Thursday, 23 July 2020

Should the Turf Facility Be Turfed?


There is an old joke about universities that goes as follows: When it comes to spending money, Department Chairs like new hires, Deans like new programs and Presidents like new buildings.  We can extend this to municipal governments.  Municipal Administrators like new staff hires, City Councilors like new programs for their neighborhoods and Mayors like new buildings.  Indeed, with the proposed multi-million dollar Indoor Turf Facility our current Mayor Mauro is continuing the practice of seeking a legacy build that marked previous Mayor Keith Hobbs’ terms as he sought and ultimately failed to bring about a new Events Center. 

There is nothing wrong with building a new events center or a new indoor turf facility.  They are both projects that will find users and will bring about benefits to the community.  The indoor turf facility will no doubt find many users in the Thunder Bay’s growing soccer community.  Indeed, there are private developers quite eager to provide these facilities – which incidentally would add to the tax base – and yet their plans seem to face a lot of obstacles from the City.  For whatever reason, the City does not seem to like competition from the private sector even if it enables them to save money.  As much as city councilors and administrators hate to hear it, it is ultimately about economics and financial sustainability.   

The Thunder Bay Chamber of Commerce is correct in wanting more detail on the finances as well as a financial plan given that the facility was going to cost $30 million, now costs $33 million and given the proposed new $15 million debenture (should federal and provincial support not materialize) will add a further $8 million in interest costs bringing the total to $42 million.  Given the history of construction projects in Thunder Bay, the final bill will probably not end there and I would not be surprised to see the costs of the facility exceed $60 million when all is said and done.  And then of course, there are the annual operating costs.  Given the City has been closing pools and considering other closures as part of its expenditure review, it is odd to see them happily adding new potential operating costs.

This whole business is also about process and one begins to think that despite the talk about deliberation and consultation and consideration of this project, this is probably a done deal.  The August 24th meeting will be one of feigned concern about city finances followed by approval of the project.  Only one councilor appears to have raised any reservations at the last council meeting.  Stantec Architecture has been retained to design the facility and they have provided a glowing public presentation. 

In lieu of public meetings given COVID-19, public input is being accepted via a comment form requiring registration until August 3rd.   The form simply asks one question – ‘Please provide your comments”.  In that sense, it is free form enough for people to provide whatever comments they want.  Yet, it is still not sufficient for a full public debate and the survey does not provide any type of costing options.  If you are opposed, your comments will likely receive a smaller weighting in Council’s deliberations as they will be very free form and judged “inconsistent” or “not focused” while supportive comments will be “passionate” and “effective.”

Indeed, the impact of COVID-19 on public meetings and public debate is I think secretly welcomed by many politicians – including our municipal councilors.  After all, no more pesky face to face meetings with unhappy constituents.  You can receive input electronically and the beauty of that is you can choose to respond to what you want and ignore the rest.  After all, expert consulting advice is being provided to  Thunder Bay City Council on this matter and experts know what they are talking about.   Except, the only expert advice that City Council usually wishes to hear is from paid international experts who bid for a project with parameters that essentially result in them presenting how to do what City Council wants to do as opposed to whether the project should be done in the first place.     

Local experts with differing points of view and local knowledge are avoided and if too vocal are essentially derided – sometimes during council meetings themselves.  As Councillor Aldo Ruberto remarked about yours truly during a 2015 council meeting on the proposed events center – "You want to listen to economists? They record history. They don't make history." For the record, I supported a downtown events center as long as Federal and provincial funding could be secured for the project but such support was not forthcoming.  When the funding or circumstances change and new information becomes avilable, I change my mind.  Such nuances are lost on “passionate” politicians.

Thunder Bay City Councilors do not like to talk about history much – unless it is a celebration of their own glories – because it reminds them of mistakes that have been made.  Indeed, Thunder Bay City Council continues to make history as it approves decisions that add more and more spending with the buck being passed on to residential ratepayers who are now paying 70 percent of the tax levy and face rising user fees.  There are certainly a lot of potential bills coming due with past decisions made on the city’s water supply.  The City has been remarkably silent on pinhole leaks in the wake of the sodium hydroxide experiment to reduce lead even in the wake of direct queries.

 

So, should we turf the turf facility?  The city has earmarked funds out of reserves for this project.  For it to go ahead in a responsible fiscal manner, the project requires that upper tiers of government provide at least half of the upfront capital costs with the remainder coming out reserves – not a debenture. Yet, the talk of a debenture means Thunder Bay City Council and Mayor already suspect there is not going to be federal or provincial grant support so they are making alternate plans.  After all, why would the federal government or province commit to yet another northern Ontario construction project that is not essential infrastructure and seems to have such flexible and changing construction costs?  Moreover, given Thunder Bay is lamenting their $13 million COVID-19 budgetary shortfall should not reserves also be used for this rather than have a steep tax increase in 2021?  The decision is pretty obvious. In the absence of upper tier grant support, you turf the turf facility and go with the private sector individuals who were ready to build and hope they are still interested.