HomeMy WebLinkAboutCS-04-99g: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE
Meeting: File �
Date: February 15, 1999 Res. #
By -Law #
Report #: --'CS= 04=99— File #:
Subject: ORONO ARENA EXPANSION PROJECT
Recommendations:
It is respectfully recommended that the General Purpose and Administration Committee
recommend to Council the following:
1. THAT Report CS -04 -99 be received; and
2. THAT Council endorse the Orono Arena Expansion Project, subject to receipt of
approval from the Durham Central Agricultural Society; and
3. THAT Council approve an interest free loan, to an upset limit of one hundred and
twenty rive- thousand dollars ($125,000.), to be drawn on as required by the Orono
Amateur Athletic Association; and
4. THAT a letter of intent for repayment of the loan in rive annual instalments of
twenty -five thousand dollars ($25,000.) each with the first payment due December
31, 2000 and the subsequent payments due on December 31, 2001; December 31,
2002; December 31, 2003; and the final payment due December 31, 2004 be
received; and
5. THAT the required funds be drawn from the Impact /Escrow Reserve Fund
Account #1110 - 196 -X; and
6. THAT the tendering process be administered by the Municipality of Clarington in
conjunction with the Orono Arena Board and the Orono Amateur Athletic
Association; and
7. THAT the Durham Central Agricultural Society, the Orono Amateur Athletic
Association and the Orono Arena Board be advised of action taken.
1.0 BACKGROUND
1.1 At the November 23, 1998 meeting of Council, a delegation by Mr. Ray Bester, President
of the Orono Amateur Athletic Association was received and referred to staff.
1.2 In his delegation Mr. Bester explained the need for an expansion to the Orono Arena
involving the addition of 2 dressing rooms, a locker room, a janitorial room and a meeting
room, with an estimated cost of two hundred and twenty -rive thousand dollars ($225,000.)
for the project.
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R P YCL D RE 10 1
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REPORT CS -04 -99 -2 - FEBRUARY 15, 1999
1.3 The delegation, specifically requested assistance from the Municipality with the following:
• Assistance with Building Permits
• Verifying Building Codes
• Advice for Tendering Process
• Interim Financing
1.4 Subsequently, staff met with Mr. Bester on January 13, 1999 to discuss the project, and
devise a plan of action to accommodate the request of the Orono Amateur Athletic
Association.
2.0 DURHAM CENTRAL AGRICULTURAL SOCIETY
2.1 Notwithstanding the existing Orono Arena is owned by the Municipality and operated by
the Orono Arena Board with the authority of the Municipality of Clarington, the land on
which the building is located is owned by the Durham Central Agricultural Society.
2.2 Through our discussions with Mr. Bester it was noted that the Durham Central
Agricultural Society is aware of and has endorsed this project, however staff is requesting
that a letter stating the Society's approval should be received prior to commencement of
the project.
3.0 BUILDING PERMITS /CODES
3.1 Recognizing that the existing structure is owned by the Municipality, a building permit is
required however the building permit fee will be waived, as is the case with all municipal
construction.
3.2 To assist the Association with issues related to the Building Code, staff has assigned a
representative of the Building Department to work directly with this project on a
consultative basis.
4.0 TENDERING PROCESS
4.1 During the meeting with Mr. Bester, it was requested that the Municipality provide
assistance with the tendering process. Through that discussion, it was decided that it
would be in the interest of both parties to have the project tendered through the
Municipality, in conjunction with the Orono Amateur Athletic Association and the Orono
Arena Board.
REPORT CS -04 -99 -3 - FEBRUARY 15, 1999
4.2 This will indemnify the Association members with respect to concerns raised related to
builders risk, as the Municipality's insurance carriers will provide this coverage under our
existing insurance policy and further it should be noted that the Municipality's liability
coverage extends to the Orono Arena Board not to the Athletic Association. As such it is
recommended that the Arena Board have a presence in the tendering process.
5.0 FINANCING
5.1 The delegation identified a preliminary goal of one hundred thousand dollars ($100,000.)
in commitments prior to proceeding with the project. Currently the Association has
commitments of fifty -one thousand dollars ($51,000.) and more recently has received
Council approval for a grant of forty -five thousand dollars ($45,000.), through the
Advance Funding Program - Ontario Lottery Corporation totalling ninety -six thousand
dollars ($96,000.) in commitments.
5.2 During discussions with Mr. Bester a specific request for an interest free loan from the
Municipality in the amount of one hundred & twenty -five thousand dollars ($125,000.)
was received and referred to the Treasurer.
5.3 Subsequently, a recommendation to provide an interest free loan to an upset limit of one
hundred and twenty -five thousand dollars was forwarded with terms established over 5
years, to be repaid with 5 equal installments of twenty -five thousand dollars ($25,000.)
each, with the first payment due on December 31, 2000 and that the funds are to be drawn
from the Impact /Escrow Reserve Fund Account #1110 - 196 -X.
5.4 Should Council approve the interim financing scenario, commitments for this project total
two hundred and twenty -one thousand dollars ($221,000.). Mr. Bester expressed no
difficulty in fund - raising the additional four thousand dollars ($4,000.) to meet the total
project estimate.
6.0 CONCLUSION
6.1 With the approval of Council, staff will initiate a project team representing the required
Municipal disciplines to assist the Orono Amateur Athletic Association with this project
through its completion, including project administration.
REPORT CS -04 -99 -4 - FEBRUARY 15, 1999
6.2 Staff are confident that with the proven track record of the Orono Amateur Athletic
Association over the past 20 years that the financing plan is attainable.
Respectfully submitted,
Jos oh P. Caruana, Director
Co unity Services Department
JPC:pg
Reviewed by,
. r -
Franklin Wu, M.C.I.P., R.P.P.
Chief Administrative Officer