Prince Albert to borrow $46M as inflation drives civic centre cost

Prince Albert City Council has voted in favour of increasing the city’s debt and borrowing $46 million to fund the new Aquatic and Arenas Recreation Centre.

“I’m pleased that it’s moving forward. It’s going to put people back to work and give us a facility we can be very proud of,” said Mayor Greg Dionne.

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.

The city’s Aquatic and Arenas Recreation Center project committee said inflation caused the cost of building it to go from $60 million to $113.8 million — double the original estimate.

The mayor and four city councillors voted in favour of a motion, four voted against it: Charlene Miller, Terra Lennox-Zep, Tony Head and Dennis Ogrodnick.

Lennox Zep voted no, saying she doesn’t agree with using the Civic Facilities Reserve Fund towards the project as the fund was made to pay for repairs to existing amenities.

“If that levy is spoken for we have to backfill $1.5 million dollars every year … and we do not have a plan to backfill, so of course, there will be a tax increase,” said Lennox-Zep.

“It will be an attractive amenity for not only our families that live here but those that are considering Prince Albert as a place to live,” Dionne said.

The combined recreation facility is replacing two 45 and 55-year-old arenas and adding a new aquatics centre with an eight-lane, 25-metre competitive swimming pool, splash and wave pool, lazy river, two water slides and a whirlpool.

The arena side will feature two NHL-sized rinks, 366 seats on one side and 608 seats on the other rink, and player and referee dressing rooms.

“We are already seeing that this will not only be a hub for recreation in Prince Albert, but also a new entertainment district that will include hotels, restaurants and retail stores,” said Dionne.

Council also approved a motion to award the construction tender to Graham Construction from Saskatoon at a cost of $105,268,000 plus GST and PST.

Dionne says with the motions approved, there are plans to have construction contractors on site within 10 days to work on the new facility.

The recreation centre will be built along Highway 3 South and include an entertainment-focused area called the Yard District, with businesses such as hotels, restaurants and a car dealership.

Dionne says revenue from property taxes from businesses surrounding the arena will help to offset the city’s debt.

At the meeting, the council also approved a motion for Signature Development to develop an additional 25-acres of land south of the recreation complex.