City of Regina council hears update on Lawson replacement costs, funding
Regina city councillors heard an update from administration on the Lawson Aquatic Centre replacement at Executive Committee Wednesday.
Administration’s report included both project costs and a breakdown of potential funding sources.
“This is a large complex project,” Director of Corporate Services Tim Schisler told committee. “It’s important we all consider how best to proceed in light of cost estimates we have now.”
The project aims to build a new pool in the place of the current Lawson Aquatic Centre.
Total costs of the project exceed $245 million, more than $80 million more than when plans were approved by council in March 2023.
With already more than $100 million in federal, provincial and municipal funding secured, the city is still searching for how to pay for the remaining $145 million.
Three scenarios were presented to councillors on how administration feels costs could be distributed.
“Administration continues to work on this council-approved design and plan,” Schisler said.
Administration is recommending a scenario which includes some debt funding and a one-time mill rate increase of 1.9 per cent which increases by 0.4 per cent every year for five years.
“[This option] is less risky to other important projects over the planning horizon,” Schisler added. “It eliminates the uncertainty of how those projects might seek alternative funding sources in the future.”
The report outlines for every $1 million in annual sponsorship, the dedicated mill rate can be reduced by 0.33 per cent.
“We’ve secured the funding,” Mayor Sandra Masters told reporters following Wednesday’s meeting. “We have the support from both provincial and federal governments. And I think we will have the support from some philanthropic or sponsorship places.”
(Photo source: City of Regina agenda) The debt funding would be accompanied with a 30-year servicing cost of interest which may also come with additional mill rate increase later.
Councillors will decide on a funding arrangement at its next council meeting Oct. 9 before it is finalized at budget deliberations in December.
That council meeting will also be the last meeting of this iteration of Regina city council before the civic election on Nov. 13.
‘Waiting is painful’
Identified as a priority in the city’s Recreational Master Plan in 2009, Masters ran her 2020 Mayoral campaign on brining a new Indoor Aquatic Centre to Regina.
“Because it wasn’t dealt with in 2016, it’s costing $83 million more,” she said. “The cost of waiting is painful and so a year’s delay [could] cost us more money.”
But still one councilor attempted to delay the process further Wednesday.
Ward 4 Coun. Lori Bresciani, who is running for Mayor in November’s civic election, attempted to put forward an amendment in the motion which would have administration look into repairing the Lawson and building a new aquatic centre in another location.
“We’ve heard we can do that for $60 million. That’s an option,” Bresciani said. “That makes the Lawson good for 25 years.”
“To me, that should be an option we consider,” she added.
Councillors asked how that could impact the government funding.
“If we downgrade the new component and upgrade the putting the lipstick on the old Lawson pig, do we lose some of that federal funding?” Ward 3 Coun. Andrew Stevens asked.
“There is no guarantee us going back saying we want to completely do a different project – because this is not the same project we have in front of them – they may come back and just tell us ‘No,” Ly Pham, Chief of Staff to City Manager Niki Anderson responded.
Bresciani’s amendment was found to be out of order of the motion already on the floor and was withdrawn.
It is possible she could attempt to put forward the idea again at next week’s council meeting.
“We’ll work with [Bresciani] in terms of whether it would require a reconsideration [motion] or not,” City Clerk Jim Nicol explained. “It will go as a supplemental report to council next week.”
“Then all options are on the table,” he added.
A reconsideration motion could take council back to the beginning steps of the entire process.
“The quote from [Tuesday] about the 11 of us making a decision and sticking to it resonates with this,” Stevens said. “It’s a great project. I hope we pursue it.”
“Delays increase the costs of the project tremendously,” Ward 2 Coun. Bob Hawkins said. “Everybody around this circle knows if you start renovating a building, there’s always costs you hadn’t anticipated.”
“$60 million plus for 25 years is not the same thing,” he added.
When asked why she thought this was proposed today after years of planning, Masters said, “There’s an election.”
“Even if you add $60 million for 25 years or $80 million for 50, that’s a very easy mathematical equation for me,” she added.
The discussion will continue next week.
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