Construction begins on Prince Albert’s new rec facility without provincial approval of municipal debt load

The City of Prince Albert hosted a ground-breaking ceremony to mark the start of construction for a new Aquatics and Arena Recreation Facility, despite not having approval from the province to increase its municipal debt load.

“We are in the process of negotiating that right now. We have had a couple of positive comments coming from the Minister of Finance, Donna Harpauer,” said the Mayor of the City of Prince Albert Greg Dionne.

He says the city is also setting up conference calls with the federal government to discuss the rise in construction costs and the need for more funding.

“Both funding partners have realized the cost has come up, not only for our project but every project in the country,” said Dionne. “It’s a positive signal that they are willing to look at it.”

The project was estimated to cost $60 million in 2019. Since then, city officials say inflation has caused construction costs to double to $113,888,950.

Council voted to increase total borrowing for the project to $46 million and, in turn, increase the city’s debt limit from $75 million to $120 million.

The money will be borrowed from the province through a municipal lending program. It will be paid back over 35 years at a rate of $2.5 million annually.

“That’s just out of our control (inflation) and the way of the world,” said Dionne.

The City of Prince Albert secured grant money from the federal and provincial government for the project prior to the pandemic to replace two aging rinks and build an aquatic centre.

It received $24 million from the Government of Canada Investing in Canada Infrastructure Program. The provincial government contribution is $19.9 million to the project. The city will pay the remainder of the cost.

The city’s revised funding plan for the facility has been approved by city council. The city plans to ask for an additional $24 million from the federal and provincial government or to fundraise that amount in the community.

Dionne says no new taxes are on the horizon for taxpayers in the community.

He says the city only owns 25 acres of land in the Yard District where the facility will be built. The remaining land will be developed privately and he anticipated the businesses built on that land will generate new property taxes.

“We’re going to use all the tax dollars from this 80-acre site to pay for the loan to build this facility,” Dionne said.

A spokesperson from Prince Albert Minor Hockey Association says the club looks forward to using the new facility and they plan to improve the city’s economy

“You have to pay to get things in place in a city that are going to bring in revenue,” said Director of Hockey Operations, Prince Albert Minor Hockey Association Tyson Dallman.

“We’re looking to bring in 18 – 20 team tournaments here and fill hotels and restaurants.”

Two local swim clubs echoed the sentiments.

“This new facility will allow us to host the junior provincials. So that brings the swimming community from all over the province here,” said Prince Albert Sharks Swim Club board member Lane Gelhorn.

The PA Minor Hockey Association has approximately 750-850 hockey players, Sharks Swim Club 70 swimmers and Pikes Artistic Swim Club 20 -25 members.  

In June, city council awarded the facilities construction tender to Graham Construction for $105,268,000 plus GST and PST.

Graham workers have begun construction and are adding piles and other infrastructure to the site to prepare to build the facility. The city says it will take two years to build.

A Government of Saskatchewan spokesperson said in a statement that the Local Government Committee of the Saskatchewan Municipal Board hasn't received a debt limit application from the City of Prince Albert this year.

"The Municipal Financing Corporation can provide indicative interest rates upon request to aid clients in assessing the viability of their project. These are not official terms and conditions of a loan and are subject to change,” the statement said.