Whether the Mount Sima recreational facility stays open or shuts down, city taxpayers could be on the hook for more than $460,000.

At Monday's city council meeting, city staff brought forward three potential scenarios on Sima's future.

The hill's operators – the Great Northern Ski Society (GNSS) – approached council earlier this year seeking $400,000 in short-term funding to keep the hill running this year.

They also asked for the development of a long-term plan that could have seen city funding in the $400,000 range annually.

While the GNSS operates the hill, under its lease with the city for the land, if the lease is broken, the fixed assets are turned over to the city.

Council didn't come forward with the money, but was heavily involved in the closed-door Sima Summit stakeholder meetings that followed.

During that process, the territory said it would pay off the debt owed on the chair lift, now estimated at $192,221 in total including interest charges, provided the hill opens for the ski and snowboard season next winter.

After the second summit meeting, the GNSS came back with the plan that would see the city fund more than $600,000.

That was the first scenario outlined in the report to council last night. It proposes that in addition to the $622,221 the city would provide this year to cover outstanding debts, what is owed to WildPlay for last year's shortfall on the summer activities, working capital to cover payroll and other ongoing expenses, there is a projected annual shortfall of $268,000 to also be covered each year.

The second scenario would cost $549,921 and see the hill close for at least one season in an effort to avoid any further debt while still allowing the community to generate a way of seeing the hill open down the road.

In addition to spending $192,221 to pay off the debt on the chair lift, there would be:

• a $187,700 cost for security, maintenance, insurance and wind down;

• the outstanding $170,000 in debt; and

• unknown legal costs that could come from breaking the 10-year lease agreement with WildPlay.

Under that arrangement too, the GNSS may or may not dissolve, it was noted.

"There is potential revenue from the public if support for the ski hill in the future is secured,” it's noted of that scenario. "If GNSS dissolves, then administrative burden will likely fall on city staff.”

The final scenario would see the hill closed and the assets sold off.

The GNSS would dissolve at a cost of $462,221 to the city.

That would include paying off the debt on the chair lift, $75,000 to maintain the lodge in a dormant state and $170,000 to pay off the outstanding debts. For the GNSS to dissolve, it cannot be in debt under the Societies Act.

As in the second scenario, there would also be the unknown costs of breaking the lease with WildPlay.

Under that scenario, there is the potential to recoup some of the costs through the sale of assets.

The report also stated that selling any government-funded assets may require consultations and approval from the funding providers, depending on what the terms of the financial contributions were.

There would be some ongoing costs to maintaining the facility in a dormant state as well as staff resources required to manage the closure process, staff noted.

City resources are already going to staffing the hill.

The city is paying for 2 1/2 full-time equivalent positions for hill maintenance at a cost of $8,000 per month.

It also has an accountant on contract to manage Sima's books at a cost of $2,500 to the city each month.

Rob Fendrick, the city's director of corporate services, said after the last Sima Summit the decision to provide the funding for the work in the short-term was made as a "stopgap” until there was some direction on the hill's future.

The move ensures the hill's assets are protected and there is continuity in the hill's books until a direction is decided.

The funding for the positions is within the threshold that a vote by council isn't required, it was noted by Linda Rapp, the director of community and recreation services.

Council was advised of the funding for the positions, Fendrick said.

A direction will be better known next week. That's when council votes on whether to accept or reject the ski society's plan and amend the budget to pay off the chair lift debt from the general reserve.

As a number of council members pointed out during discussion last night, it will not be up to the city to decide Sima's fate.

Rather, the city's decision will be whether to accept the plan the GNSS has brought forward.

From there, it will be up to the GNSS to decide how to proceed.

Society officials have said if the more than $600,000 isn't found by Friday, the board will begin the process of dissolving the society.

Acting city manager Brian Crist pointed out the three scenarios put to council were there for cost comparison.

He noted members had requested that following a council and senior management meeting on the Sima issue.

The question for council, he said, is whether to accept the society's plan, which would provide the more than $600,000.

Coun. Kirk Cameron questioned whether another option for the city could be to say no to Sima's plan and not pay off the lift.

He questioned whether there is a scenario where Sima could be left in a dormant state with little or no cost to the taxpayer.

Fencing could be put up with an "at your own risk” warning, he argued. It would allow some time to regroup and talk to citizens and possibly look at using the lodge for other purposes such as renting it out for events and the like, he added.

As Rapp pointed out though, the cost of maintaining the facility in a dormant state is included in the third scenario, which contemplates the complete shutdown so there'd be no damage to the facility.

Coun. John Streicker asked whether the city would get more value selling off the lift as a whole or in pieces.

Fendrick noted the lift was custom-built (with the city having provided $1.6 million of the $3-million total) and would be better suited to a smaller ski/snowboard facility with the city likely to get better value if it was sold as a whole.

Based on the experience with the city's previous lift, he said, when it's sold in pieces, you don't always end up selling all the parts.

Coun. Jocelyn Curteanu then noted if the city doesn't pay off the debt on the lift and the hill shuts down, creditors could end up selling off the lift piece by piece to get their money quicker.

Saying she would rather see the city get the value for the lift, Curteanu went on to suggest that if the society doesn't dissolve, the city could lend the money to the GNSS and charge interest. If the hill ends up making it, she noted, the city would end up getting its money back.

As Mayor Dan Curtis then noted, the lift is the ski society's asset as it stands right now.

As such, it will be up to the society to decide how to proceed after council votes on whether to accept its plan next week. He encouraged his fellow council members to stay focused on that.

While the vote isn't until next week, Coun. Dave Stockdale has been the only member to express his support for funding to the hill to keep it open.

There were no presentations from the ski society nor Sima users and supporters at last night's meeting.

Shortly before noon today, a GNSS spokeswoman provided the Star with the name of a representative to comment on the next step, but that person was unavailable.