Questions and Answers Concerning the Proposed West Parry Sound Pool and Wellness Centre Project and Whitestone's Participation
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Questions and Answers Concerning the Proposed West Parry Sound Pool and Wellness Centre Project and Whitestone’s Participation The following are answers to questions raised by Whitestone ratepayers regarding the proposed West Parry Sound Pool and Wellness Centre project and possible participation in it on the part of the Municipality of Whitestone, presented in a Q&A format. 1) Q: Various groups in West Parry Sound District have been working for the past 15 years towards the creation of a public pool facility in the area. Why is this considered an important amenity? A: Individuals and families considering relocating to an area expect certain amenities. The availability of indoor recreation facilities can be an important factor in their decisions. Currently the only such facilities in West Parry Sound are the two arenas. A public pool and wellness centre will help attract and retain the workforce to support the healthcare system, businesses, and services that we all depend on. People who are already living in the West Parry Sound area will welcome additional recreational choices. The proposed facility has been identified as a potential economic driver for the region. There is a strong commitment to the project within the Town of Parry Sound and the municipalities adjacent to and surrounding it, and within the local West Parry Sound health care community. 2) Q: How did the proposal currently before us come to be? A: The councils of the 7 West Parry Sound municipalities agreed to form an ad-hoc Wellness Centre and Pool Committee (WCPC) consisting of one representative from each municipal council, with an independent non-voting Chair. Whitestone’s representative on the Committee was Mayor Armstrong until his passing in August of 2019, whereupon he was succeeded by Mayor Comrie. The mandate of the WCPC was to develop the concept for a pool and wellness centre to serve the residents of West Parry Sound. Each municipality contributed funds (in Whitestone’s case $10,300.) to support the retention of consultants to assist in the planning and preliminary design work and the development of a high-level pro forma for operating costs. In the summer of 2019, an opportunity presented itself to apply for federal funding under the Investing in Community Infrastructure Program (ICIP), with a December deadline. A proposal for 73% funding of a capital project with a total projected cost of $32 million was submitted through the Ontario Ministry of Infrastructure. This proposal remains under consideration for funding by the Government of Canada. Pool and Wellness Centre FAQ Page 1 of 9 February 2021
3) Q: In the ICIP application, the proposed facility was referred to as a “Recreation and Culture Centre”. Now we seem to have reverted to “Pool and Wellness Centre”. What’s with the name change? A: At the time the ICIP funding application was being prepared, it was suggested that the inclusion of a cultural component could enhance support for the application by the provincial and federal governments. However, there was limited intention to program space for cultural purposes, and the most recent functional program excludes it. (See Question 4 below.) The most important element of the facility remains an indoor pool. 4) Q: What facilities are included in the functional program for the proposed centre? A: The facility as conceived will consist of the following main physical components: • Aquatics (4-lane lap pool plus a therapeutic pool) • Gymnasium • Fitness Area • Walking Track • Multi-purpose space 5) Q: The Citizen’s Advisory Committee (CAC) recommended a 6-lane lap pool, plus some other additional features. Why were these recommendations excluded from the final configuration approved by the WCPC for recommendation to Councils? A: One-word answer: cost. It is generally agreed that a 6-lane pool is better suited to competitive swimming meets than a 4-lane pool, and would facilitate West Parry Sound hosting such events that would attract additional visitors and economic activity to the area. However, the costs associated with both construction and operation of the pool would increase significantly with an increase in the size of the pool. Several of the CAC’s recommended enhancements have been included in the final recommended configuration, but others were excluded to avoid increasing the construction cost by a further $8 million. 6) Q: What are the anticipated benefits of an indoor recreation facility to a community like West Parry Sound? A: Physical activity is considered to be critical to the health and well being of a community. Recreation amenities have been shown to reduce health care, social service, and policing / justice costs. Their benefits are not just physical, but mental and emotional. Providing older adults with a safe environment in which to exercise helps them maintain their strength and mobility, speed their recovery from illness and surgery, and avoid feelings of isolation. Teenagers participating in after school recreational programs have higher academic achievement and are less likely to smoke, abuse drugs, engage in illegal activities, or be suicidal. Pool and Wellness Centre FAQ Page 2 of 9 February 2021
7) Q: It has been suggested that the pool and wellness centre should be part of a Parry Sound community hub comprising a school, affordable / seniors housing, and other such amenities. Was this considered? A: Yes. The WCPC discussed the desirability of this approach of combining multiple compatible uses in a single site. However, the Near North District School Board has chosen the site of the existing Parry Sound High School for its new “super school”. Fortunately, the site chosen for the Pool and Wellness Centre is within walking distance of the high school, whose students are expected to take advantage of its aquatic and other programs. Other compatible uses for the remainder of the site may be considered at a future date, but these will not be part of the current project or funding. 8) Q: Cottage Country is a veritable outdoor recreation paradise with an abundance of nature trails, hiking, biking, skiing, snowshoeing, and swimming. Why do we need an indoor pool and wellness centre to support a healthy recreation lifestyle? A: While Parry Sound District does offer many outdoor recreational activities year-round, there is still a need for an indoor facility that can accommodate indoor sports and fitness activities. In particular, an indoor pool allows swimming to take place during the seven months of the year when outdoor swimming is impossible. The outdoor swimming season is not adequate for individuals to learn to swim competently and to acquire water safety and lifesaving skills – skills that are essential for anyone living and working around water. These skills, and their associated instructional skills, are almost always acquired indoors. Swimming is considered to be one of the best exercises to maintain fitness, especially for individuals with limited mobility. 9) Q: If the residents in and around the Town of Parry Sound want a pool and wellness center complex, why don’t they finance and build it themselves? A: As the table below shows, neither the Town of Parry Sound, nor the 7 West Parry Sound municipalities combined, has the population or tax base to fund construction of a facility of this magnitude without assistance from higher levels of government. (2019 data) MUNICIPALITY HOUSEHOLDS ASSESSMENT BASE TAX RATE Seguin 5023 $ 3,465,463,718. 0.003483 Parry Sound 2775 $ 705,586,475. 0.013512 McDougall 1998 $ 735,361,100. 0.005682 Archipelago 3379 $ 2,042,804,609. 0.003753 Carling 1812 $ 988,581,854. 0.004917 McKellar 1634 $ 650,276,300. 0.004889 Whitestone 1985 $ 589,612,218. 0.004651 Pool and Wellness Centre FAQ Page 3 of 9 February 2021
10) Q: Based on the suggested funding formula with Whitestone’s share at 6.1%, how much would a ratepayer in the Municipality of Whitestone be contributing towards the cost of this project? A: Assuming a worst-case scenario in which the entire capital cost differential and projected operating losses are funded through taxation (i.e., no contributions from fundraising, other revenues, or offsets from other capital programs), and that capital costs are amortized over 15 years at the current Provincial interest rate of 2.1%, a Whitestone ratepayer would contribute, per $100,000 of assessment: Towards the capital cost $ 10.42 Towards the operating deficit $ 2.94 ___________________________________________________ Total $ 13.36 11) Q: Why are the two First Nations not participating in the funding for this project? A: The Shawanaga and Wasauksing First Nations supported the application for the ICIP funding, and by so doing increased the likelihood of its acceptance. However, first nations are funded (by the federal government) differently from municipalities, and do not receive property tax revenues. As a result, they indicated at the outset of the WCPC’s work that they would not be able to contribute to the centre’s capital or operating costs. They are, however, expected to make good use of the facility, and may be in a position to subsidize their members use of it as an incentive. 12) Q: Capital projects often exceed their established budgets? How reliable are the capital cost estimates for the Pool and Wellness Centre? A: The capital cost estimates for the project (totalling $32 million) were prepared by design professionals following due diligence. They include allowances for contingencies, and are considered conservative. Moreover, the WCPC has made it clear throughout the due diligence process that the $32 million is to be treated as an upset limit, and that unanticipated costs overruns would result in re-scoping of the project to stay within that limit. Finally, the WCPC has agreed to launch a fundraising campaign once federal funding has been announced with the goal of reducing or even eliminating the ~$8 million shortfall between the total capital cost and the federal subsidy that would otherwise need to be funded by West Parry Sound ratepayers. 13) Q: The operating cost estimates for the new facility presented to the WCPC project an annual operating cost deficit of ~$300,000 that would need to be funded by West Parry Sound ratepayers. A few individuals not directly associated with the project have offered the opinion that this estimate is materially understated. How will this concern be addressed? Pool and Wellness Centre FAQ Page 4 of 9 February 2021
A: The projected operating deficit prepared by the project consultants is based on certain assumptions regarding the operating model for the facility (e.g., who will use the facility, how much they will pay in membership or a-la-carte user fees, and for what services?) Such assumptions are difficult to validate until the Centre is up and running and its specific programs and services have been established, especially given that no such facility has existed in the community to date. At this juncture, the best approximations are based on experience with similar facilities in other communities. It has been suggested that further due diligence is required to firm up the operating model and increase confidence in the usage and operating cost estimates. The WCPC will be considering this suggestion, but a formal study may not be undertaken until confirmation of federal funding has been received. 14) B: Why would West Parry Sound municipalities invest in a project that has been projected to lose money for years to come? A: Most municipal facilities are not built or operated on a full cost recovery basis. Ratepayer dollars are invested in infrastructure and programs that are perceived to be of benefit to the community as a whole. There is, however, a clear expectation that operating losses will be kept to a minimum to avoid the proposed facility becoming a financial burden to the West Parry Sound municipalities. 15) Q: What will happen if the requested federal funding is not received, or the amount received is lower than requested? A: The project will not proceed as planned without the requested ICIP funding. Depending on the circumstances and the wishes of the West Parry Sound municipalities, it may “go back to the drawing board” for revision / rescoping, but currently there is no “Plan B”. 16) Q: The WCPC has recommended that the YMCA - who have been closing similar facilities in other communities because they are not economically viable - be contracted to operate the proposed Pool and Wellness Centre. Is this advisable? A: The recommendation that the Y operate the facility was based on the facts that (i) the Y has extensive experience operating similar facilities (which the 7 municipalities lack), and (ii) the Y has programs to underwrite the cost of using their facilities for clients who can’t afford to pay the usual fees. Recent closures of YMCA recreation facilities (including the existing one on Parry Sound Drive) have involved older facilities or facilities that were not originally designed as recreation facilities, and have been precipitated by the COVID-19 pandemic. The proposed municipal services board for the Pool and Wellness Centre would have authority over any such contract and would be expected to exercise strong oversight of the facility’s operation. 17) Q: How much will I have to pay to use the facilities of proposed Pool and Wellness Centre? Pool and Wellness Centre FAQ Page 5 of 9 February 2021
A: This is a difficult question to answer at this stage of the project, before the operating model for the facility has been refined and approved by the municipal service board. YMCA-operated facilities tend to use a membership model in which individuals and families pay an annual fee that entitles them to unlimited use of most programs offered. Many facilities also offer a-la-carte fees for access to individual programs such as learn- to-swim or martial arts classes. Membership and user fees vary from location to location and are based on user demand and ability to pay. 18) Q: The YMCA has offered to lease their location on Parry Sound Drive to the municipal services board for $1.00 as the site of the proposed new facility. Should we be building on property we do not own? A: As recommended by the WCPC, negotiations are currently underway to secure the proposed site. 19) Q: A majority of respondents to Council’s November communication regarding the Pool and Wellness Centre have indicated they do not anticipate ever using the facility. Will anyone from Whitestone use it? A: Because of Whitestone residents’ distance from the proposed facility, they are not expected to use it to the same extent as those living closer to the Town of Parry Sound. However, many Whitestone residents work or go to school in Parry Sound, and will have convenient access to it. Every effort will be made to encourage use of the facility by Whitestone residents. Programs such as learn to swim for children and aquafit for seniors will be of particular interest, as well as use of the therapeutic pool by those with mobility issues. Young people in our community will have the opportunity to earn advanced qualifications enabling them to work as swimming instructors and lifeguards, and some may pursue competitive swimming. Similar opportunities may exist for programs in gymnastics and martial arts. 20) Q: We don’t see ourselves ever using the proposed Pool and Wellness Centre. Why should our tax dollars go towards building and/or operating it? A: With the exception of our landfill sites, none of Whitestone’s municipal facilities is used by a majority of ratepayers. (Consider any of the capital projects Whitestone has invested in over the years and you will see this is true. Even in the Town of Parry Sound itself, a majority of residents will not use a Pool and Wellness Centre.) Nevertheless, Councils and the public support investing in infrastructure that will benefit a significant number of ratepayers and will contribute to the growth, prosperity, and quality of life of the community as a whole. 21) Q: Given how far Whitestone residents will travel to the proposed facility, our recommended 6.1% share of the costs does not seem fair. How was this share determined, and can it be changed? Pool and Wellness Centre FAQ Page 6 of 9 February 2021
A: Whitestone’s recommended 6.1% share of the costs was arrived at taking into consideration the number of households, population, assessment base, and average travel distance to the facility in each municipality, and is typical of the percentage Council has agreed to in the past for other shared regional services. Rather than focusing on the reasonableness of a percentage share, it may be more appropriate to consider the affordability of specific dollar amounts vis a vis Whitestone’s capital and operating budgets. If this approach is taken, once these amounts are determined, they would not increase without the agreement of the Municipality. At the same time, the Municipality would not be able to reduce its commitment within the term of the funding agreement, in the interest of providing a stable funding base for operation of the facility. 22) Q: Is the Municipality of Whitestone already obligated to contribute towards the costs of the proposed Pool and Wellness Centre project? A: No. Whitestone Council will determine if and to what extent the Municipality will contribute to the capital and/or operating costs of the facility, contingent on receipt of the requested ICIP funding. 23) Q: If Whitestone opts out of the project, will its ratepayers pay higher fees to use the Pool and Wellness Centre? A: Some recreational facilities owned and operated by municipalities charge higher membership and usage fees for non-residents, but this is typically not the case for YMCA-operated facilities. All decisions regarding fees for the proposed facility will be made by its management board, made up of representatives of the contributing municipalities. 24) Q: If Whitestone Council agrees to contribute financially to the project, can we protect the Municipality against liability for any cost overruns? A: Yes. Council can limit its exposure to capital cost overruns or operating cost deficits by establishing upset limits on its contributions. Such limits could be expressed in terms of absolute dollars, or as a percentage of assessment base (tax rate). 25) Q: If Whitestone supports the Pool and Wellness centre project, will we still be able to undertake other important capital projects such as expansion of the Whitestone and Area Nursing Station, maintenance of our roads and bridges, and expansion of the Municipal Office? A: Yes. Council will be considering its 2021 capital budget beginning on March 1st, and the above items will be included. Any contribution to the Pool and Wellness Centre will not likely take place until the 2022 or 2023 fiscal year. Pool and Wellness Centre FAQ Page 7 of 9 February 2021
26) Q: What might be the consequences of a decision by Whitestone Council not to participate further in the Pool and Wellness Centre project? A: Assuming the requested ICIP funding is received, if Whitestone Council decides not to participate further in the project, it may still proceed without our participation. As the smallest municipality in West Parry Sound in terms of population and assessment base, Whitestone is not expected to play a major role in it. At the same time, it must be recognized that Whitestone has strong socio-economic ties to the Town of Parry Sound and the surrounding region, and shares many essential services with them. Whitestone residents do not live in isolation, but depend on the rest of our region for a majority of our goods and services, and in many cases our employment. Non-participation by Whitestone would risk undermining our current favourable status with the other West Parry Sound municipalities, and could even be perceived by some as a decision by Whitestone to withdraw from the informal West Parry Sound community. In addition, the Government of Ontario has gone to bat for West Parry Sound by recommending the WCPC’s application for federal ICIP funding. Major factors in their support of our application were that the applicants were a consortium of 7 cooperating municipalities, and that the project was dependent on external funding. Refusal by Whitestone to participate in this project could place at risk requested provincial and/or federal funding for other important Whitestone projects such as improved broadband internet service. 27) Q: How does this project align with Whitestone’s Strategic Plan, and how will we measure how well it advances the objective? A: The following two strategic objectives are relevant to the proposed Pool and Wellness Centre: 6.5 Consider shared economic development resources The Municipality will consider partnering with neighbouring municipalities to share economic development resources. 7.9 Promote health and safety Health and safety are important factors in the quality of life of Whitestone residents. Council will continue to support health and safety related services and programs within the Municipality such as the Volunteer Fire and Rescue Service, the Nursing Station, and fitness programs. Measures of success would include the extent to which the proposed facility helps to attract individuals and businesses to the West Parry Sound area, and the extent to which Whitestone ratepayers are able to avail themselves of the facility and its programs. 28) Q. How and when will Council’s decision on Whitestone’s participation in the Pool and Wellness Centre Project be made? A: At its last regular meeting, Whitestone Council agreed to “hold a special Council meeting in the near future” to consider this matter and make a decision. Opportunity for public Pool and Wellness Centre FAQ Page 8 of 9 February 2021
input will be provided in the first portion of the meeting. A date for this meeting has not been set, but will be communicated well in advance via the Municipal website and Facebook page. Pool and Wellness Centre FAQ Page 9 of 9 February 2021
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