Several city councillors are looking for more financial information on the cost of operating and generating revenue on a proposed recreational multiplex in Elliot Lake.
The deferral came after the city’s director of community service Wendy Rowland presented council with a financial breakdown of costs and potential revenue related to the proposed multiplex at the council meeting Monday evening.
Council has been looking at the possibility of building a recreational multiplex since February last year and plans to put forward an application to the provincial and federal governments for possible funding. The application deadline is January 15.
Rowland, in her report, estimated the total cost of the facility would be almost $42 million. Of that the city would pay about $14 million with the province picking up 33 percent and the federal government 40 percent of the total cost if the full funding application is approved.
Council has already chosen the Centennial Arena land as its primary location for the sportsplex. It would house a new arena, pool, walking track, gym and curling rink. The arena site was chosen because it is on city-owned land and is fully serviced. It would replace the aging arena, pool and curling club and potentially Collins Hall.
Rowland said the Centennial Arena, pool and Collins Hall represent a combined operational shortfall of $691,840 based on this year’s budget and combined revenue. The curling club, she said, currently operates with a surplus due largely to volunteer workers at the facility.
When put under one roof, the facilities could generate revenue of about $775,000 and costs of about $1,070,000 and would show a combined deficit $295,000. A further $65,000 to $75,000 could be saved in utility costs. That figure was derived from a report by Colliers International, the consulting firm hired by council to look at costs associated with the multiplex plan
“This forecast is conservative based on revenue assumptions,” she stated in her report.
Rowland added that with the recreational programs housed under one roof, revenue could be expected to increase.
“Recreation facilities in Elliot Lake have completed their useful lifecycle,” she said in a summary of her report. “Investing in a new multi-use community ‘Hub’ facility will result in a healthier community, enhance mental, social and physical wellbeing and provide economic benefits. This will result in a community which is an even more attractive place in which to live, learn, work, play and visit.”
But it was a request to move ahead with the funding application that split members of council and even had some councillors suggesting the city abandon its plan to meet the provincial and federal funding deadline.
Councillor Norman Mann also voiced concerns over revenue predictions, use of volunteers in a city-run facility, referring to the use of volunteers by the curling club. He also noted the city’s portion of the total cost should come from taxes and not through a capital fundraiser in the community.
Councillor Tammy VanRoon said she could support the funding application moving forward, however she could not support the model as presented in Rowland’s report. She said additional savings could be realized by downsizing parts of the plan such as the space set aside for a fitness centre (gym) and walking track.
Councillor Luc Cyr said he was also concerned about the fitness centre and what services it would provide that are already offered by “private enterprise.”
Rowland said the fitness centre would provide a low-level exercise program not offered by other facilities in the city.
Councillor Connie Nykyforak asked whether there was any indication of how much in additional funding is available. It’s estimated that some $70 million remains for municipalities to apply for.
She also called for a clearer financial picture of the city based on a possible city cost of $14 million. The councillor also indicated she was concerned about making a decision on the project with the municipal election coming up next October.
She suggested council re-evaluate the project and not attempt to meet the January 15 application deadline.
“If we don’t apply for the funding we’ll never get it,” Mayor Dan Marchisella pointed out, referring to the provincial election coming next year and similar programs not being renewed in the near future.
Councillor Chris Patrie suggested council defer a decision on the funding application until council receives more financial information.
“All of the numbers just don’t work for me. I’m 100 percent in favour of doing this but not the way it’s drafted,” he said. “If we’re putting this all under one we should be saving substantial money.”
Councillor Ed Pearce agreed with deferring the application until more information is available to answer concerns raised by councillors. But, he added, the application deadline should be met.
“We got that date so we make the presentation You have got one kick at the can left and that’s it. It’s time to stop pussyfooting around and it’s time to say…we’re going to do it. If we don’t do it I would suggest closing up facilities next year,” he said.
Council asked Rowland to prepare a report based on concerns raised by its members. Rowland said it would be difficult, but an attempt will be made to have the information available to council at its next meeting on January 8. It was also indicated that council could hold a special meeting if the information is completed earlier.