The City of London is one step closer to pulling out of a multimillion-dollar investment that went awry.
The strategic priorities and policy committee voted Monday to retain what’s left of a $10-million grant for the London Medical Network (LMN) approved by city council in 2015.
First conceived in 2012, the LMN is a partnership between the city and local medical researchers that was intended to create jobs within London’s medical research industry.
The deal went south after reports from the London Free Press surfaced last year that a number of companies outside of London had received funding from the LMN.
Another sour development saw Western University pull out of a funding commitment that was intended to match the City of London’s $10-million investment.
In March, Ward 5 Coun. Maureen Cassidy motioned to have the city recover what’s left of its 2015 investment, with Cassidy arguing the agreement with the LMN had become null and void.
Cassidy’s push to retain the funding earned the praise of fellow councillors attending Monday’s meeting.
The committee voted unanimously to have the LMN return the remaining $7.3-million from the 2015 investment.
A separate motion that looks to have city staff explore how the municipal funding could be best spent also passed.
A final decision on the committee recommendations will be handed down during city council’s September meeting.