City’s portion of GTR project could equate to 1% yearly tax levy increase

CONNOR LUCZKA, Local Journalism Initiative Reporter

While the total cost of the Grand Trunk renewal (GTR) project has been historically cited as being anywhere from $43 million to $300 million, City of Stratford staff believe that the cost born by the municipality would only be a fraction of that – and could result in a relatively low tax levy if spread across many years.

As previously reported by the Times, the GTR project represents the revitalization of the former shops grounds on the edge of downtown, an 18-acre site that has been eyed for market and affordable housing, a new YMCA, a new library and much more. Council has yet to make any concrete plans for the parcel but has directed staff to investigate locating the community hub, housing the new Y and library, outside of the superstructure. As chief administrative officer (CAO) André Morin presented last month at a GTR workshop, if located outside the superstructure, the community facility could cost about $47.3, $49.9 or $65.4 million, depending on how council wishes to proceed.

At the latest and last workshop on the GTR held on April 9, Morin shared plans for long-term financial planning considerations, which included a projection of a total $15 million the city would invest into the community hub portion of the project.

Morin shared that with that figure coming from the city, $10-$15 million coming from the YMCA of Three Rivers, $4-$5 million from the Stratford Public Library, $2-$10 million coming from development charges, $1.2 million from a grant for child care and $5-$8 million through fundraising, most of the costs for the facility would be covered. A projected funding gap between $200,000 to $17.8 million is projected, though Morin spoke candidly about how that gap could be filled.

“How do we fund that potential gap, right? Is there opportunities for federal, provincial grants?” Morin rhetorically asked. “Is there opportunities for the Green Municipal Fund, which is a fund that would fund $10 million in loans, up to 15 per cent of the capital cost in grant, if you build a green building?

“… There's some opportunities there,” Morin continued. “The federal government just announced this week their funding program. Part of that is continuation of formally the gas tax. So we'll continue to get that. They're going to have a provincial stream where they're going to partner with the province, and the province will come out with some programming around again, investment in housing, etcetera. And then they have, as well, a direct to the federal government application stream, which really talks about community buildings. So you know the timing is right as well, in regards to this, where we’re at.”

Importantly, Morin said that with a regular reserve contribution of $100,000 a year through the first 10 years, $200,000 through years 11-25, and $750,000 through years 25-50 (which would be a period of post-debt and major reinvestment for the city), the asset management costs would be built in a sustainable manner.

In the modeling staff have done, around $1 million in capital transfer was shown to be a sweet spot for sustaining levels.

“That million is approximately one per cent of the levy,” Coun. Lesley Biehn pointed out during the workshop. “So you’re saying that we get these facilities for approximately a one per cent increase per year, correct?”

“Correct,” Morin answered. “Let me back that up … We're investing $15 million, or we're presuming to invest $15 million, but if all the rest of it doesn't come to fruition, or there's no provincial, federal funds to help fund whatever gap we have, then when I come back to you in a year from now, it might be there's not enough money. We can only do ‘this,’ or we need more money to put in the pot, or let's look at an alternative option.”

The next step for council and the city is to formalize agreements with the YMCA and library with memorandums of understanding (MOU). As Morin said, the roadmap presented at the workshop is meant to be a living document akin to its asset management plan – and the good news is that the city’s partners are all on the same page.

“The YMCA is ready to have resourcing and start to assist with funding that operational component of this,” Morin said. “The library is ramped up on their fundraising side of things. … We have about $300,000 in our budget for the Grand Trunk to move things forward as well …”

A special council meeting to hear public delegation takes place April 20. City council will consider a staff report with recommendations at its next regular meeting, the following Monday, April 27.