The City of Nanaimo, after previously deciding to proceed with a $90-million upgrade to the public works yard, will be going back to an AAP on the project.
City councillors, at a meeting Monday, July 29, voted unanimously to proceed with an alternative-approval process this fall to try to gain citizens' permission to borrow $90 million for a fleet maintenance shop, an administration building and stormwater management at the Labieux Road works yard.
Notably, the city is dropping the name Nanaimo Operations Centre, "to be more reflective of the updated project scope," said Laura Mercer, the city's general manager or corporate services, and added that the project will now be referred to simply as public works yard updates moving forward.
The City of Nanaimo had initially looked at a multi-phase plan to upgrade the works yard that would have cost approximately $163 million starting with Phase 1 at $48.5 million, but following two failed AAPs, changed the scope of the project. Council voted in favour of a "highest needs in single phase" option, to be paid for via long-term borrowing and repaid entirely via property taxation.
Mercer said the city anticipates borrowing at 4.58-per cent interest, amounting to $7.3 million in annual debt servicing. Staff previously advised council that the anticipated property tax increase related to the project would be $139 per year for a typical household.
City staff is still working on a detailed breakdown of project costs to be able to share with residents ahead of the AAP, but Bill Sims, general manager of engineering and public works, said approximately 25 per cent of the $90 million covers contingencies such as cost escalation.
The alternative-approval process will start Sept. 18 and continue until Oct. 31. During that time, citizens can register opposition to the long-term borrowing by submitting an elector response form. If fewer than 7,974 citizens – 10 per cent of the electorate – respond, the city can proceed with borrowing.
City staff will begin work on a communications plan for both the AAP and the public works yard upgrades, and intends to distribute an informational flyer ahead of the AAP period. Other aspects of the communications strategy include open houses at the works yard, advertising, website content, social media posts, and even a podcast.
Council voted unanimously in favour of the first three readings of the borrowing bylaw and also voted unanimously to proceed with the AAP.
"I personally feel this is a totally appropriate process for moving ahead with this project and I absolutely support it," said Coun. Ian Thorpe.
