Owen Sound has formally requested for an extension of the funding deadline for the Regional Recreation Centre at Victoria Park.
It was announced last month that the federal government would extend the deadline by seven months — from March 31st to October 31st.
That would give the city a chance to spend as much money as possible toward the completion of the 38.6 million dollars facility.
But Brad McRoberts — the City’s Special Capital Projects Manager — says Council must formally request the extension before it will be officially approved.
Owen Sound must also provide documentation of the centre’s financial forecast and construction schedule, as well as a council resolution committing to finish the project and to accept responsibility for costs incurred beyond October 31st.
Council agreed unanimously to make the request and to provide the required documentation.
The key is that the city is eligible for two-thirds funding from the federal and provincial governments based on a project worth 32.6 million dollars — and that amount of money must be expended by the deadline.
If so, Owen Sound will receive approximately 22 million dollars worth of funding.
A schedule presented to council on Monday shows that costs of more than 35.1 million dollars will have been incurred by the end of October, meaning the city will meet the condition.
It’s projected that costs will only amount to 15.2 million by the old deadline of March 31st, meaning nearly 20 million will be spent during the seven-month extension.
The project was pushed back a number of months due to poor soil conditions and an aquifer at Victoria Park.
Substantial completion is slated for April 6, 2012 and total completion by May 18, 2012, just shy of two years after construction began.
A debenture will be taken out on Owen Sound’s portion of the cost of the project, and it’s believed that property taxes will not have to rise as a result.
