City to borrow $3.9 million
Site for twin pad arena community centre to be completed this summer by Richard Gleeson
NNSL (June 06/97) - Residents of Yellowknife will have the final say on the price of the proposed $10.5-million twin-pad arena and community centre.
At last Monday's council meeting Mayor Dave Lovell laid out the financing that would support construction of the project.
"Before we have to borrow the first dollar we'll have four and a half million," said Lovell.
Most of that $4.5 million will come from a reserve fund for major facilities.
Through transfers from reserves and additional block funding this year and next, the city projects it will have a total of $6.5 million in cash available for the facility.
As a result, it will have to borrow another $3.9 million. That kind of loan will require ratepayer approval, in the form of a plebiscite.
Senior administrator Doug Lagore said the $500,000 the city has been reserving each year for the project would be enough to cover payments on the loan.
The city plans to enter into partnership agreements, providing grants of $70,000 and $20,000 respectively to the gymnastics club and the shooting club, for construction of a gymnastic facility and shooting range.
Aldermen and the Yellowknife Chamber of Commerce expressed concerns at last Monday's meeting of council over the borrowing.
"The Yellowknife Chamber of Commerce at this time cannot support borrowing to build extra facilities," said chamber past president Gabrielle Decorby.
The chamber also has concerns about the operation and maintenance costs of the facility, and would like more information about them, said Decorby.
A committee report pegs operation and maintenance costs at $285,000 annually. "It was appropriate that someone speak out about the costs of this facility," said alderman Bob Brooks.
He recommended council take up ice users on an offer to provide $60,000 to $100,000 to make one of the ice surfaces larger.
Administration was directed to negotiate with the ice users and report back to council. An engineering report indicated the larger surface would add $421,000 to the cost of the facility and an additional $57,000 in annual operating costs.
Ice users questioned the figures at a recent committee meeting, pointing out they are based on incorrect measurements for Olympic-size surfaces.
At a special meeting held last Friday, council gave first reading to the bylaw and development scheme amendments required to build the facility on Twin Pine Hill, the rocky rise across 52nd Avenue from St. Pat's high school.
One of the by-law amendments changes the zoning of the property from Open Space to Parks and Recreation. The Old Town Development Scheme currently states the city "will maintain open areas referred to as McAvoy Rock and Twin Pine Hill as undeveloped open space."
Twin Pine Hill will be deleted from that sentence.
Max Hall, director of community services, said the project is still in the planning stage. Hall said no site plan is drawn up, but one should be ready by the end of June.
Hall said the planned completion date for the project is Aug. 31, 1998. |