North Bay City Council will look tonight at spending $440,000 to bail out overspending on a Canadore College post-production facility.
That comes as a recommendation from Chief Administrative Officer Keith Robicheau who argues that the city should cover the increased construction costs of the Post Production Facility capital project at its main campus.
"This has been attributed to a broader construction trend across the North with tender results coming in as much as 15%-20% above estimates," says Robicheau in his report.
"This resulted in Strategic Infrastructure Projects being cancelled in other municipalities. Canadore decided to press on in the interest of developing the industry in North Bay."
Canadore already received funding of $1.3 million through the Northern Ontario Heritage Fund and $500,000 from FedNor.
"Although such assistance is very rarely requested by Canadore, a contribution by the City of North Bay provides much needed support and endorsement by all three levels of government for this important new facility," says Robicheau.
See: Canadore Post production facility is open for business
That use of municipal tax dollars doesn't sit well with Gary Gardiner, a citizen who intends to address council tonight on the issue.
"Now we have a request from the administration at the college for a $440,000 bailout despite the fact that the budget year started three months ago," Gardiner writes in his presentation.
"More significantly, this 'grant' request is not prior to the commencement of the project, but several months after it was completed and the request is to simply pay for cost over-runs that apparently the staff at Canadore were unable, or choose not to contain. And this is where it gets unbelievable…the college wants the taxpayers of North Bay to pay for their apparent indifference to their budget. I know $440,000 is not a lot of money to some people, but to me it is.
Robicheau defended the request.
"This is not precedent setting. Councils are not bound by precedent and decide each public policy matter on its own merits, including financial decisions."
In an earlier release, Canadore said, "The Post Production facility at Canadore is a for-profit operation that will focus on finishing Film, TV and video projects."
It adds the 5,588 sq. ft. facility carries a price tag in excess of $2 million.
The council meeting starts tonight at 6:30 p.m.
See Gardiner's complete presentation below.
My appearance here tonight is to voice opposition to agenda item 5, in which the CAO is requesting $440,000 on Canadore’s behalf for a Post Production Facility designated as a for profit enterprise. Yes, this is a project in which Canadore expects to make money!
First, let me say that the film industry and the strides that Canadore College is making to enhance and promote this industry in North Bay is exceptional. And of course Canadore is a great community partner, and its leaders and students are a vital part of this community.
My issues tonight in opposing the proposed $440,000 bailout are as follows:
- Budget procedure and process
- Transparency
- Fairness
- Invest North Bay
1. BUDGET PROCEDURE AND PROCESS
In a normal budget year, Agencies, Boards and Commission, as well as other entities such as the Ski Hill, that are seeking financial contributions from the City of North Bay respect the budget process and make application at the beginning of November (just as the snow is starting to fly). That affords council the ability to prioritize and allocate funding based on the merits of the applications and the amount of money the city expects in revenue.
For example, the Laurentian Ski Hill was successful in securing a $60,000 grant. The Dionne Quints Museum Board request for a $25,000 operating grant, on the other hand, was rejected.
Now we have a request from the administration at the college for a $440,000 bailout despite the fact that the budget year started three months ago. More significantly, this “grant” request is not prior to the commencement of the project, but several months after it was completed and the request is to simply pay for cost over-runs that apparently the staff at Canadore were unable, or choose not to contain. And this is where it gets unbelievable. …… the college wants the taxpayers of North Bay to pay for their apparent indifference to their budget. I know $440,000 is not a lot of money to some people, but to me it is.
So I challenge council to ask, “Where was Canadore at the beginning of the budget process”? After all, the FedNor and the Northern Ontario Heritage Fund Corporation announced their contributions totaling $1.8 M for the project over one year ago. Why not apply to the City of North Bay back in November as every other group did? Furthermore, the facility, although not 100% complete, was already operating in the fall of 2017 so they obviously knew back in November that they were in a financial predicament.
2. TRANSPARENCY
I reviewed the supporting material on the city “agenda” website and I was unable to find a signed letter by an officer of the college requesting the stated funds. Surely as North Bay strives to be open, transparent and accountable that this information would be provided to the members of council and to the general public. This is, after all, public money we are talking about.
Most importantly, this Post Production Facility is a “for-profit” enterprise. President George Burton has stated that he expected that the facility would be busy on the business side and noted that the local filming calendar was quickly filling up.
So, not only will this facility earn revenue, the students who will be sharing in the post-production process get to pay $6500 per year for the privilege of working for free and international student pay $20,000 (per year). With free labour and the facility forecasted to be fully booked, I am sure the college is in a position to finance the outstanding construction cost itself.
3. FAIRNESS
There are a lot of great causes in North Bay. I have to really question why the City of North Bay would provide a grant to a for-profit enterprise when our own volunteer groups have been denied. And our volunteer groups respect the budget process and appear in person before council.
4. INVEST NORTH BAY
Invest North Bay does a lot of behind-the-scenes work including nurturing the film industry. The Post-Production Facility at Canadore, in my mind, fits their mandate to a “T”. Perhaps the request can be forwarded to Invest North Bay and the group can evaluate Canadore’s business plan and determine if it makes sense to invest in the facility and determine what type of return would be appropriate. After all, this is a for-profit enterprise and investors should be compensated.
Gary Gardiner
