Cost cutting moves will likely save $50,000 at best, so the town here may be knocking on its neighbour’s door for help to cover cost overruns for the new $1.23-million Centre 2000 arena addition.
Erin council voted recently to proceed with the addition, even though the winning tender from Kiwi Newton Construction was $182,409 over the town’s original budget of $993,000 (after its GST refund).
But Town Manager Lisa Hass said cost cutting moves for the entire addition – including changing from architectural block to vertical siding for the walls ($30,000) – likely total just $50,000.
Mayor Rod Finnie said the town was hoping officials with East Wellington Community Services (EWCS) had some ideas to reduce costs on the portion of the building set aside for a food bank.
The 750 square foot space was expected to add another $126,000 to the overall cost, with $42,000 of that amount coming from EWCS (thanks to a donation by the Lions Club). But it was estimated by Kiwi Newton Construction to cost $230,000 – or 83% over budget.
“Are there ways we can finance it creatively?” Finnie asked, wondering if EWCS could fundraise the $104,000 cost overrun.
EWCS president David Robart-Morgan said that is not likely for an organization that asks for donations all year round as it is – and still has run a deficit the past three years.
“Certainly the organization is not overrun with funds,” said Robart-Morgan.
He added EWCS could promise to raise the funds somehow, but, “it would be complete bulls—.” He noted officials have already approached service clubs in the area; the Lions Club is already providing $42,000 for the food bank portion and the Optimist Club is providing storage units.
“We were as shocked as you were when those numbers came in,” Robart-Morgan said of the tender from Kiwi Newton Construction.
Councillor Barb Tocher wondered if the town could approach Guelph-Eramosa council for some money because its residents are served through the EWCS food bank in Rockwood, which the Erin location supplies.
Robart-Morgan said he would join town officials if they approach Guelph-Eramosa council.
Tocher said one of the main reasons the town ultimately decided to proceed with the addition is because it did not want to lose the $662,166 Recreational Infrastructure Canada (RInC) grant from the provincial and federal governments.
She said the town wants EWCS to help cover the cost overrun on the food bank portion – even if its done over time through an interest-free loan.
Robart-Morgan said he understands the town’s dilemma but he again stressed EWCS is cash strapped as it is, and noted one of the reasons Erin even received the grant was because town officials included the food bank in the application.
Councillor John Brennan said he does not think the town can ask EWCS to cover the cost overrun. He opined any money raised to pay back the town would take away from EWCS’ regular fundraising and the valuable work the organization does in the community.
All agreed to meeting with Guelph-Eramosa officials.
