New Westminster is taking steps to borrow millions of dollars to fund a replacement for Canada Games Pool and Centennial Community Centre.
In preparation for applying for grants from senior governments for the future New Westminster Aquatic and Community Centre, the City of New Westminster is amending its five-year financial plan (2018 to 2022).
“Today’s amendment to the five-year financial plan is really allowing to put us in position so we can apply for the grant, which is a necessary process,” said Mayor Jonathan Cote. “But I think given the scale and size of this project, a lot more information reporting does need to come in terms of the implications of the different options council is going to be considering. No doubt, I anticipate that our finance department is going to be presenting more of that information in upcoming meetings.”
New Westminster resident Christopher Bell recently appeared before council with a number of questions about the financial plan, financing of the new facility, size of facility to be built and the amount of money the city will borrow to finance the project.
“How current is the city’s cost estimate of $108 million for the project, and when was that cost estimate created?” he said. “It’s pretty important. I remember just a few months back in the Sun it said that rebar and construction costs have gone up by 25 or 30 per cent over the last year alone.”
Dean Gibson, the city’s director of parks and recreation, said the city is currently using Class D cost estimates, which are “quite elemental” in nature and were developed earlier this year.
“We are working through the process right now in what we consider to be called the schematic design phase,” he said. “At the conclusion of that phase of work we will be able to prepare a more detailed cost estimate, which will be referred to as a Class C cost estimate. On that basis, we will be using those figures as part of the city’s infrastructure grant application.”
Gibson said the availability of senior government funding may “weigh heavily” on the choices the city has in terms of the scope of the project. Once the results of that grant application are known, which is expected to be some time in 2019, he said council will be in a positon to confirm the final scope of the project.
The city had been proposing to build an eight-lane pool but later directed staff to pursue two design options – a community recreation facility, as well as an enhanced competition-hosting capacity, but only if the city is successful in obtaining a “significant” federal government grant. The move came after citizens and members of the Hyack Swim Club appealed to the city to build a 10-lane pool to meet future growth in New Westminster and to enable the facility to host major competitions.
According to a staff report, the enhanced design option is expected to cost about $114 million. The city will be moving forward with a loan authorization bylaw that will identify the maximum amount of debt the city expects to incur for the project.
“We can always lower the loan authorization bylaw to be reflective of what we would actually have to borrow,” said Colleen Ponzini, the city’s acting chief financial officer. “The authorization to do so doesn’t mean that we actually turn around and borrow it – it just gives us the authority to borrow for that particular project.”
Cote said council will be making decisions in 2019 concerning the scope of the new facility. While phasing of the project is an option that could be considered, so far council has supported moving ahead with it as one complete project, Cote said.
“Ultimately, in terms of the scope of the project and whether or not it’s phased, I think those decisions will come as we get more information in terms of our success or not with federal grant funding and the more refined estimates that come in once we get more detailed designs,” he said.
