Sports and Recreation Center update and amendment to the Loan by-law

Category : Sports and Recreation Center
April 13, 2023

The public bid opening for the construction of the new Sports and Recreation Center was held on Friday, March 31 at 11 a.m at the Town Hall. A total of 4 bids were received and a preliminary report of the results was published to the website on the same day.

The bids were all thoroughly analyzed by the architects and their recommendation letter confirmed that the lowest conforming bid for the construction of a new Sports and Recreation Center came in at $ 38,199,294.00 tax in from Sajo Inc.

The total project costs (including direct and indirect costs) went from an estimated 32.5 M$ to 39.2 M$.

The project cost estimations were updated at each phase of the project, and the funding model had been adjusted accordingly. However, the impact of rising inflation and the surge of activity in the construction industry was evident in the bids we received.

Funding and estimated impact on the average house tax bill

Project costs       $ 39,199,710
Subtract unallocated surplus   $ 3,250,000
Subtract allocated surplus (including the sale of library lot)

$ 1,945,000

Loan by-law       $ 34,004,710
Subtract grants $ 12,556,727
Subtract fundraising and other funds (provincial sales tax refund) $ 4,021,653
EQUALS: Estimated loan for taxpayers paid over 40 years $ 17,426,330

This translates to a $ 436 annual increase on the average valued house ($1,033,882).

The impact is based on an expected increase in debt service for a $17,426,330 loan paid over 40 years at a 3%* borrowing rate.

* as approved on March 24, 2023 by the Ministère des Affaires municipales et de l’Habitation in our initial Loan by-law request.

Next steps

The Town must now apply for an amendment to the Loan by-law to cover the difference in cost following the opening of the bids.

April 24 at 8 p.m.: Council will deposit a notice of motion to adopt an amendment to the Loan by-law during their regular Council meeting.

April 27 at 6:30 p.m.: Council will adopt the amendment to the Loan by-law during a special Council meeting (open to the public and livestreamed).

May 5: Those opposed to the loan by-law may sign a register on Friday, May 5 from 9 a.m. to 7 p.m. at Town Hall (Music Room).

  • If the minimum number of 391 opponents as required by law is reached, a referendum vote to approve or reject the amendment to the Loan by-law will be held according to the legislated timeline.
  • If the minimum number of 391 signatures as required by law is not reached, the file will be sent to the Ministère des Affaires municipales et de l’Habitation for approval of the amendment to the Loan by-law and a vote will be held.

Complete details on the procedure involved in a Loan by-law request may be found on our website.

Regardless whether we move forward with a referendum or a vote, there will be two voting days that will be announced in due course.

We are at a critical juncture of a once-in-a-lifetime opportunity. Whether you are new to Montreal West or have been in the Town for generations, a new Sports and Recreation Center provides an occasion to leave an enduring legacy. Consult the dedicated web page for further details and plans for the new Sports and Recreation Center .