INNISFAIL – Following extensive studies and public input, the town has tabled its first go-forward plan to build a modern aquatic centre that could lead to a multiplex while creating long-term debt and increased taxes for Innisfailians.
On Feb. 28 at council’s regular meeting, administration presented an Aquatic Centre Project Update report that recommended the Town of Innisfail proceed with the new aquatic centre project, which could ultimately cost up to $25 million.
The mega-project will begin with the schematic design process, which is expected to finish in May of 2023. This opening project phase will include determining its site and reviewing options for energy, accessibility and wellness.
After considering two project delivery options, council was told the cost to get the schematic design work done would be about $600,000, more than double what was approved during last fall’s 2022 budget deliberations.
“We’ve made a decision to go into schematic design. If we’re looking for partnerships and grants then we need to move this project to that stage,” said Mayor Jean Barclay, adding that while a multiplex, which could cost up to $42 million, is not off the table the primary focus now is a new aquatic centre. “We know the existing aquatic centre is coming to the end of it’s life so we need to move forward and do something.
“This is going to determine where we build that aquatic centre, and whether this is going to be an initial phase of a multiplex-style project going forward. Our biggest constraint of course is going to be budget.”
After agreeing to change the name of the project to include “recreation centre” to ensure there’s a future multiplex option, council approved a motion by a vote of 6 – 1 to move forward with the $600,000 cost.
The extra $300,000 will come from the town’s facility reserve. Coun. Gavin Bates cast the lone opposing vote.
“I look forward to achieving a common scope of what we intend to achieve and how, and I guess we have approximately 15 months when that will occur,” said Bates, who wanted a budget amount council was “trying to aim towards” in the motion.
“I don’t feel comfortable talking twenty to twenty-five (million) and looking at only funding twenty. We all know there’s biggies that are going to come at us, with respect to land development and other things.”
Administration told council that once the schematic design process phase is completed, the town will apply for government grant funding. Council was told the project will be put on hold until 50 per cent of the funding for a $20 million budget is secured.
To cover this cost, administration is proposing a combination of a long-term debenture (government loan) and grants, as well as potential monies received from Red Deer County or through sponsorship opportunities.
Administration is already proposing that annual loan payments can be made through monies invested annually into the town’s facility reserve fund, currently at $450,900, and by higher property taxes.
Erica Vickers, the town’s director of corporate services, presented council with example payment options – based on today’s interest rates - on a 20-year Alberta government loan, with the first option with half ($10 million) being covered through grants and other funding opportunities, and the second option covering the full $20 million. Both would include the annual $450,900 reserve allotment.
This payment formula for the first option would equate to a one-time property tax increase of 3.58 per cent for Innisfailians, with the town needing to budget a $268,724 payment for 20 years.
The second payment option without grant or fundraising assistance would equate to a one-time 13.18 per cent property tax increase, forcing the town to make 20 annual payments of $988,349.
Without the annual $450,900 allotment from reserves, the annual payment for the first option increases to $719,624, and $1,439,249 for the second.
“We do need a new pool and we need to look at a future facility. As for a tax increase it is going to be needed,” said Coun. Jason Heistad when asked if he was concerned with the inevitable tax increases.
Heistad also said he believes it’s “responsible” for council to keep the option open for a future multiplex. He added that while interest rates are expected to rise soon the timing is still good financially to move forward with a large-scale project.
“If I reflect on the last 30 years it is probably the best time to build anything in any community across the province and across the country,” said Heistad.
