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LETTER: Up to $1 billion worth of city assets are in 'poor' shape

For years, the public has known the city is falling behind on the maintenance of its assets to the tune of $31 million a year. But no one at city hall has revealed the totality of the problem until now.
letter-to-the-editor

To the editor,

Thunder Bay city councillors have embarked on a reckless plan to build an indoor turf facility. Just how reckless became apparent recently when the new city manager proffered a warning about the state of the city’s existing infrastructure.

John Collin made the statement during the debate on whether to create a new central library at the Intercity Shopping Centre. Collin’s statement was not widely reported, but it is stunning.

Collin was introducing administration’s review of the proposal. The report said a new library would not be fiscally prudent.

During his oral presentation, city manager Collin put the proposed project in a larger context.

He pointed out that an analysis of existing city facilities shows that between $800 million and $1 billion worth of city assets are in “poor” shape and in need of council’s attention.

For years, the public has known the city is falling behind on the maintenance of its assets to the tune of $31 million a year. But no one at city hall has revealed the totality of the problem until now.

Reckless is an adjective describing an action taken regardless of the consequences. It’s an action taken without a proper regard to caution. In this particular case it can be seen as an action that ignores fiscal prudence.

The city is about to ask the private contractors to build a new indoor turf facility to city standards with an upset cost of $42 million. Because money to pay for it will have to be borrowed, the total cost will jump to $52 million.

Given the state of our roads, bridges and buildings, this is the equivalent of buying a new depth finder for a boat whose bottom is rotting away. The best outcome you can expect is knowing how deep your boat is going to sink.

In this context, if we’re going to build a new indoor turf facility, a prudent council would have looked at options other than taxpayers alone paying the full price.
One option was in plain sight, but ignored: the option to engage the private sector in a partnership to mitigate the city’s costs.

I’ve proposed that council commit to putting up $10 million to install the basic infrastructure for an indoor turf facility and invite developers to build, pay for and operate the facility. This proposal was ignored by councillors who, as the previous city manager confirmed, have never once asked a single developer if they’d like to create a partnership.

Due diligence requires council to look at alternatives. They didn’t. Then they were warned it would be a mistake not to look at cheaper options. They refused. Now, it’s ‘damn the torpedoes, we’re plowing ahead’. Just how deep we’re all going to sink remains to be determined.

 

Shane Judge

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