payment to any of its investors.
   
   A number of individuals and associations have established permanent endowments with BCA Holdings Ltd.  For instance, the interest from the Tic Butler fund aids local talent, and the money provided by The St. Vincent de Paul Fund is used to provide food for the hungry, and create jobs that reduce poverty.  It is also possible for an investor to maintain an account, and divert the interest to a charity, thus avoiding a withdrawal penalty.
   
   The issue, however, is that BCA Holdings Ltd. has only $800,000 in assets and so we need more money. More money means more development.  So, spread the word that we are reliable to pay our investors regular interest payments.
   
   Depicted below is a breakdown of our most recent investments, including how we have used our community investment pool in the past.  We have created hundreds of jobs through our community investments.
   
   Tompkins Development Ltd., a subsidiary of BCA Holdings Inc., was set up as a separate company, focusing mainly on property.  Therefore, property is held by Tompkins, such as a housing cooperative for Chinese residents in Cape Breton, which is located at 91 Park St in Sydney.
2. BCA INVESTMENT COOPERATIVE was formed in 1998, in order to take advantage of the 30% income tax credits available to Nova Scotia taxpayers.  Because BCA Investment Cooperative has the advantage of income tax credits, it was decided that the new company would focus on businesses that have increased risk associated with them.  Currently, BCA Investment Cooperative has 300 shareholders, who have invested a total of $1.4 million.
   
   The most significant project for the BCA Group, socially and economically, has been the construction of a condominium complex in Wentworth Park in Sydney.  This project cost over six million dollars.  Because BCA Investment Cooperative maintained a positive balance sheet, we were able to take on such a large-scale project.
3. BCA VENTURE CAPITAL INC. is Cape Breton's newest local development investment company.  Nova Scotia residents, who purchase BCA VENTURE CAPITAL INC. shares, are eligible for a 35% income tax credit on their provincial income taxes.
4. BCA FOUNDATION is currently in progress.

*Please note that while there is some crossover with the board of directors, these are four independent companies.

The BCA Group has a management contract with the Cape Breton Innovation Research Centre (CBIRC), which will manage all administrative affairs (as a funds manager) of the four BCA companies.

  DEVELOPMENT COMPLEX

Tompkins Institute CBU                                            Marconi Campus

Cape Breton Innovation Research Centre (CBIRC) is the BCA Group’s fund manager. 

It is currently on contract to administer all clerical duties of the four sister companies.

CBIRC manages the following:

1. BCA HOLDINGS
2. BCA INVESTMENT COOP
3. BCA VENTURE CAPITAL
4. TOMPKINS DEVELOPMENT LTD
5. BCA FOUNDATION (IN PROGRESS)

Greg MacLeod currently serves as secretary and treasurer of the BCA Group.  If you would like to contact him directly, please e-mail Greg at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

 

FINANCE COMMITTEE

Angus MacNeil, manager of Caterpillar in Cape Breton

Glenn Basso, manager of Otarion

RECENT INVESTMENTS BY BCA HOLDINGS LTD.

(Most money invested by BCA is secured through mortgages on the buildings)

 

1. Clearwater Fish plant:  When Clearwater decided to close their fish plant in North Sydney, 50 people were out of work; mostly women with few options.  Clearwater offered the facility to BCA Holdings Ltd., and realizing the devastating social and economic effects of its closure, BCA Holdings Ltd. decided to take the project on.  Currently, BCA has a top-notch manager, who has been borrowed from Clearwater Seafoods, and is processing fish roe for the sushi market in Japan.
   
   
2. Wentworth Condominium:  While many people may question the rationale as to why BCA Holdings Ltd. decided to invest in such a project, the answer is quite simple.  The project provided over two million dollars worth of work for local people, it improved the physical appearance of downtown Sydney, and it provides over $ 200,000 in municipal taxes every year.
   
   
3. Classic Frozen Foods in Sydport: When a cheesecake company went bankrupt, we bought the assets and eventually found a new operator.

 

SOME PAST INVESTMENT HIGHLIGHTS BY BCA HOLDINGS LTD.

 

TOMPKINS CENTER IN RESERVE MINES:  Reserve Mines, a former mining town, has long suffered from unemployment.  In order to reverse the devastating effects, BCA Holdings Ltd. financed a new building, which is currently home to Tim Horton’s, the Credit Union, a library, and a pizza shop.  The building added vitality to Reserve Mines, and triggered further development within the town.  Recently, the owner of the Tim Horton’s facility purchased the building from BCA Holdings Ltd.

 

A & B MECHNICAL:  When Cape Breton's largest industrial plumbing and ventilation company went bankrupt, BCA Holdings Ltd. provided the funds for the employees to purchase the company's assets.  Since the take-over, the company grew from five shareholder workers to 200 union members.  At any time, the average number of employees on the payroll of A&B Mechanical Ltd. is approximately 25.   A&B Mechanical Ltd. recently carried out a million dollar expansion, has a solid record in major contracting, and has been a model case of exceptional success.

 

BRAS D’OR LAKES INN:  Bras D'Or Lakes Inn is a hotel located in St. Peters.  Serving as the town's major facility, and after hitting bankruptcy, BCA Holdings Ltd. made the decision to purchase the facility.  Since taking over the hotel, BCA Holdings Ltd. engaged upon a variety of managers, and after losing some money on the operation, persuaded a number of individuals to purchase shares from BCA, in turn, taking responsibility for management. A couple, who are on a lease-purchase agreement, now run the Inn. 

 

EAST COAST ROPE:  In late 1992, a high-tech rope manufacturing company went bankrupt in Cape Breton. In an extremely fast procedure, the Canadian Imperial Bank of Commerce called for the sale of the assets within a few weeks.  Directors of BCA Holdings Ltd. expressed shock at the possible loss of the heavily subsidized company, and offered to negotiate.  The bank, however, refused to slow the process. Within weeks of its bankruptcy, American Manufacturing Ltd. of Louisiana, US, purchased the machinery, and attempted to transfer the equipment to the United States.  A huge community effort transpired.  Local church groups maintained a vigil in front of the plant so that the American company could not take the high tech and world-class machinery away, and BCA Holdings Ltd. quickly established a group to take over the plant under the name "East Coast Rope".  BCA Holdings Ltd. provided $ 250,000 in investment, and outside investors were recruited to put up an additional $ 750,000.  Special care was taken to assure that 51% of the investment funds remained local. East Coast Rope has been very successful in its operations.  In fact, another specialty rope company was later created as a spin-off.  This company later established a related company, called Polysteel Ltd., which, like East Coast Rope, is very successful.

 

IONA: Highland Heights Inn. We have been financing this company for two years. After a bankruptcy, we are helping to relaunch the business.

 

SYDNEY MINES COMMERCE PLACE:  In the late 1990's, many stores on the main street of Sydney Mines were vacant, with boarded-up windows.  BCA Holdings Ltd. made the decision to purchase some of the central buildings, demolish them, and erect a new building.  This initiative has triggered a revival of the downtown Sydney Mines area.

 

INGONISH SKI-HILL:  When government withdrew from ownership of the ski facility in this hard-pressed fishing community, a local group negotiated funds to buy a new ski lift.  The local group was able to leverage $ 100,000 from BCA Holdings Ltd. into a package of one million dollars, in order to build a new lift.  Because of the local group’s capital shortage, the plan is to sell the facility, and at that time, BCA Holdings Ltd. will recover their money. 

 

SOME RECENT BCA INVESTMENT COOPERATIVE LTD. INVESTMENTS

 

1. Laurentian Energy Ltd. (Sydport):  This investment includes an industrial park, 400 acres of green space on tidewater, in addition to a metal fabricating plant.
2. Dynagen:  Dynagen is a high tech company, which produces sensing devices in the Cape Breton region.
3. Wentworth Condominium:  This was a joint project with BCA Holdings Ltd.
4. J.P. Cormier Productions:  This initiative helped local residents to continue producing cd’s locally.

BCA VENTURE CAPITAL INCORPORATED

Options for Investors:

Outside of an RRSP system, simply make a cheque
payable to: "Sydney Credit Union in Trust", and note BCA
Venture Capital Inc. on the bottom left-hand corner of the cheque.

Send to:

BCA Venture Capital Inc.
269 Charlotte Street
PO Box 1201
Sydney, NS   B1P 6J9

            You will receive a certificate for a 35% income tax rebate in March

1. Transfer BCA shares into a previously purchased RRSP.  Write your investment broker a letter directing them to buy shares in BCA Venture Capital Inc., and they will contact us.  There will be no penalty or charges from companies like RBC, Merrill Lynch, Scotia MacLeod or Co-op Trust, nor is there any out-of-pocket cash payments.  Also, you are still eligible to receive your 35% income tax credit.
   
   
2. You can place new cash into your existing RRSP, and direct your agent to buy BCA shares.  Using this particular investment method, you receive the 35% provincial income tax credit, as well as the normal RRSP tax break.
   
   
3. You can do the first option for now, buying outside the RRSP, and later sell your shares into the RRSP.   For RRSP purposes, our shares are treated like money. (Of course you can do the same thing with bonds, that is, transfer them into your RRSP.)

You may apply the 35% income tax credit to your 2009 tax return, or your 2010 tax return.   Your investment is locked in for five years.  You are permitted a maximum investment of $50,000 per year ($17,500 OFF YOUR INCOME TAXES).  Some of our members will invest $100,000, and divide it equally between the two years.   In some cases, a husband and wife invested $50,000 each for a total of $100,000 - thus receiving a $35,000 income tax credit.  Of course, we will be pleased to receive amounts of $5,000 and up from supporters.  Many small investors create a large pool of money.

FOR FURTHER INFORMATION CONTACT:

            Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it              Tel: (902) 567-0000

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