Town council gives first reading to borrowing bylaw
By Rob Vogt, Local Press Writer
The Town of Claresholm is looking to borrow $2.8 million for the purpose of constructing a town-owned building to create facilities for administration, day care, playschool and other users of community space referred to as multi-use community buildings.
At its July 15 meeting, council passed first reading of a borrowing bylaw that outlined financing for the proposed project, which is estimated to have a total cost of $3.8 million.
A total of $112,500 will come from capital reserves; $887,50 from provincial grants; and the remaining $2.8 million is to be borrowed.
The loan will be paid back over 30 years at a rate of interest not to exceed four per cent.
The decision came after council reviewed a report from administration stating that on May 13, 2019, council passed a motion to cancel the contract with BRZ Partnership Architecture for the renovation project of the multi-use building.
As clarified in the news release on May 14, this contract was cancelled due to updated projected costs on the renovation project being over budget, so the town would not be proceeding with a renovation of the former Claresholm Elementary School building.
On June 10, council repealed the original borrowing bylaw, for the multi-use building renovation project. The motion on June 24, 2019 to award a contract for the demolition of the old elementary school building reiterated that a renovation project was now off the table.
The report stated council is still committed to moving forward with a project to provide new facilities for the day care, playschool, Family and Community Support Services, administration, and community space, though this will now have to come in the form of a new building, with possibly more than one building to meet the needs of the community.
This project is estimated to cost within a comparable range as the original renovation project, estimated at $3.8 million. The intent would be to still proceed with the $2.8 million of debenture funding for the project with the remaining budget to be financed by provincial grants in the amount of $875,500, including Community Facility Enhancement Program grants and Municipal Sustainability Initiative grants as well as $112,500 to be funded from capital reserves.
Following first reading of the bylaw, it will be advertised in the Claresholm Local Press for two consecutive weeks prior to being presented for second and third reading.