Winter 2013 – Construction begins on Collingwood Aquatic Centre (above) and Central Park Arena (below)
Now we know -Two million dollars over Original Budget Approved by Council
Six years have passed and Collingwood Town Council has just received clarification of 2012 Collus sale proceeds vs. construction expenses for the two Sprung recreation structures and reconstruction of Hume Street.
Town of Collingwood Treasurer Marjorie Leonard walked through the allocation of funds from the sale of the first 50 percent of Collus at the regular meeting of Collingwood Town Council on Monday May 28, 2018.
Leonard provided Council with a breakdown of proceeds of the 2012 sale as applied to the construction of the Sprung Central Park Arena, the Sprung Centennial Aquatic Pool and the Hume Street reconstruction project.
Leonard told Council that the Town of Collingwood received $8 million dollars less legal and consulting fees for the sale of the first 50 percent of Collus to PowerStream in 2012.
“The actual sale proceeds were $8 million, however we did have $316,400 of legal and consulting fees that would be taken from those share proceeds, so in actual fact we did get $7,683,000.00 for the physical shares that we sold.”
Leonard said a recapitalization dividend was also applied.
“We also at the same time received a recapitalization dividend of $4,598,389.00, and you have to remember that the recapitalization dividend was actually the Town’s money that could have been paid out anywhere in the prior twenty years because it was just kept as an increase in retained earnings. It was held within the Collus group of companies.”
Leonard then detailed the final costs of both Centennial Aquatic Centre and Central Park Arena.
“The actual final cost of the pool was $4,895,000.00. The arena was $8,735.000.00”
— Marjorie Leonard, Town of Collingwood Treasurer
“The actual final cost of the pool was $4,895,000.00. The arena was $8,735.000.00, and the total of the two was $13,631,000.00. In the prior council, we had promised $1.5 million to the Y for an expansion of the pool area, however they did not get their $6 million to put towards that so we had the money placed in a reserve that was applied to the pool building itself. We received $158,000.00 in donations from the Clippers towards the pool. Development charges, we were able to apply, for the pool we were only able to get about $26,000.00 and $1.1 million towards the arena.”
Leonard explained that Town reserves were also tapped into for these projects.
“We had to use capital contingency reserve of $140,000.00 for the pool We had about $63,000.00 from that same reserve used on the arena. The general reserve was $434,000.00 for the pool. We had some other equipment reserves. PRC had in total $112,000.00 that was used for that, so out of the total $13,600,000.00 for the cost of the two Sprung buildings we required $10,081,000.00 of the $12,282,000.00 Collus total proceeds to apply to the Sprung buildings, and that left us $2,199,999.42 to apply to Hume Street.”
Background – August 27, 2012 Staff Report
The August 27, 2012 Staff Report EMC 2012-01 recommending Council proceed with both the Sprung build for the arena and pool promoted a fixed price “turnkey” design.
“As with the Outdoor Pool enclosure, the Insulated Architectural Membrane structure researched for this report would be provided as a “turnkey” design build arena solution. The materials of construction and insulation factors are similar, and the full costs of engineering and design are known and committed to at the time of order. A minimal allowance for permits, fees and site design would be carried with the project.”
THAT Council receive staff report EMC 2012-01 ,
AND FURTHER THAT Council direct staff to proceed with the purchase and construction of an Insulated Architectural Membrane facility for a year-round single pad ice arena at Central Park, maintaining 2 ball diamonds, the outdoor ice rink, the lawn bowling facility, and additional green space – while keeping the option to twin the new arena at a future date;
AND FURTHER THAT Council direct staff to proceed with the purchase and construction of an Insulated Architectural Membrane structure over the existing Outdoor Pool including the removal and reconstruction of the existing building, in order to provide a year-round pool to meet the community’s aquatic and competitive swimming needs.
The report states:
Total Pool Enclosure Cost $3,225,000
Site Servicing Allowance (same for all options) $ 200,000
Total Single Pad Arena Costs – $7,476,000
Accessories such as Zamboni & Score Board Costs – $ 316,000
Site Servicing Allowance (same for all options) – $ 500,000
Effect on Town Finances:
The Total Cost of the Two Buildings is $10,617,000
Accessory Costs $ 316,000
Site Servicing Costs for Both Buildings $ 700,000
Total Cost (less taxes) $11,633,000
The Town has the following funds available:
Reserve $ 1,500,000
County – portion of Poplar Sideroad construction 2010 $ 1,300,000
Collus PowerStream Partnership (to be confirmed by public) $ 8,000,000
Potential DC – Heritage Park – parking/landscaping (22%) $ 88,000
Potential DC – Central Park – arena enclosure (18%) $ 821,488
Total Available (potentially) $11,709,488
Executive Management Committee:
Ed Houghton, Acting CAO; Larry Irwin, Director of IT Services; Sara Almas, Clerk; and, Marjory Leonard, Treasurer.
With input from:
Marta Proctor, Director of Parks, Recreation and Culture, Dave McNalty, Manager Fleet, Facilities and Purchasing, Dennis Seymour, Manager Recreation Facilities
Comparison of Projected Costs to Actual Costs
Councillors went away from the Monday May 28th meeting with the Town Treasurer’s actual dollar figures presented against the projected construction costs as outlined in the August 27, 2012 Staff Report EMC 2012-01:
Total Cost (less taxes) $11,633,000
—Staff Report EMC2012-01, August 27, 2012
“The actual final cost of the pool was $4,895,000.00. The arena was $8,735.000.00, and the total of the two was $13,631,000.00.”
—Marjorie Leonard, Town of Collingwood Treasurer, Monday May 28, 2018
The numbers do the talking. Subtract the projected fixed costs from numbers provided by Staff Report EMC 2012-01 from the actual expenditures presented to Council on May 28th by Town of Collingwood Treasurer Marjorie Leonard and the numbers say the Sprung arena and pool projects were delivered at two million dollars over the original budget approved by council in 2012.
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