Tillsonburg council turns down feasibility study on new rec facility

Jeff Helsdon, Local Journalism Initiative Reporter

Tillsonburg council turned down $85,000 in funding for a feasibility study for what it terms a Multi-Use Recreational Facility (MURF) at the Nov. 24 meeting, but did set money aside to complete the study in the future.

The concept of a multi-use indoor facility has been on the town’s capital project list for several years in the future, but was brought forward after a presentation by Jesse Goossens, president of Basketball Tillsonburg, and Shane Curtis, past-president of the Kinsmen Club, last December. They raised the possibility of community partnerships in building such a facility. It could contain indoor soccer fields, basketball courts and other sports courts.

At the March 10 meeting, council approved a feasibility study for the project after Andrea Greenway, Director of Recreation, Parks and Facilities, reminded council that any infrastructure funding from the province would require projects to be shovel-ready, including having a study completed. The issue was back before council Monday night to confirm funding sources for the study, but in the end, council delayed the study to a to-be-determined future date.

Mayor Deb Gilvesy said that if the study were completed and construction costs were $23 million, which was more than Goossens and Curtin estimated, it could “cripple” the town.

Director of Finance/Treasurer Renato Pullia said that if the full amount were financed, it would push the town’s debt limit to 22 per cent, approaching the 25 per cent limit. He said this would restrict debt for other projects, such as the public works yard, and a third ice pad. He explained the other issue was the capital forecast was prepared using potential development charge (DC) funding from future development in the town.

“If the town would proceed with construction prior to those DC funds being available, the town would have to finance the project through its funds, through debt, and then pay back once those DC were available,” he said.

Currently there is only $1.5 million in the DC reserve for parks and recreation use.

Gilvesy understood the need to have projects shovel-ready, but significant repairs are required at the fire hall next year. If the MURF is seven to 10 years down the road, she questioned why to do the study now.

“Everything in this report demonstrates this could literally cripple the town financially if we move forward with it, especially in the next five years,” she said.

Coun. Bob Parsons said there is a need for the MURF and questioned how long a study would remain valid.

Greenway repleid the portion of the study that looks at site selection, environmental factors, economic and social benefits would remain valid, but the costs could change.

Deputy Mayor Dave Beres, whose turn it was to present the motion, said the suggested motion was that the study go ahead with $28,000 of the funding coming from the facilities reserve and the remainder from the DC reserve. He raised the possibility of not proceeding and setting the money aside.

Parsons said with all the capital projects needed with limited funds, and this project taxing the town’s debt load, he won’t support the study.

“As much as I agree it’s needed, we just can’t afford it,” he said.

Coun. Chris Parker agreed the MURF was needed, but also had concerns about debt capacity. He was in favour of keeping the money in reserve to complete the study later.

Coun . Kelly Spencer noted the study could identify the location and questioned what else might change.

Greenway answered the majority of things that would change would be the financial pieces, maintenance costs, staffing costs of running a new facility, and the construction cost.

“If we defer it, we are we putting other people off, potentially service clubs,” said Coun. Pete Luciani, adding if the study had no future value, it would be a waste of money, but if there was some value, it should be done.

Gilvesy provided clarification received from staff that the DC money will be there, but the facility reserve money would need to be earmarked.

Spencer asked staff for their recommendation.

Pullia said it would be a prudent step, and there are several factors to consider before building a $25-million facility, including construction and operating costs relative to revenue.

“We don’t want to build a facility, and then have a half a million dollars that would have to end up on the taxes just to operate it if there aren’t enough fees being generated from users,” he said, explaining this is why it is linked to DCs and growth, with the expectation there will be another 5,500 people in town when it’s built.

“We’re not saying no to the project, we’re saying no to the project for now because it will exhaust our credit limit,” Beres said.

Luciani and Spencer delivered the final words before the vote, saying the study should go ahead.

“If the feasibility study shows it might even be more than that, or we would never make that much money, then we know, and this is over,” Spencer said. “I kind of agree if the shelf life is still going to be fine in seven to 10 years, and if the money is just going to be saved somewhere else, why not just spend it and get the feasibility study.”

The motion to proceed with the study was defeated, but a subsequent motion earmarked $28,000 from the facilities reserve to complete the study in the future.