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HomeMy WebLinkAboutTR-14-91 TOWN OF NEWCASTLE REPORT File #F1f.,' +,)��'�ca Res. # By-Law # MEETING: GENERAL PURPOSE & ADMINISTRATION COMMITTEE GATE: February 4, 1991 REPORT #: TR-14-91 FILE #: SUBJECT: OLD ARENA DEMOLITION EXCESS PROCEEDS RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. That report TR-14-91 be received; and 2. The excess funds, in the amount of $14,558, from the developer's contribution toward the demolition of the Memorial Arena, be transferred to the Bowmanville Recreation Complex Reserve Fund Account (#1110-172-X) BACKGROUND & COMMENTS: 1. At the General Purpose and Administration meeting of January 21st, Committee requested that the information regarding the excess proceeds relating to the demolition of the old arena be presented in a report to Committee. 1.1 The Contribution from the developers toward the demolition of the old arena was $60,000, of which $45,442 was expended to demolish the building and sod the property. The excess to be allocated then is $14,558. 2. The original financing scenario of the Bowmanville Recreation Complex as presented throughout the "Skate 88" campaign included a contribution toward the project in the amount of $175,000 upon the sale of the old arena. . . .2 TR-14-91 Page 2 2.1 The old arena was not sold and the shortfall in the financing scenario was compensated for by the excess Wintario grant proceeds. ( $312,000 was anticipated and $625,000 was actually received. ) 3. If the $14,558 were to be applied to the 1991 mill rate to reduce the 1991 taxes, the impact on the tax levy for the 1991 budget year would be approximately 1/5th of a mill rate and would not therefore significantly reduce the average tax bill. 4. If the $14,558 were to be applied to the arena debt for 1991, of $407,082 (Principal $112,364 + interest 294,718) , the application would have the same impact as reducing the mill rate above since the debt interest charges and payment terms are fixed and the debt charges form part of the general tax levy. 5. In keeping with the original intent of Council to contribute the old arena funds toward the new complex, it is therefore recommended that the funds be transferred to the Arena Reserve Fund for the future requirements of the Bowmanville Recreation Complex as directed by Council through the budget process or as directed by Council resolution. 5.1 The greatest impact may be toward the continuous projects being identified by the Community Services Department annually through the Town's Capital Budget process to see the Bowmanville Recreation Complex to it's completion. Respectfully submitted, Recommended for presentation to thq Committee, Marie Marano, H.BSc. , LawrencLi Kotseff, Treasurer. Chief A istrative Officer. J.P Caruana, IV Director of Community Services.