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Home My WebLink AboutCS-09-99Subject: 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 -09 -99 be received; and 2. THAT Council approve forthwith an additional $50,000 as an interest free loan (totalling $175,000) to be drawn on as required by the Orono Amateur Athletic Association; and 3. THAT the repayment plan of the loan be established at 7 annual installments of twenty -five ($25,000) each with the first payment due December 31, 2000 and the subsequent payments due on December 31, 2001; December 31, 2002; December 311 2003; December 31, 2004; December 31, 2005; and the final payment due December 31, 2006; and 4. THAT the required additional funds be drawn from the Impac/Escrow Reserve Fund Account #1110- 196 -X; and 5. THAT the Orono Amateur Athletic Association and the Orono Arena Board be advised of action taken. 1.0 BACKGROUND 1.1 At the February 15, 1999 General Purpose & Administration Committee meeting Report CS -04 -99 (attachment #1) was approved authorizing staff to provide an interest free loan to the Orono Amateur Athletic Association for the purpose of expanding the facilities at the Orono Arena and Community Centre. 1.2 Since that time, staff in conjunction with representatives of the Orono Amateur Athletic Association have advanced the project to the tender phase. Tenders were called and received by the municipality with the low bid of two hundred and fifty -eight thousand, four hundred dollars ($258,400). Please refer to report TR -34 -99 for details of the tender process. RPAPER REYEF U 01 ../2 EAPI RECYCLE THIS IS PRIMED ON RECYCLED PAPER REPORT CS -09 -99 - 2 - JUNE 21, 1999 1.3 Subsequently, attempts were made to "cut- back" on the project to meet the original budget estimate of two hundred thousand dollars ($200,000), however, the tender estimate could only be reduced by twelve thousand seven hundred dollars ($12,700) without jeopardizing the integrity of the project. 1.4 The revised project cost is now established as follows: • Construction $ 245,700 • Professional Fees $ 251000 • Revised Project Cost $ 270,700 • Less approved budget $. 225,000 • TOTAL REQUIRED FUNDS $ 45,700 1.5 A letter received from Mr. Neill Allin President of the Orono Amateur Athletic Association (attachment #2), requesting Council approval for the additional funds and a commitment to the re- payment plan is provided for the information of Council. 1.6 Staff is recommending a forthwith approval as the project schedule is extremely tight if the project is to be completed prior to the commencement of the Durham Central Agricultural Society Annual Fair in September 1999. Respectfully submitted, J!seph P. Caruana, Director o munity Services Department )PC: dm Attachments 1 UU2 Reviewed by, Franklin Wu, M.C.I.P., R.P.P. Chief Administrative Officer THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX GENERAL PURPOSE AND ADMINISTRATION COMMITTEE February 15, 1999 CS -04 -99 ORONO ARENA EXPANSION PROJECT 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 five- 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 five 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 -five thousand dollars ($225,000.) for the project. 1UU3 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. 10 04 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 -rive 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. 1UJ 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, Joseph P. Caruana, Director Community Services Department JPC:pg Reviewed by, Franklin Wu, M.C.I.P., R.P.P. Chief Administrative Officer 1 UU6 Orono Amateur Athletic Association "Incorporated" P.O. Box 165, Orono, Ontario LOB IMO June 15, 1999 Municipality of Clarington 40 Temperance St. Bowmanville, Ontario L1C 3A6 Attention: Fred Horvath Dear Mr. Horvath, Re: Orono Arena Expansion i 1 � • MUNICIPALITY OF CLARINGTON MARKETING, TOURISM & COMMUNICATIONS F �• r� Since there was an overrun of the estimated construction budget for the proposed expansion of the Orono Arena, the Orono Amateur Athletic Association is requesting an additional fifty thousand dollars ($50,000.00) to be added to the interest free loan and with the repayment of the loan to be made in seven annual installments of twenty five thousand dollars ($25,000.00). Thank you for your consideration. Sincerely, //4-Avk- Neil Allin President 1UJ/