The estimate for a new recreation centre in Dawson City is $38 million more than its budget currently allows.
That’s the number that was included in a report presented to Dawson City council on Dec. 5.
“Yukon government has identified a budget of $65 million to complete this project,” reads the analysis in the report. “Based on current estimates of approximately $100 million, we are facing an approximate shortfall of $35 million.”
The design for the facility includes a skating rink, curling rink and lounge, gymnasium, fitness centre, running track, bouldering wall, sauna, indoor playground, canteen, multiple-purpose rooms and offices.
However, Community Services Minister Richard Mostyn told the News that’s not what the Yukon government agreed to when it put forward a $65-million budget secured through the Investing in Canada Infrastructure Program.
Mostyn said the $65 million was for a facility with an ice rink, a curling rink and a concession stand.
That would replace the facilities at the Art and Margaret Fry Recreation Centre.
Built in 2000, that centre operates as a hockey arena and curling facility. Its plans initially included additional programming space. However, the second floor of the building remains unfinished.
Paul Robitaille is the parks and recreation manager with the City of Dawson. He prepared the report that was presented to council on Dec. 5.
That report listed an alternative to a new build as repairing the Art and Margaret Fry Recreation Centre.
Robitaille told the News that option has been under discussion for years.
“The challenge is, it’s hard to get a clear answer in terms of the work that has to be done to salvage this building,” Robitaille said. “At one point, the dollar figure to fix the building was similar to building a whole new facility.”
His report said the operating and maintenance costs of the current rec centre are rising.
“Structural damage is incurred due to foundation and permafrost related issues,” reads the report. “The expected lifespan of the existing facilities is uncertain, and the costs to ensure safety of users is increasing year over year.”
Mostyn said that’s why the government agreed to a design that would replicate the existing facilities.
He said that in the process of the municipality planning that design, other elements were added. Mostyn said each on its own might not have seemed like much, but altogether, they led to the budget ballooning.
Ultimately, he said a cost estimate was not developed for a project that was scaled to include only a hockey rink, curling rink and concession. He said the government is committed to a build, but will have to work with the municipality to refine its plans.
Robitaille said a possible next step could be to secure additional funding to cover the $38 million shortfall.
He said he doesn’t want to speculate what those sources might be, but that they could include looking at Outside funding.
Mostyn told the News that, at this point, there’s no time to start looking at additional funding.
He said he wants to go to tender with the project in 2024, with construction to follow in 2025.
“This is not an insignificant build for that community,” Mostyn said of the $65 million.
“That’s a great facility for the community of Dawson.”
He said the amount the government has committed to has contingencies built in to account for inflation, something Robitaille cited as a reason for the increased estimate presented to council.
Robitaille said construction costs are increasing across Canada, especially in the North.
“We need to find a way to overcome that, and I don’t have the magic wand to solve it,” Robitaille said. “The community wants to see something built that meets the needs, but at a certain point, you know, there’ll be some hard decisions to make in terms of how we proceed with the project.”
Another cost to take into consideration, said Mostyn, is the operational cost of the finished facility.
Current operating costs of the Art and Margaret Fry Recreation Centre facility are $1.2 million annually. The estimated operating cost for the design that was recently presented to council is $1.5 million annually.
Mostyn said he wants to ensure a facility is built that the municipality can sustain.
“Ultimately, it’s going to be council’s direction that’s going to decide on these matters,” Robitaille said. “But it’s a really important facility for our community. There’s no question. The current rec centre is the lifeblood of the community in the wintertime. It never came to fruition the way that was envisioned, you know, to be a multi-sport facility […] we don’t want to run into the same challenges and failures that we did with the build of the Art and Margaret Fry Rec Centre.”
Dawson City council will discuss options at a regular council meeting on Dec. 19.
Contact Amy Kenny at amy.kenny@yukon-news.com