City Council frets over Cassellholme redevelopment project

Cassellholme's provincially mandated redevelopment raised concerns during Monday's City Council meeting.

The current building has been deemed inadequate by the province in meeting with Ontario's aging population and needs significant and costly upgrades throughout the existing facility.

As well, council is looking to add a total of 32 long term care beds to the 240 that are in high demand to the current Cassellholme occupancy.

This will see a proposed investment of 60 million dollars over the next 20 years, with 45 percent of the project being funded by the province.

The rest of the cost is expected to be covered by the municipality, which would be added to the municipal tax base.

North Bay councillors who pride themselves in working within a strict and well run budget are finding this announcement a bit tough to take, saying this could be a big hit to the municipal wallet.

Mayor Al McDonald spoke about his message to the province that it was beyond the City's financial capabilities to live up to these recent mandated changes to Cassellholme.

“It is a substantial amount of money, we can't afford to finance it ourselves,” says McDonald.

“If this project is going to go forward, Infrastructure Ontario is going to have to finance it through Cassellholme.”

Councillor Dave Mendicino highlighted the legal aspects of whether Cassellholme or the City would be responsible for carrying these debts on their books and it remains unclear as to where the funds must be drawn.

The City is recommending that Cassellholme borrow the money

“If the Ministry follows through and allows Cassellholme to borrow the money, council's in full support” Mendicino says.

"If the Ministry is not going to allow Cassellholme to borrow the money and turns to the City of North Bay, then council will fight the province to cancel the project.”
Mendicino says that the City of North Bay can't handle that amount of debt without having to jeopardize its existing capital programs."

"Major capital projects would have to be reviewed and possibly cancelled, our Moody's rating would, in all likelihood, be affected in a negative way,” he says.

“Council's basically saying, loud and clear, that it cannot happen.”