Report to: General Committee Date of Meeting:
SUBJECT: YMCA Funding and Programming Update
PREPARED BY: Catherine M. Conrad, Town Solicitor
RECOMMENDATION:
That the report entitled “YMCA Funding and Programming Update” be received;
AND THAT Council authorize the
AND THAT the Town’s maximum contribution be comprised of the following:
|
Land (4 acres) |
$2,000,000 |
|
Present Value of Land Lease (2 acres) |
$ 800,000 |
|
Building (1/3 of 60,000 sq ft @ $225/sq ft) |
$4,500,000 |
|
Excess Fundraising (per agreement) |
$ 200,000 |
|
Total |
$7,500,000 |
AND THAT the previously authorized development charge exemption and waiving of fees not be provided;
AND THAT the recommendations of
this report be conditional on the YMCA agreeing to amend the Community Access
Agreement to provide ten additional hours of rental access to the pool for
private swim clubs within Markham, to the satisfaction of the
FINANCIAL CONSIDERATIONS:
In June, 2004, Council approved a
funding formula from a variety of sources sufficient to provide one-third of
the estimated capital cost of constructing the Markham YMCA. The Town had already identified a need for
recreational facilities in
The capital cost of the YMCA
facility was estimated a $18 Million and the Town’s one-third share of $6
Million was comprised of land, cash, development charge exemptions and in kind
contributions (fees and charges otherwise payable). The
Town’s $2.7M capital contribution was originally determined on the premise that
the Draft Recreation, Culture and Library Indoor Facility Master Plan
contemplated construction of a 20,000 square foot satellite facility in the
Increasing the capital contribution to a maximum of $4.5 million would
provide the Town with recreation space at a cost per square foot of
approximately $225 ($225 x 20,000 sq ft = $4.5m). This is still a lower cost than the Town has recently
experienced and has no operating impact.
Any additional capital contribution up to $1.8 million ($4.5m - $2.7m)
will be funded 90% from Development Charge Reserves and 10% from the 10% Non
Growth DC Reserve.
The 20,000 square feet of space is also eligible for inclusion in the development charge service level at the higher replacement cost of $300 per square foot, which will assist in ensuring that service levels are maintained at a high level. The cost to construct equivalent space, if done by the Town, would be approximately $6 million, ($300 x 20,000 square feet), plus significant annual operating costs.
On