Article appeared in the Nov 24, 2011 issue of the Interlake Spectator…
In a surprise move on Nov. 9, Gimli council informed Eric Stefanson, committee chair of Gimli’s proposed Multiplex Centre, that it would not be supporting the Multiplex project if it includes an indoor swimming pool.
“I was surprised,” said Stefanson. “I thought we were having a meeting to discuss the feasibility study.”
The multiplex committee had secured a provincial grant in the amount of $25,000 to conduct a feasibility study for the proposed project, which included an indoor pool. Gimli council wants to use this money for its own feasibility study for a smaller project which would not include a pool, however.
“The council thought that they had ownership of the feasibility study. We talked to a couple people from the province who said that if the pool is out of the picture, it changes the intent of the grant, and the grant becomes void,” said Stefanson.
One of the officials he spoke to was Dave Cain, Regional Manager for Healthy Living Youth and Seniors, Recreation & Regional Services Interlake, who confirmed that the multiplex committee still has ownership of the grant money.
“What we have decided to do is carry on with the $25,000 feasibility study that we have the grant for already, and get an in depth third party estimate on costs of the pool, and what it would cost to build, as well as the rest of the multiplex. We feel that will be acceptable to everybody.”
“We’ll need to sit down with council again (after the study is completed) and say, ‘do you want to go ahead with this?”
Stefanson has expressed concern over council’s methodology in terms of the numbers that Finance Chair, Luke Zaborosky came up with to dismiss the inclusion of a pool. As well, he is dumbfounded that council went back on its word to hold a referendum and put the decision in the hands of Gimli property owners.
“Some council members said they ran on the promise of a referendum regarding the pool. Then sometime this summer it changed to a survey, and then they decided for everyone that nothing was needed, and they knew better than everyone and cancelled the survey,” said Stefanson.
“We had a couple of CGMs look over their numbers to try to figure out how they came up with the figure of $415 ( the annual cost per person based on an assessed property value of $200,000),” he said.
One of those CGMs was Larry Markusson, retired from Diagio’s, and member of the local Kinsmen Club.
“They did some creative accounting to come up with that number. They took the Steinbach numbers (which is not comparable to the Gimli project), then low-balled the revenue. They came up with salaries of $985,000–that would equate to 23.6 full-time positions at $40,000 a year—That would be an economic boom for the community…They didn’t say anything about federal and provincial funding, or on-going fundraising. They used 5,697 permanent residents, but did not factor in seasonal residents or tourism.”
Stefanson suspects that council may want to divert the existing $250,000 earmarked for a pool to pay for repairs to the recreation centre. Recent repairs to the aging Recreation Centre in Gimli totalled about $230,000.
The original agreement, hammered out by the previous Council led by Tammy Axelson, gave them until Dec. 2010 to put the money towards a pool, but stipulated that the money could be used for another community recreational project, or be returned to rate payers after that date.
“We will try to meet with council at the end of November to ask them to keep the money until we get the feasibility study finished,” said Stefanson. “I kind of think the $250,000 is gone.”
“We’re more concerned with protecting the pool fund. It’s at $1.157 million right now.”
The pool fund was started in the 1980s, after the pool, originally built in the 1950s at the old Air Force base in the Gimli Industrial Park closed.
What follows is the resolution by Gimli council regarding its decision on the Multiplex Centre:
“Whereas the Council of the Rural Municipality of Gimli has indicated their support to
consider a Multiplex Project for the community inclusive of a community hall/performance
centre, fitness centre, common area improvements and a indoor swimming complex based on
specific funding and financial reporting conditions being completed.
And whereas to date the funding conditions have not yet been completed or confirmed
And whereas based on a preliminary review of the operational and debt servicing costs of an
indoor swimming pool complex by the Finance Committee, the Council decided that a mail
out to the property owners in the Municipality may be required to survey the property
owners to determine if they agreed the community could afford to include this component in
the Multiplex project.
And whereas after a complete review of the operational costs of a comparable indoor pool
facility in the Province, the Finance Committee has definitively concluded that the costs to
operate and fund the debt servicing of such a facility are beyond the reasonable financial
resources of the Rural Municipality of Gimli at this time.
And whereas the review by the Finance Committee indicates that the annual operational and
debt servicing cost for an indoor swimming complex will be over 1.7 Million dollars or
approximately $ 415.00 for a $ 200,000.00 property.
And whereas the expense associated with a mail out survey to the property owners would
cost the Municipality over $ 13,000.00 to complete.
Now therefore be it resolved that the Council of the Rural Municipality of Gimli accept the
recommendation of the Finance Committee based on all the financial information provided
as follows:
a mail out is not required due to the fact that the costs to operate and fund the debt
servicing of an indoor pool facility are beyond the reasonable financial resources of
the Rural Municipality of Gimli at this time.
the indoor swimming complex be removed from the project.
the Council should move forward to complete a feasibility study for a Multiplex
facility for the community with the options to develop a community hall, fitness
centre, common area spaces and improvements to the existing Recreation complex.