City will not fund Nanaimo Recycling Exchange facility

Councillors vote 6-2 against granting NRE’s request for $6.05 million plus interim costs

The City of Nanaimo will not contribute $6.05 million to build a new zero-waste, non-profit recycling depot.

Nanaimo city councillors, at an in-camera meeting Monday, voted not to provide an annual operating grant to the Nanaimo Recycling Exchange for debt servicing on a mortgage, according to a city press release.

“The decision not to fund operations of the NRE came after considerable deliberation and was not a decision taken lightly,” the press release notes, adding that the vote was 6-2 and came after councillors received “advice from both legal counsel and finance staff.”

The NRE had asked the city for $6.05 million plus up to $600,000 to cover costs between the shutdown of the old facility and startup of a new one.

“Council wishes to thank the NRE for over 25 years of dedication to the reuse, reduction and recycling of waste,” the city press release notes. “At this time, other operators have committed to filling the void left in the Nanaimo Recycling Exchange’s absence.”

RELATED: City will look into legalities of whether it can support NRE

RELATED: Nanaimo Recycling Exchange presents draft business plan

RELATED: Nanaimo Recycling Exchange closes its gates

This article will be updated.

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