A community centre for south Nanaimo could be a step closer to reality as city councillors grapple with decisions over major capital projects and how best to ask taxpayers’ permission to borrow money to pay for them.
A south end community centre, Departure Bay section of the Harbourfront Walkway and Beban Park upgrades and amenities were the focus of a governance and priorities committee meeting Monday, July 15. City staff gave an overview on the projects, which are part of council’s strategic priorities and the city plan.
Staff also sought direction to start preparing for a referendum in the spring of 2025 seeking electoral approval to borrow money to build the south end community centre and possibly include the Harbourfront Walkway and Beban Park master plan into the referendum.
Dale Lindsay, Nanaimo chief administrative officer, said the city has narrowed down a site for the south-end community centre.
“I think we’ve made some significant progress in the pre-planning of that site, including the identification of a preferred location that we’ll hopefully be able to share with the community in the very, very near future,” Lindsay said. “But it’s got to the point … where we think that the next step … is to move forward with borrowing, if we want that project to go ahead.”
A feasibility study indicates the cost could range from $100-150 million for a facility 45,000-65,000 square feet. Borrowing the full $150 million would add $232 per year in property taxes to the typical home valued at $784,000, but Lindsay said the 100 per cent borrowing example was used for the sake of simplicity.
“That number is based on the project being financed 100 per cent from long-term borrowing and repayment being done from 100 per cent taxation,” he said.
Lindsay noted other potential financing sources, including city reserve funds and potential grants, and new tools, such as amenity cost charges – similar to development cost charges – the province now allows municipalities to collect to help pay for community development projects.
The report noted the latest cost estimate for the Harbourfront Walkway expansion is now more than $40 million, and would add $62 per year in property taxes for a typical household.
The Beban Park master plan implementation could stretch from 2027 to 2032 and could include a new multi-purpose building for year-round and seasonal events, a covered multi-sports field, covered racquet sports and gymnastics facilities, Beban Pool therapy and teaching pools expansion, upgraded pool infrastructure, and renewal of HVAC systems. Depending on the scope of the project, costs could range between $30-70 million, adding another $46-108 to annual property taxes.
The report also noted financial pressures from other near- and long-term projects, such as the public works yard at $90 million; a future fire station for $20-30 million, Wellcox secondary access to Port Drive at $10-15 million, and RCMP detachment expansion for $270 million – that project’s options to be reviewed due to high cost. Lindsay cautioned the city must ensure borrowing capacity to cover major infrastructure renewal projects in coming decades it has no choice in, such as upgrades to the South Fork and Jump Creek dams.
Richard Harding, general manager of community services, said the south-end community centre would serve the area from Tenth Street south and has been an identified need since 2005.
“It would be a true community centre. Many different types of community services would be involved in this. It wouldn’t just be recreational or cultural,” Harding said.
Housing could even be included on top of the centre, he said, and rehearsal space for performing arts, health services, and a daycare centre are other possibilities. The facility could also serve as a reception centre during emergencies. Harding also noted the centre would serve a regional population, similar to Oliver Woods Community Centre, which draws users from Parksville to Ladysmith.
Councillors split the decision over moving ahead with the community centre into two motions, one to vote on moving forward with the project and a second decision on how to ask the electorate for permission to borrow the money.
Coun. Hilary Eastmure argued the centre is a long-standing “need," so the project should be put to an AAP and not bundled into a referendum.
“I am voting in favour of building it,” Coun. Sheryl Armstrong said. “I just don’t know if I like the means of how to finance it.”
The motion to build the community centre passed, opposed by Coun. Janice Perrino and Mayor Leonard Krog who supported the staff recommendation to prepare for a referendum for the three projects rather than rely on a AAP for the community centre.
“There’s not an item on this list that I wouldn’t love to see built … but by going down this path now of deciding, when we don’t have a budget and saying we’re going to go through an AAP process on one project only, given our experience with the last two AAPs? … Not the way to go, in my view,” Krog said.
The motion to ask permission from the electorate to borrow the money for the south end community centre through an AAP passed with Krog, Perrino and Armstrong opposed.
A motion to have staff provide updated costing for the walkway and Beban Park master plan also passed.
