Dawson City needs more money for proposed new recreation centre

Residents of Dawson City have been excited at the idea of having a new recreation facility for many years.

Now that the idea is turning into a reality, that reality is becoming all too real for the town's mayor and council.

Especially when it comes to the price tag that will come with it.

During a committee of the whole meeting on Wednesday evening, the committee presented council with two new schematic designs.

"The major difference between the two," Dawson City mayor Bill Kendrick said, "Option B utilizes the second floor and adds components to the second floor of the facility, whereas option A just leaves the second floor for various mechanical systems."

Kendrick said the council unanimously preferred Option B, but the actual vote won't happen until later this month.

Kendrick told CBC News that the early cost estimate for option B is $75.3 million. This is up $5.4 million from last year when council said they would look into going with option A at around $69.9 million.

And then there is the yearly operating and maintenance cost.

"There wasn't a big difference ... between option A and option B," Kendrick told CBC News. "Regardless, either option, the O and M is projected to be over $2 million a year."

Kendrick said the municipality is still working with project partners on the design, planing, and cost phase so at this point no "trigger" has been pulled on the actual construction of the facility.

'Potential shortfall'

The recent discussion of the new recreation centre comes shortly after the municipality raised taxes and fees for residents living within town limits.

Kendrick acknowledges this is not the best situation to be in while planning a multi-million dollar project of this kind.

"This would be a big stumbling block right now," he said. "I mean, assuming we even have the capital funding, which does appear to be a potential shortfall."

One thing Kendrick said he doesn't want is to see the financial burden fall on Dawson taxpayers ... or at least, just the current ones.

"We don't have a real means of increasing our taxpayer base," he said. "It puts increasing pressure on all of us who currently live in Dawson City. That's why housing is such a priority."

"I know Whitehorse has had to increase their fees and their tax rate all the while getting hundreds and hundreds of new lots, for example, in Whistle Bend. So it doesn't help our community if we have all of these things working against us right? So we're very hopeful to see projects like Dredge Pond two residential subdivision get up and running as soon as possible."

Kendrick said the project plans are still very early and nothing is set in stone yet. He said this will continue to be discussed at council meetings as well as with project partners and the Dawson community.

"Stay tuned," Kendrick said. "This will come up over the weeks and months as we get better information. We're looking at how the grants work from the Yukon Government. We intend to bring a resolution to the Association of Yukon Communities annual general meeting ... having the Yukon Government look at tax rate differential between folks within the municipal boundary and those who are outside of it.

"Because as everyone in the city of Dawson knows we've recently moved forward with some serious rate increases and even with the increases, this new proposed rec facility is not necessarily something that can be afforded under the current tax and grant structure that Dawson City has."