Ladysmith council members asked staff to prepare a borrowing bylaw in the amount of $13.5 million for a project on Buller Street that would include a new city hall, institutional space, and housing.
At the first council meeting of 2024 on Tuesday, Jan. 9, councillors discussed the project, which would be built on town-owned properties at 1st Avenue and Buller Street. The town anticipates obtaining elector approval through an alternative-approval process instead of holding a referendum.
The staff report noted that the town is pursuing opportunities to work with the provincial and federal governments to build housing overtop of city hall and institutional space.
“The opportunity to work with upper levels of government and achieve housing and a new city hall on the town-owned property is a great opportunity for the community,” the report noted.
The current city hall, which was constructed in the 1950s, is too small and requires staff to work out of multiple locations, the report added. The town currently rents space on Roberts Street and also utilizes an off-site storage area due to “moisture and rodents” at city hall.
Borrowing money over a period of more than five years requires the town to pass a loan authorization bylaw, which requires approval from the inspector of municipalities as well as approval from the town’s electorate.
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Coun. Amanda Jacobson asked for ballpark figures of the cost of the AAP compared to holding a referendum.
Erin Anderson, director of financial services, said the only thing comparable to a referendum is an election, which costs about $35,000 and the AAP would cost about $10,000.
“This is the first step of a long process, not the final approval of the project,” said Mayor Aaron Stone.
The town estimated the borrowing to be about $13.5 million for the city hall and institutional space. With an interest rate of 4.5 per cent over 30 years, the annual estimated debt payments would be $860,500.
Allison McCarrick, chief administration officer, estimated the process to hold the AAP and secure the borrowing would take about six months.
Councillors voted in favour of preparing the borrowing bylaw, with only Coun. Marsh Stevens voting in opposition. The borrowing bylaw is expected to be introduced and go through the first three readings at the council meeting on Jan. 23.
bailey.seymour@nanaimobulletin.com
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