Despite concerns about the current state of the economy, Guelph-Eramosa council wants to proceed with a $6.2-million recreational facility for Marden Park.
The township is applying for a Building Canada Fund grant for two thirds of the total cost for phase one of the park’s master plan – a 50,000 square foot steel structure that will house an indoor Sports field with artificial turf and an indoor track, as well as an outdoor football field.
The township will cover its portion of about $2.07-million through a debenture, which will be paid off at a rate of about $155,000 annually.
Council unanimously agreed to proceed with the grant application on Monday night, but it was not without some hesitation on behalf of at least one elected representative.
“These are hard economic times and we’re talking about building a $6-million facility,” said councillor Roger Knapp. He asked if borrowing over $2-million would jeopardize the township’s ability to borrow in the future for other unforeseen items.
Finance Manager Linda Cheyne said the debenture will in no way affect municipal borrowing capacity and she added there is virtually no risk in the move.
Councillor John Scott asked if the plans will be “shelved” if the township does not receive the federal-provincial grant.
Mayor Chris White said phase one is indeed dependent on the grant, though other aspects of the master plan would proceed at the park on County Road 30 (Marden Road), just west of Highway 6.
Parks and Recreation Manager Robin Milne said if the grant application is unsuccessful the township would then make phase two – which includes two additional full-size Sports fields – its priority and put off phase one until the end.
Phase three of the master plan includes development of the more “passive” area on the western portion of the property, Milne explained. That includes a trail system with interpretive signs, a dog walking area, an improved picnic area, parking, pond restoration work, and possibly two “mini-fields.”
There are no cost estimates yet for phases two and three, which are still in the planning stages, Milne added.
White told council he thinks the phase one facility will make money regardless of what happens with the economy.
“It’s basically revenue neutral,” he said, noting the annual debenture payments will be offset by revenue generated by the facility. “The net cost to taxpayers ought to be zero.”
Milne, however, said the inclusion of the indoor track bumped the overall cost of phase one up by about $1-million. As a result, he said it will cost taxpayers about $7.62 annually per household in operating costs.
Milne also noted it is important to consider that the master plan does not include corporate sponsorship or fundraising, which could also help alleviate the economic burden on the township.
Regardless, White said Milne is proceeding with “a very conservative business plan,” with figures based on 80% capacity.
He gave examples of other similar facilities in Acton, Cambridge, and Guelph that are “in the black” and he said there is no reason Marden Park can’t make money as well.
“It’s a regional facility,” White said, noting Guelph Mayor Karen Farbridge is in favour of the master plan, as is Centre Wellington council, which passed a resolution to that effect on Monday night.
White touted the facility for its potential to boost local economic development and address recreational needs without jeopardizing other municipal projects.
For example, he said the most urgent demand for soccer fields remains in Rockwood, and added the township will announce a new Rockwood field next year, once a location is finalized.
But the municipality should proceed with the Marden Park plans while the grant is available because similar funding opportunities may not come around again for some time, White added.
Councillor Doug Breen agreed. “It’s a unique opportunity because the funding is available now,” Breen said. “I think we should try for it.”
White said the township considered all possible projects for the Building Canada Fund, and the Marden Park facility was the best fit. He added he would never consider the project if the grant was not available.
He told the Advertiser if the township is successful in its application – grants will be announced early in the new year – it would then proceed with the debenture, with the goal of starting construction in the summer of 2009.
And if the economy really takes a turn for the worse, the township could hold off a while because it has until 2014 to spend the grant money, the mayor added.
“This is a great opportunity for us and [the facility] will be good for the entire county,” White said. “This just shoves us 25 years down the road.”
The township held a public open house to receive comments on the master plan at the Marden community centre on Tuesday night, the results of which were not known by press time. Milne said the master plan could change significantly as a result of public feedback.
