Council squeamish on Canada Games
Questions raised as figure presented for $52-million event doesn't add up
Randi Beers
Northern News Services
Published Wednesday, November 26, 2014
SOMBA K'E/YELLOWKNIFE
Citing unanswered questions and a vague price tag, council voted Monday evening to move cautiously toward the possibility of hosting the Canada Winter Games in 2023.
John Stephenson, president of the Yellowknife Ski Club, encourages city council to move forward with a bid to host the Canada Winter Games in 2023 during Nov. 17 Municipal Services Committee meeting. - Randi Beers/NNSL photo |
Last Monday, administration submitted a recommendation that council commit to taking the necessary steps to host the games and divert funding toward the city's contribution to capital costs starting in 2015. But council has instead opted to direct administration to do a feasibility study into whether Yellowknife can afford the games and set aside the decision to divert money for now.
Administration estimates the city will have to contribute $17.7 million toward the $52 million cost of the games. Some of these expenses would be covered by offering in-kind services such as administrative work, vehicle use and technical support, according to Grant White, director of community services.
This number could change, said White, because the $17.7 million figure includes a "worst case scenario" of constructing the $22-million athlete's village using temporary accommodations.
Further, the Canada Games funding model, which splits the cost of hosting between federal, territorial and municipal governments, is under review. The model currently makes federal and territorial governments each responsible for 35 per cent of capital costs with municipal governments responsible for the remaining 30 per cent. The Canada Games Council will announce any changes to the funding model in 2017.
The city would also be liable for any expenses in excess of the standard operating budget.
Fuzzy numbers were a recurring theme as council grilled administration about how much the city will end up paying to host the games during a Municipal Services Committee meeting on Monday.
After seeing a list of itemized capital costs, Coun. Bob Brooks asked White why required pool upgrades weren't included in the $3.6 million estimate.
"The 2023 capital budget included a replacement pool at the time, so instead of including it in the games budget we've moved it to the capital budget," answered White.
According to an administrative memo, the city estimates the pool to cost an additional $17 million to $30 million, depending on whether council decides to upgrade or fully replace Ruth Inch Memorial Pool. The project, originally slated for 2023, would be moved up as well so the pool is complete for pre-game events in 2022.
Coun. Adrian Bell wasn't impressed with administration's aim to fast track the pool and leave the cost out of the Canada Winter Games budget.
"Obviously the pool has a cost and the reason I raise this is because Yellowknifers are going to realize the pool has a cost," he said.
"People are going to say, 'Look, all the questions aren't answered, this isn't as transparent as it could be.'"
Coun. Niels Konge also criticized the fact pool expenses were left out of the budget and noted a simple math error on one of administration's presentation slides.
"I see $7 million missed in operations (estimates) - that number is actually $27 million so these numbers don't add up," he said, referring to a slide that totaled estimated operating costs.
"I don't have a lot of faith in the numbers presented that we can do these games for $52 million."
Konge went on to mention the games in Whitehorse cost $120 million and questioned how administration is confident Yellowknife can host the games for $52 million.
While council remains hesitant to commit to the Canada Winter Games, some residents have stopped by city hall to encourage council to prepare a bid.
John Stephenson, president of the Yellowknife Ski Club, said hosting the event would be an incredible opportunity for the community.
"I encourage you to say yes to this deal," he said.
"I know the numbers are daunting and I've heard you debate smaller numbers here with great intensity, but I think we have demonstrated this type of leadership and organization in the past."
Cathie Bolstad, executive director of NWT Tourism, also encouraged the city to pursue the games, adding she was speaking as a resident and not on behalf of her organization.
"I think Canada Winter Games is a fabulous opportunity," she said.
"I think it's big, but it's a huge opportunity for us to showcase to the rest of Canada and to the world who we are and what we do."
Over the next several weeks, administration will take council's direction to establish a working group to determine the feasibility of hosting the games.
"The intention is to broaden the discussion to pull in the private sector, tourism industry and the not-for-profit sector," said Mark Heyck during a media briefing after Monday's vote.
