Price tag for new Regina indoor aquatic centre grows to $245M

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The cost of constructing a state-of-the-art indoor facility to replace the Lawson Aquatic Centre has grown to $245.1 million, according to a report by City of Regina staff.

An update on the Indoor Aquatic Facility (IAF) discussed Wednesday by city council’s executive committee notes another $84.4 million is needed if the city wants to finish the project as first envisioned.

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To push forward, city administration says another debt-limit increase is needed, which would result in a second petition to the Saskatchewan Municipal Board (SMB) this year.

The request, combined with several other proposed capital projects including the Central Library, is to add $230 million to the city’s debt ceiling, taking it from the current $660 million up to $890 million.

In a 7-2 vote, the committee recommended that council delay a decision on a new IAF budget pending exploration of whether funding can be sourced from somewhere other than city debt. Administration is scheduled to come back with an answer on Oct. 2, which will be the last time council meets before the municipal election.

The debt limit recommendation passed 7-2 in favour of having administration pursue the request, despite not having locked in a new budget for the IAF yet.

“We’ve known for some time the project was going to be over cost, so we should be able to look at options for borrowing or other revenues,” said Mayor Sandra Masters, who crafted the successful referral motion.

“We know its a big-ticket item and it looks beautiful. We just have to figure out how to responsibly try to finance it.”

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Masters’ motion directed city staff to seek more funding from the federal and provincial governments and to pursue a philanthropic study.

“I don’t know why we haven’t gone out for philanthropic or sponsorship yet,” Masters said during comments to the media after the vote.

Couns. Cheryl Stadnichuk (Ward 1) and Shanon Zachidniak (Ward 8) voted against the referral, citing concerns more delays would only worsen inflationary pressures.

“That amount of an increase is a surprise,” Zachidniak told media, while on a break from the meeting. “But we didn’t have to delay making a decision in order to investigate other potential funding sources.”

The new facility was first proposed as an $85-million project in Masters’ 2020 election campaign. It was then explored by the city’s catalyst committee in 2022 and green lit with a $160.7 million capital budget in 2023 based on a cost study done two years prior.

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Another $28.5 million for geothermal heating was also approved in 2023. The heating system will now be housed inside the IAF instead of a separate facility, the city said Wednesday.

All three levels of government sealed the deal in March on a cost-share agreement through the federal government’s Investing in Canada Infrastructure Program (ICIP). 

Federal and provincial contributions are locked in at $43.2 million and $36 million, respectively, with the City of Regina responsible for covering the rest. That share was $81.5 million when approved, and has now doubled to $165.9 million.

Of the $84.4-million increase, $44.1 million is due to general inflation but $40.3 million is tied to a better understanding of the project’s scope, according to the report.

Manager of facilities and engineering Jaime Hanson said the design team now has more clarity on what’s needed to build the many amenities desired for the facility.

The current design includes two 50-metre lane pools, a 25-metre leisure pool, a waterpark featuring a lazy river, wave pool and three waterslides, two hot tubs, a plunge pool, sauna, playground, fitness studio, concession and multi-purpose rooms.

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During debate, Stadnichuk asked if it’s possible to go back to the feds for more ICIP funding to at least help cover inflation. Chief of staff to the city manager Ly Pham said the question has been asked but so far “we have not heard back.”

The at-home solution would be to cut elements from the facility, offered Hanson.

Eliminating the leisure pool and shrinking the waterpark could shave off $12.2 million. Also, reducing one of the 10-lane, 50-metre pools by two lanes and a further reduction to the waterpark could cut another $23.4 million. 

Project lead Bobbie Selinger advised against either of these options, reminding council the facility is meant to replace and update the Lawson, which is in the last five years of its lifespan.

The full design is what would meet the needs of both recreational and competitive users, including Olympic athletes training in Regina, Selinger said.

Hanson also noted previous conditions for ICIP funding included that the Lawson must be decommissioned, but that is no longer part of the agreement.

In response, Ward 4 councillor Lori Bresciani wondered if it is “of value” to consider keeping the Lawson open as a recreational pool, and shifting the IAF to just a competition space.

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Coun. Bob Hawkins (Ward 2) called the suggestion a “red herring” and cited “heavy worry” it may end up costing just as much as what’s currently on the table.

Extending the life of the Lawson, as is, for another 15 years would cost $28 million, according to city staff. And altering the IAF’s design now could mean losses of $1 million to $2 million per week if construction is delayed past the set start date of September 2025.

“This is a first-class design,” Hawkins said. “I think we have to be careful, in Regina, not to always settle for second best.”

“The Lawson is still 14 years behind,” said Masters. “And yes, it was cheaper 20 years ago, but it won’t be cheaper than today and so investing in it. . . that is easier to do now.”

She added that with news the old pool no longer has to be closed, “repurposing [the Lawson] for recreational or competitive sports, I think, could be on the horizon for council.”

City council will consider both the IAF budget referral and the debt limit increase for a final vote on Aug. 21.

lkurz@postmedia.com

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