Township begins arena work with a debenture

By Cecilia Nasmith

Alnwick-Haldimand Township is going the debenture route, rather than waiting for project fundraising to begin, to replace the Grafton Arena floor.

The report from treasurer Paul Davidson at their Tuesday council meeting spoke to the financing side of the replacement, which consists of applying for a debenture for the full amount of $2,332,000 (approximately $1.4-million under the estimated budgeted amount, the report noted).

This approach can coexist with a fundraising campaign, Davidson explained – while the entire amount will be made available in the debenture, that doesn't mean the whole thing must be spent. If someone donates $500,000, for example, that amount can be used and therefore not taken from the debenture.

Getting the money from a debenture can take two or three months, he added, during which time early expenses will be covered from the township's own bank account and reserves. These amounts can be replenished when the debenture process is completed.

Councillors Greg Booth and Mary Catherine O'Neill – the two who voted against the debenture when O'Neill requested a recorded vote – were concerned that there was no mention of contingency funds. Chief Administrative Officer Dave Dawson expressed confidence that this was built into the bid, but the councillors were not happy about not seeing a specific amount.

O'Neill also delivered a statement that said taking this approach would impose some $1,259,860 in interest costs on to the taxpayers. She also pointed out that this is not the entirety of the arena-replacement project – how will the remainder be funded, she asked.

“This is a needed project,” Councillor Mike Ainsworth said.

“We are saving infrastructure. We can't wait for the wall to fall down.”

Ainsworth referred to Davidson's report, which estimated an additional $21 annual cost to the average homeowner over a two-year period.

Later in the meeting, the contract for this job was awarded to J. J. McGuire General Contractors Inc. for $2,257,000 plus HST, plus an additional $75,000 plus HST for a low-emissivity ceiling. It was the second-lowest bid, but the report from Parks, Recreation, Facilities Interim Manager Zach Zarry said that “the lowest submission was deemed non-compliant and disqualified.”

And while the ceiling part was an addition to the original tender, “the recommend including the separate price for the low-emissivity blanket as part of the project to improve the overall performance of the building envelope and maintaining ice in shoulder-season-weather temperatures.”

Work should begin the first week in May, with completion expected by the end of October.

Councillors agreed that user groups need to be kept up to date on the project – though, as an operational issue, how to do so is not for council to decide.

Zarry said that the contractor anticipates ice in place by the end of October. If that changes, he said, “there will be contacts to user groups.”