The city will send a funding application for money from the provincial and federal governments for its planned multiplex sports facility in the near future, Elliot Lake's new Chief Administrative Officer Daniel Gagnon said.
Council voted in favour of making the application, ending months of discussion by council.
Gagnon made a presentation to council at its meeting Monday evening, outlining some of the possible funding formulas that may be part of the application to build the complex that will include a new arena, curling club, swimming pool and wellness centre aimed at providing exercise facilities for an aging population.
The cost to build the facility on Centennial Arena property is estimated at $40.9 million and would replace the city-owned pool, curling club and Collins Hall buildings and the curling club.
However, Gagnon pointed out, the application deadline previously talked about at council as Jan. 15 no longer applies. The city application would go to the province and be included in the next round of grant talks by both levels of government some time in March. Those talks will also include the financial split between provincial and federal levels.
Gagnon’s presentation was based on a report by the city’s director of community services Wendy Rowland about the cost of operating the three facilities and projected costs and revenues connected to a multiplex.
Gagnon said with the application the city could be looking at various splits in funding. That will depend on the program worked out between the provincial and federal governments. In a scenario where there is an equal three-way split of 33 per cent, the city’s contribution would be about $13.5 million. If the split is set with a 50 per cent grant from the federal government and 25 percent from the province, the city’s contribution would be $10,25 million. The best scenario would see the city’s split at 17 percent or $7 million with the two upper tier levels of government picking up the rest.
Gagnon pointed out that the operating costs of the three city-run facilities is currently just over $1 million with revenue of about $300,000 leaving the city with an annual operating deficit of $780,000.
“Every year that’s the cost of having those facilities,” he said. “This is the cost of community assets.”
“The multiplex will cost about the same in expenses annually, but it will bring in more revenue, he added.
He estimated with the increase in revenue based on expenditures, the facility will see 64 percent recovery compared to 28 per cent now.
Overall he said the new facility should create savings of about $400,000 annually that could be used for servicing any debt the city might take on as part of its contribution to building the multiplex.
“It’s palatable, it’s doable,” Gagnon said. “We’re in the ballpark we can afford this project.”
It was also noted that with a provincial election set for next year, politicians may be more inclined to support the needs of the community.