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The Corporation of the Municipality of Clarington, 40 Temperance Street, Bowmanville, ON L1C 3A6
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Report To: General Government Committee
From: Mary-Anne Dempster, CAO
Date: June 1, 2026
Memo #: CAO-006-26
File No.:
Re: CODEFS - Postponement of Tender
This memo is to update Council on the status of the Clarington Operations Depot,
Emergency and Fire Services Training Facility (CODEFS), and to recommend a temporary
pause given the financial uncertainty facing municipalities at this time.
Current Status
CODEFS is a Council-endorsed project supporting long-term service, growth, and
infrastructure goals. Foundational work is substantially complete, including site preparation,
environmental due diligence, and technical design. This makes the site shovel-ready for
potential grant funding that may be available in the future.
As we prepare to release the RFP, the Class A cost estimates indicate a potential overall
increase of at least $11 million over budget. This could escalate further given recent
experienced volatility in pricing. Development Charges play a key role in the financial
commitment for this project. Both the Federal and Provincial governments have signaled
development charges may be affected by up to a 50% reduction as a mechanism to spark
investment in housing by bringing down the cost to build. The Municipality continues to
manage a disciplined and structured capital program aligned with Council priorities and
long-term planning frameworks. However, evolving funding conditions—particularly related
to development charges and broader geopolitical and economic pressures—require projects
to be reassessed through an updated lens.
Additionally, growth has significantly slowed. Amenities, such as the firehall, in 2025 were
projected to be required within the 5-7 year timeframe, have now been pushed into the 7-10
year period. However, the Operations depot is still required now, which may lend to a
phasing of the total build on the site.
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The Corporation of the Municipality of Clarington, 40 Temperance Street, Bowmanville, ON L1C 3A6
1-800-563-1195 | Local: 905-623-3379 | info@clarington.net | www.clarington.net
The project is approaching key procurement and contracting milestones. Proceeding would
require the Municipality to enter into major construction contracts and commit to a multi-year
capital expenditure. Advancing at this stage would significantly reduce flexibility to respond
to changing funding conditions, new program requirements, or emerging corporate priorities.
Given this uncertainty, staff recommend pausing this project to review all projects funded by
development charges over the next five years. These adjustments would have a material
and significant impact on municipal finances and on how funds and debt capacity is
managed to maintain long-term financial flexibility.
Next Steps
Pausing advancement at this stage protects the work completed to date while avoiding
exposure to construction-phase financial risk. The project remains well-positioned as a
construction-ready initiative.
Staff will report back to the next term of Council with updated timelines, recommendations,
and financing options once there is greater clarity on evolving conditions.
Recommendation:
That Council direct staff to pause the Clarington Operations Depot, Emergency and Fire
Services Training Facility (CODEFS);
That Council direct staff to prepare a prioritization list of the growth-related (DC funded)
capital projects for the next term of Council based on predicted financial outcomes to
include, financial sustainability and rationale for timing; and
That all interested parties be made aware of this direction.
Respectfully submitted,
Mary-Anne Dempster
Chief Administrative Officer