Burnaby staff are recommending cancelling a $240-million plan to redevelop the Confederation Park Community Centre due to financial constraints and a worry that the new facility could “overprovide” for the community.
Council postponed the project in August, when staff told them there was “insufficient funding” for the redevelopment, in part due to provincial changes around financing tools cities can use to pay for amenities like community centres.
Now, staff have returned with two options for councillors: abandon the project or redesign a smaller, cheaper facility, according to a report going to council Tuesday.
And staff have added another concern into the mix.
If the city builds the Confederation Park project, along with the recently approved Brentwood Community Centre, the northwest quadrant of the city would have almost three times the amount of recreation space per capita than the southwest quadrant.
“This disparity highlights the uneven distribution of recreational space across the city,” staff said, adding that the southern quadrants of the city would benefit from increased recreation space.
Option 1: Abandoning the Confederation Park Community Centre
Staff recommended abandoning the project until there is enough funding and increased demand for recreation services in the northwest.
Staff said leaving the project until later would ensure “a well-balanced distribution of recreation services” across the city, noting “other quadrants demonstrate a more pressing need” for recreational space (particularly in town centres).
Still, cancelling the project now would require terminating existing contracts and incurring associated fees.
The city has already spent about $15.8 million on the project.
In the meantime, staff said the northwest quadrant would continue to be served by the existing community centre.
“The Confederation Park site already offers a range of indoor amenities for all ages and abilities,” stated the report.
Staff suggested, if council cancels the redevelopment, using existing facilities to increase service in the Capitol Hill neighbourhood, such as expanding the use of the Confederation Senior’s Centre “to other segments of the population” during non-peak times.
Option 2: Redesigning Confederation Park Community Centre
Council will also consider a second option: redesigning the community centre to be smaller and shaving off $80 million from the project cost.
Staff said a $160-million facility could still add programming opportunities and align with other city goals, but the option risks an “overdevelopment of service” in the northwest.
If the city goes ahead with the community centre (which would be expected to open in early 2029), it would be the fourth recreation centre to open within two years, which staff said would bring “general complexities and operational challenges.”
The expanded programs and maintenance for the Confederation project “would incur significant staffing and operational costs,” estimated at about $5.6 million.
Those new costs would result in an estimated increased tax rate of 1.6 per cent, according to the report.
Funding questions
If council votes to proceed with the smaller redesigned facility, the city would have to develop a new funding strategy for the capital costs too.
The city previously planned to use money from its community benefit bonus reserve, which came from the city allowing developers to build more condos in exchange for giving the city cash for public amenities, but that reserve has been exhausted.
Instead, staff said the city could defer the project until it accumulates funds from new “amenity cost charges,” which are charges levied on developers.
But if the city waits until enough it collects enough money, the project cost could also increase due to inflation.
The other option is taking on debt, which would reverse a decades-long financial principle of the city.
Staff estimated a total loan cost of $256 million using a 20-year amortization period, according to the report.
Council will discuss the options and vote at its meeting Tuesday, Jan. 28.
