The clock is ticking for those who oppose the $ 23 million loan for a new protection services building
City Council gave the first reading to borrow $ 23 million for the development of a new protective services building.
The public now has the option of asking the city to conduct a plebiscite on the loan. It must be presented to the municipality within 15 days of the date of its last publication in a local newspaper.
The city is financing the entire project through debt, with repayment to come from a combination of rental income from tenants, off-site levies and property taxes.
The funds would be borrowed for 25 years, which is the length of the lease with the RCMP, and would cost no more than $ 1,463,867 per year. The regulations state that the interest rate cannot exceed four percent. The interest rate and payment schedule will not be finalized until the loan is repaid.
Katherine Van Keimpema, chief executive of business services, says she doesn’t expect the city to borrow the funds until the end of 2022.
She says the current Alberta Capital Financing Authority interest rate is 2.232 percent, but it can change.
The second and third readings are expected to be given by city council on March 22. Thirty days later, the regulations would come into force.