THUNDER BAY – City council affirmed its decision not to award a tender for a proposed multi-use indoor sports facility Monday night, leaving the project’s future uncertain.
Councillors had voted 7-5 not to go forward at their last meeting on March 8, citing the facility's rising price tag and the uncertain financial impacts of COVID-19.
On Monday, councillors voted along the same lines to ratify that decision without any additional discussion.
Mayor Bill Mauro expressed disappointment with the decision in a statement provided to Tbnewswatch Tuesday, pushing back on objections raised by council colleagues.
“We put in place a financing plan that would have minimal impact on the tax base and have confirmed the cites [sic] financial situation relative to COVID-19 is solid," he said. "This was a project that would have distinguished our community from many others and provided a host of benefits to Thunder Bay.
"A majority of Council has now said no to the tender award and next steps, if any remain to be determined."
The estimated project cost recently rose beyond $37 million ($39 million with builders risk insurance and a construction contingency) based on the lowest bid, from Tom Jones Corporation.
The real cost to the city is estimated at roughly $46 million over 25 years, thanks to around $8.8 million in interest payments on a $16.6 million debenture necessary to fund the project.
Taking out that debenture would cost the median residential property owner an estimated $22.65 annually over the 25-year period, city treasurer Linda Evans has said.
The facility remains approved in principle, following a 9-4 vote in August of 2020 to put it to tender. Four councillors who voted yes at that time had changes of heart when it came to awarding the tender (councillors Aiello, McKinnon, Oliver, and You).
Several councillors who voted against awarding the tender said they remained committed to seeing an indoor turf facility built, but expressed the need for a pause due to the pandemic. Others, like Coun. Mark Bentz, simply balked at the price tag, suggesting the project needed to be redesigned to lower it.
Fifty per cent of respondents to community consultation performed in the summer of 2020 were opposed to moving forward with the project - either entirely, or at that time - while 35 per cent clearly supported it. City manager Norm Gale also recommended a delay in August.
Councillors Aiello, Bentz, Hamilton, Johnson, McKinnon, Oliver, and You voted not to award the tender Monday; Councillors Ch’ng, Foulds, Fraser, Ruberto, and Mayor Mauro voted in favour. Councillor Trevor Giertuga is on a leave of absence.
