Bowden town council has shelved plans for a possible new community centre, saying right now at least, the town simply can't afford to build it or run it.
Council made that decision during its regular meeting Oct. 14 after receiving a presentation from consultant Mike Roma of Edmonton-based RC Strategies, plus a memo on it from Andy Weiss, the town's chief administrative officer.
Council was looking for an assessment of the feasibility of replacing the current Lions Hall, which consultants say is nearing the end of its life. The proposed new facility would span 10,000 square feet and would feature a 300-person banquet hall, stage, kitchen/bar and coatroom, as well as a meeting room.
The RC Strategies report estimated the total construction cost of a new community centre at $3.2 million. During the first year of operation, total revenue of the hall is projected to be $28,700. However, expenses are anticipated to total $142,500, resulting in an operating deficit of $113,800. On top of that, it's suggested that another $31,000 should be added to that figure to cover life cycle and capital replacement costs, bringing the total shortfall to $144,800.
In his memo, Weiss said based on 2014 mill rates, if that deficit was covered only via new taxation, the town would need to raise taxes by 17.6 per cent.
Weiss said based on 2014 mill rates, a property owner with a Bowden home assessed at $250,000 paid a total of $1,882.22 in municipal taxes.
“Raising the mill rate by 17.6 per cent would put that same home as owing $2,210 for the municipal portion of property taxes,” Weiss wrote in his memo. “This represents a $$327.78 yearly increase for this home.”
Councillors predicted residents wouldn't support a tax hike like that for a hall that will lose money like that annually.
Mayor Robb Stuart said it's “about the fifth time” the town has hired someone to study the idea of a community hall. This one builds on information from those – especially a 2011 report.
“I think it's a waste of time,” he said. “We're talking about a three-ton truck we can't afford.”
In the end, council passed a motion by Coun. Paul Webb to shelve the matter and “not proceed any further at this time.”
