Councillor rails against athletes' village deal
More options should have been considered for the 2007 Canada Winter Games athletes' village, a Whitehorse city councillor believes.
More options should have been considered for the 2007 Canada Winter Games athletes' village, a Whitehorse city councillor believes.
Coun. Doug Graham said Monday night he has a slew of problems with a proposed agreement for the city to assist in building the housing needed for the national event.
At its weekly meeting last night, council was presented with the memorandum of understanding to help fund the construction of the village, to be located at Yukon College.
'Probably one of the real problems is that not too much else was looked at,' Graham said in an interview following the meeting.
'And the schools may be the only alternative (for sheltering athletes), and if that's the case, then we should have looked seriously at it at some point, or the host society should have.'
A member of the host society himself, Graham said he was unaware of the problems surrounding the village until recently.
City manager Bill Newell presented the report on the proposed agreement.
He told council that when detailed budgeting and planning for the Games began, it became clear the village, which will house the approximately 1,800 athletes, coaches and managers each week of the two-week event, could not be constructed to Canada Games standards for the $2.7 million proposed in the bid package.
With that, a request for proposals was issued for construction of the village, with six proposals being submitted, and four of those qualifying, 'but none remotely close to the proposed $2.7-million net budget,' reads the report.
Details on each proposal submitted, including cost, have not been released. Games manager Chris Morrissey and host society president Piers McDonald could not be reached today, as both are out of town.
All of the proposals submitted were based on building modular units that could be dismantled and relocated following the national sporting event, the report to council noted.
Graham said it seems the host society has simply said it needs to follow the rules that the village be 100,000 square feet, so this is the only alternative.
'And maybe we should have looked at it looked at doing something with the schools that would allow us to meet them,' he said.
'Or at some point, it seems to me, anyway, with this whole Canada Games we have to take a look at it as a city and say, We're on the hook for any over-expenditures as well,' and at what point, do we say, hold on, folks, we might have screwed up here, we bit off more than we can chew and we have to look at some alternatives because we simply, as a city, can't afford to do it'?'
Something very different may have been able to be done to house the athletes, but no one knows because no one bothered to look at it, Graham suggested.
'At least from all outward appearances, nobody's ever looked,' he said.
The issue has been left for so long, 'and there's been so much screwing around that now we're at a point that if we don't get started this summer, we're dead in the water, and that worries me too,' he said.
The administrative report pointed out accommodations for athletes are one of the more important factors in determining the success of the high-level athletes for the multi-sport event and thus the success of the Games.
When the host society contacted the territorial government to manage and fund the village, the government wanted permanent facilities constructed for Yukon College, the administrative report stated.
'The concept supported by Yukon would buy 100,000 square feet of space to be used by Yukoners for years to come,' reads the administrative report.
The housing would be used for seniors and college students with families.
The territory approached the city on the deal with numerous meetings held between Premier Dennis Fentie and Mayor Ernie Bourassa.
'It was determined that if Yukon funded the project, the city could assist by providing a grant in lieu of taxes on the village for a finite period of time and further, if Yukon would commit to acquire two lots in the Motorways subdivision for future projects, the city could contribute those funds to the construction of the village,' reads the report.
However, Graham also took issue with the proposed price of the lots that would be sold to the territory for $2 million that the city would then put towards the athletes' village.
The waterfront lots that would be sold to the territory, he said, had been assessed for $3.1 million for the sale, but the deal would see them sold off for $2 million.
Newell explained the $3.1-million value had included the service rate; the $2-million value to YTG is for unserviced property.
'But we were getting that servicing in in any event because it had already been approved six months ago ,' Graham argued. 'So to me, that's just B.S. We're losing the two most valuable lots on the waterfront.'
Also under the proposal:
ï The city would apply under the federal Municipal Rural Infrastructure Fund for funding to complete the extension of Hamilton Boulevard to connect with Robert Service Way and the Alaska Highway in 2008. As part of the commitment, the city would provide up to $3.5 million for its one-third share of the project;
ï The city would apply to the fund as well for money to complete the water and sewer infrastructure upgrade in the Takhini North subdivision in 2008. As part of that commitment, the city would provide up to $2.7 million as its one-third share of the project;
ï The city would write off up to $2.5 million in property taxes for the new housing and student residential facility for up to 10 years. It would also waive the estimated $150,000 in permit fees required for the athletes' village.
'The only good thing I see about this agreement whatsoever, the only thing, is the $2.7 million for Takhini North,' Graham said. 'And we could get that anyway by putting that pitch in under the Municipal Rural Infrastructure Fund.'
He noted the math in calculating the territory's contribution at $20.8 million made no sense to him, pointing to the host society's contribution of $2.7 million and $2 million from the city land.
'I guess what we have here is that when this is all said and done, YTG ends up with $20 million worth of buildings for a whole lot less than $20 million, maybe as low as $10 million,' Graham said.
'And the city gets two lots worth $3.1 million that we're giving away; we get absolutely no value for the athletes' village permits or anything, we do get Hamilton Boulevard extended at a cost to us of $3.5 million which is a good thing, except it isn't in our five-year capital budget, so I wonder what we're going to have to cancel in order to get that money.'
While Graham took issue with the deal, Coun. Dave Stockdale gave his support, noting the city is now stuck between a rock and a hard place.
'We will get an athletes' village and will be able to stage the Games,' he said, adding it's not a time for recrimination nor second-guessing. 'We have a problem and we have to deal with it.'
Coun. Bev Buckway said while she also has concerns, she agrees with Stockdale's comment the city is stuck between a rock and a hard place.
'I hope that this is probably the biggest glitch that comes along,' she said.
Graham noted while the city has to find a way out of the matter, it's important to look at some other options for the athletes' village.
'So I guess, I realize the City of Whitehorse got themselves into this on our own by accepting a bid package that was unrealistic, and we have to find a way out,' he said. 'But I think we have to take a look at some alternatives.'
With such a short time frame to plan and build the village, Graham was asked what he'll do next week when council votes on the proposed memorandum of understanding.
He replied, 'I guess you'll see next week.'
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