INNISFAIL – After six years of planning and facing skyrocketing construction costs, the Town of Innisfail has jettisoned its dream of building a new $30 million aquatic centre that could have morphed into a full recreational multiplex.
The news came at town council’s regular meeting on Jan. 13 when Meghan Jenkins, the town’s director of community services, introduced a report with two motions for a less ambitious and expensive plan going forward.
Council was first requested to approve an Aquatic Centre Modernization Project for the existing 40-year-old facility with a total project budget not to exceed $12,266,219.
The second motion directed administration to enter into a contract with Chandos Construction and Group2 Architecture for the completion of the modernization project.
Both motions were unanimously approved by town council.
“I am personally extremely disappointed we can’t take this multiplex idea and start to build it. The reality is we can't do this on our own,” mayor Jean Barclay told the Albertan on Jan. 14. “We’ve been advocating for three years to the provincial government to come to the table to help with recreation funding.
“There was a campaign promise during the last (provincial) election there was going to be $80 million for a new community recreation infrastructure fund that didn't come to be,” added Barclay. “We need to make a decision and we need to move forward, and do what's best for the residents.”
Administration’s plan forward for the modernization project is to shut down the existing facility for eight to 10 months and have construction start in early summer of 2025. The adjoining outdoor spray park will remain open.
With the estimated project cost being about $12.2 million, the immediate plan is to cover it through town reserves, a 20-year debenture with annual payments of $966,612, a contribution from Red Deer County and community fundraising.
However, the municipality is still seeking grants from a federal Green and Inclusive Community Building (GICB) grant of about $6.3 million and up to $500,000 from the provincial Municipal Climate Change Action Centre.
Barclay noted the Town of Innisfail won’t be told for about 18 months whether the town is successful with the GICB grant application, which she feels is ‘totally unacceptable.
“And then they say, ‘well, they probably don't really need the money because they've already finished the project,” said Barclay. “So, is there an assurance?”
Jenkins said the federal grant is structured for applicants who can choose to apply while project work is already taking place. She said it was her understanding all work had to be complete by 2028.
Barclay added she was also concerned about possible payout penalties on an Alberta government debenture loan if the town is ultimately successful with its grant applications and opts to pay down the loan.
“I don't want us getting a $12 million debenture and then we find we're getting six and a half million, maybe more back, and we want to pay the loan off, and now we have a $3 million penalty to pay it out,” said Barclay, adding there might be a more prudent way to initiate project financing. “So, I'm curious about a potential line of credit to get this project underway until we know what revenue sources that are coming to us, and what that interest is, and what the cash flow looks like compared to the loan.
“I'd also like to know if we did have a $12.2 million debenture and we wanted to pay it out or half of it even in two or three years what that payment penalty would be because it would be significant over 20 years.”
Erica Vickers, the town’s director of corporate services, told Barclay she would reach out to the province to find out more about penalty calculations on government loans.
“The last time they told me it was three months interest that we would be penalized, basically,” said Vickers, adding town staff will looking at “all avenues” for loans. “We will look towards private banks as well to see if there is a line of credit or some type of loan that would be more advantageous for us.”
On another front, Coun. Jason Heistad wanted to know about the impacts to aquatic centre user groups, including the Innisfail Dolphins, Innisfail Hurricanes Water Polo Club and Cottonwood Kayak Club - Innisfail, and how the municipality will ensure “they’re coming back.”
Jenkins said the Town of Innisfail recognizes the closure will have an impact on user groups and whether they’re able to secure “other opportunities.”
She said the municipality will schedule its construction schedule as best it can around the Dolphins’ swim season.
Jenkins also said she did not know whether the town can find another facility for the kayak club for next winter.
“We'll do our best to make those connections for them and help with other facilities,” said Jenkins, adding local schools have been aware for several years aquatic centre accessibility could be an issue. “They'll (schools) probably find another alternative. They will just accept this year is not going to be a year they have swimming.”
Coun. Gavin Bates noted the Town of Innisfail has a “small number of employees” that will be impacted by the pending aquatic centre closure “one way or another.
“I assume that we've got work for them, some of them somewhere. And then as you ramp back up, one of the key people is lifeguards,” said Bates. “And I would assume you would have to work with another community or something to start figuring out who's going to come in and do what so that you're ready to go when you actually have a functioning pool.
“Those are just so hypothetical. I don't need an answer.”
However, the Albertan contacted Jenkins by email asking if aquatic centre staff, including lifeguards, would be assigned to other areas of Town of Innisfail operations or face a temporary layoff.
“The town will explore, to the greatest extent possible, opportunities to fulfill other operational needs using existing aquatic staff,” said Jenkins in response to the Albertan.
