District of Squamish council has agreed to act as a guarantor for a $500,000 loan meant to help complete the West Coast Railway Heritage Park's Roundhouse project.
Park president and chief executive officer Don Evans made the plea to municipal councillors at the Committee of the Whole meeting on Tuesday (Nov.10), after giving them a personal tour of the partially completed 22,000 sq. ft. facility.
"I am this morning, asking that the District of Squamish through council to consider helping us get the building completed without any further delays," he said. "It's about timing not about dollars. It's about helping us while we raise the remaining dollars to finish the facility."
To date, roundhouse project organizers have raised $6.8 million dollars for the facility, but additional $1 million is still needed for the final stages of construction.
The West Coast Railway Association needs the district to act as a guarantor in order to secure $500,000 from a financial institution and not interrupt construction.
"We're willing to take the risk that we'll have the other $500,000 in a couple of months, but the [entire] $1 million is just a little bit of a stretch," he said.
Evans assured council members that the foundation can raise the money, but they are running out of time to do so without interrupting the flow of construction.
"We will raise that $1 million, there's no question about it. The issue is getting that $1 million without having to stop construction," he said.
If the non-profit organization cannot secure the remaining funds, construction has to stop and re-start when funding becomes available.
This, Evans said, would increase the overall cost of the project and ultimately limit the amount of economic impact the community could expect from the new facility in 2010.
District financial director Ralph Hughes outlined potential options for councillors to consider including acting as a guarantor, term lengths and collateral.
Coun. Corinne Lonsdale asked if the district would receive equity as collateral. Evans responded by saying the West Coast Railway Heritage Park has a current estimated value of $14 million.
"So putting something behind it as security is definitely not as issue."
Coun. Doug Race inquired about the term length the association is considering and Evans said he feels confidant the $1 million can be raised within a year.
"We raised $4 million dollars this year, in a bad economy and I don't anticipate $1 million to take me five years," said Race.
After a lengthy discussion, Mayor Greg Gardner, Lonsdale, Race and Coun. Rob Kirkham agreed they felt comfortable with a longer term rather than a shorter one.
"I would rather than go with three years, or go with five years, in fact I was thinking earlier, I would rather go with 10 [years] just to be safe," Lonsdale said.
If construction proceeds as planned, the main part of the facility could be ready for operation by mid-January 2010, before the upcoming Winter Games, said Evans.
Evans said having the Roundhouse open and ready for operation in the New Year would greatly benefit the entire community of Squamish during the Olympic timeframe and beyond. Several interested parties have requested the facility to host events in 2010, including a local high school graduation and a Molson launch party.
"There is a huge demand for this facility in Squamish," he said. "Because today's Squamish does not have a large, high-quality, public facility that can attract large banquets, events, meetings and even conferences."
Once completed, the facility will act as an exhibit space for railcars as well as a conference centre which can accommodate up to 12,000 people in a theatre-style seating or up to 800 people in a banquet setting.
"It's really aimed at bringing new groups and new business to Squamish."
According to Evans, the roundhouse project has to date generated more than $3 million in the local economy including a $360,000 contract for brickwork with a local company.
The West Coast Heritage Park has favoured local businesses and contractors when considering contracts and now they need the community to consider them. Evans asked councillors to either consider acting as a guarantor or lending the funds directly to the organization.
Chief Administrative Officer Kevin Ramsey suggested the district financial office take a look at this request and provide their input on the matter as well as create a general policy guideline on similar types of requests.
Council unanimously motioned to support Evans's request to act as a guarantor for $500,000 for a five-year term, providing a report from the director of finance.
