City staff are one step closer to completing the application to the federal government for a grant to replace the arena roof.
Yesterday city council approved a motion to add the $13.9 million arena and curling club facility upgrade to the five year financial plan, committed $1.39 million to fund the project and did first, second and third reading on a loan authorization bylaw that, when adopted, would allow the city to borrow the funds for the project that aren’t covered by the grant.
The amount of $13.9 million was a cause for concern for the city councillors, as a previous report from Laurie Donato said that the project cost would be closer to $10 million.
“When I voted on that, maybe I guess I should have been more clear, but my understanding was we would be looking at a cost around there, I believe that is what the community understood as possible costing as well. It is pretty alarming to see a 40 per cent cost increase in a matter of two weeks,” said Cody Younker, councillor.
READ MORE: Revelstoke City Council approves arena roof grant application
Laurie Donato, director of parks, recreation and culture for the city, said that the cost in the original report was from a 2012 estimate and since council gave her the go ahead to apply for the grant she had the engineering firm draw up a modern cost estimate.
“The costs are significantly higher mainly due to lumber and labour costs,” she said.
Councillor Steven Cross expressed concern over committing $1.39 million to the project.
“I have a huge problem authorizing expenditure and then being told I will be able to pull it back later, in my experience once you authorize something it is very difficult to undo it,” he said.
However, Allan Chabot, CAO for the city, said that this is far from a done deal.
“This was brought forward for inclusion in the five year financial plan and for first three readings on the loan authorization bylaw because those are requirements of the grant application opportunity,” he said. “There will be a large number of opportunities, not only for council to say yay or nay to this project as it advances, but also to the community to contracting out the debt for it.”
If the grant is approved and the city decides that financing their portion of the project is the best way to go, the decision will go to a referendum.
“You don’t have authority to borrow the money,” Chabot said.
Though too early to look at other options now, Chabot assured Nicole Cherlet, councillor, that there would be opportunities for the community to fundraise and make financial contributions to the project and potentially decrease the amount the city needs to borrow.
The grant application is through the Investing in Canada Infrastructure Program for Rural and Northern Communities and could fund up to 90 per cent of the cost of the project. The application is due at the end of the month.
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