Alnwick/Haldimand Staff Can Proceed with RFP for Grafton Arena Repairs Project

Pete Fisher
4 hours ago
• Categories: City Hall, Local

Two weeks later than it could have happened, Alnwick/Haldimand Township council gave staff the go ahead to issue a Request for Proposal (RFP) for the Haldimand Memorial Arena’s arena floor replacement and structural inspection project.

The issue of critical repairs at the Grafton facility has been the subject of debate at recent meetings following a notice of motion that was brought forward by Councillor Mike Ainsworth in an attempt to speed up the project.

He said fundraising would still be important to help cover the full or partial cost of the estimated $3.75 million project, but that staff could look at other avenues including loans, development charges and grants to get it moving so that work could begin next spring.

Staff suggested an RFP should be issued immediately in order to get a project engineer in place in time, but didn’t get the go ahead two weeks ago and were told to bring a financial report to council first.

CAO Dave Dawson previously cautioned that a full financial report would be challenging due to variables such as not knowing how much the fundraising committee will raise.

His report to council this week focused on the cost of a loan, based on if there was no funding from other sources.

“If the Township were required to fund the full project amount of $3.75 million, the Township has the ability to borrow the full funds through a bank loan,” the report states. “Currently, the bank can offer the township a rate of 4% to 4.5%. If the Township borrowed the entire funds at a rate of 5% for the following terms, the repayment amount per month would be as follows: 5 years – $70,767; 10 years – $39,774; 20 years – $24,748; 30 years – $20,130. The Township will look into development charges once a new development charge study is completed. Staff also continue to look into debentures and sales of surplus land.”

Councillor Mary Catherine O’Neill raised concern that council asked for a financial plan back in May and has yet to receive one.

“Six months later we have this plan in front of us that is not a plan at all,” she said. She wondered how they strike a balance between the arena project and all of the other budget pressures in the township.

O’Neill said the project will raise the tax levy and the total project would come in at more than $4-million by the time a loan is repaid.

“I want this to be successful and we need a successful plan for this to proceed,” she said.

Councillor Mike Ainsworth said this kind of process might be needed for other facilities in the township as well, but the arena, which he previously said is on borrowed time, is a priority.

Ainsworth reminded the report is based on paying back the full amount, not factoring in fundraising and other possible revenue sources.

Mayor John Logel suggested the repairs could get the township another 20 years out of the arena, so cautioned against going for a 30-year loan, though quipped he hopes Ainsworth can put together the whole $3.75-million “in the next couple weeks.”

Logel also reminded that development charges could help pay for some of the project once that study is completed.

Deputy Mayor Joan Stover noted fundraising has been put in place for the project and this issue goes back to the previous council that suggested the arena should be fixed or closed.

“It just stagnated. Now we’re at a situation where we’ve decided, we’ve got the fundraising in place, this is how we have to move forward,” Stover said, noting she’s excited about the fundraising team that has diverse backgrounds.

She said “3.75 million is scary, but the excitement and the ideas and the experiences that have come around that table, I’m very hopeful that money will be coming through in the next year. I don’t have a crystal ball, I don’t know how much will be coming, but we have made a decision. I’m very confident in moving forward with this and starting the process.”

Logel noted a plan needs to be in place and the project started if there’s hope of getting funding from the province.

O’Neill asked the CAO, as she has at previous meetings, when council can expect the financial report as requested in May.

Dawson said he didn’t have an answer.

“At some point we need something more than telling us that you went onto a mortgage calculator and found out how much a month it would be,” O’Neill said.

“That’s a little inappropriate Councillor O’Neill,” Dawson replied. “That’s a direct insult to our staff. I don’t appreciate that. That’s an insult to our director and treasurer,” he added and started to continue before being cut off by the mayor.

Logel said tough decisions have to be made at the council table.

“We have to respect each other when we sit at the table and not make those accusations so I would appreciate if it didn’t happen again Councillor O’Neill.”

Councillor Greg Booth agreed with Ainsworth that $3.75 million is the worst case scenario for the township to cover the entire amount, but said he’s hopeful the fundraising will go well.

“This is something that has gone on for many councils…and if we keep putting it off it just gets worse and worse,” Booth said.

He agreed with authorizing staff to send out an RFP.

The motion was carried 4-1 with only O’Neill in opposition.