The (Almost) Secret Budget for REC-Reate Strathcona Gardens

Roy L Hales/Cortes Currents - The Strathcona Regional District (SRD) may have a nasty surprise for property owners in Campbell River and Area D. They may soon be asked to approve an additional $54 million debt to finance the second phase of the new REC-REATE Strathcona Gardens project. When they originally consented through an Alternative Approval Process (which automatically passes unless 10% of the electorate object), taxpayers were informed the cost was almost half of what is now being put forward “The April 2023 staff report indicated that both phases of the REC-CREATE project were going to be included. They had a Class A estimate they were using for the swimming pool and Wellness Center and they had a  2019 Class D estimate for the ice arena. They also said that the Class D estimate for the ice arena had been escalated. So you would assume by reading that the April  2023 staff report was costed up to be based on current construction costs and inflation.  In addition to that, what I found in the staff report was that they said that the $73 million would include both phases and that staff would strive to deliver the project within the $73 million budget.  That staff report, since it was in April 2023, was less than two years ago,” explained Deborah Rasnick, a professional accountant who worked in senior budget positions of BC public sector organizations for 15 years. “ The new business case that was presented in December of 2024, and approved tentatively by the Strathcona Gardens Commission now, has an estimated cost for phase two only of $58 million. That's on top of The previous approval. So the total cost now of the entire REC-REATE project could increase to around $130 million, and that's an 80% increase from the prior amount.”  “Same thing goes with debt. The original approval allowed for the SRD to borrow Up to $64.67 million and that was approved through AAP. Now this new REC-REATE project phase two, as they're calling it,  wants to allow for an additional $54 million, creating a total debt of up to $118 million, providing they get authority to do that from the participants in the Strathcona Gardens service area.  That increase to total debt reflects an over 80% increase from the prior balance as well.”