CANMORE – Canmore will need to ask the provincial government to extend its municipal debt limit in order to borrow $66 million to build an Athletes Village as part of the proposed 2026 Olympic and Paralympic bid.
Alberta municipalities have legislated debt limits based on a formula that sets the amount of borrowing permitted at 1.5 times the previous year’s revenues, but it can be exceeded with permission from the provincial government.
In order to understand the financial implications as co-host of the Winter Games, Chief Administrative Officer Lisa de Soto recommended the municipality seek permission now for debt that would be needed in 2024.
“In a few weeks time you will be asked to make a decision on whether or not to support the bid,” de Soto said. “Integral to that decision is understanding how we will be able to fund those projects related to the Games in Canmore.”
As the proposed mountain host, de Soto said Canmore would be expected to deliver an Athletes Village – comprised of 1,000 beds or 242 units of housing. The proposal is to turn over 90 per cent of those units to Canmore Community Housing Corporation and provide 24 units as a housing legacy for athletes and coaches to be managed by WinSport.
The opportunity to achieve a significant legacy of affordable housing, de Soto said, would not be available to the municipality at this scale without the Olympics bid corporation’s contribution, which is estimated at $42.1 million for the project and would be part of the multi-party agreement.
Canmore plans to contribute $10 million toward the project, which includes $6 million in land value, offsite levies and other infrastructure costs like a portion of flood mitigation and a pedestrian overpass.
However, the $116 million overall budget still requires $64.2 million, and while the sale of units after the games would bring in that amount of revenue, financing is needed for construction in advance.
“Canmore is being asked to sign a guarantee related to the delivery of the Village and along with that will come costs,” de Soto said. “But it does need to be financed. We don’t get that $64.2 million from the sale of the units until after people take possession.”
Should the Olympic bid be successful, the expectation is that the $66 million debenture would exceed Canmore’s legislated debt limits. Currently, Canmore has a debt limit of $87 million and holds $40 million in debt. Over the next six years, de Soto said the municipality is expected to pay off $21 million in debt, but could also add $38 million to $55 million in debt based on draft capital budgets expected to be presented to council in November.
She projected Canmore’s debt limit would increase to $116 million by 2024, but that leaves a range of $42 million to $59 million in available debt.
“We would be offside of the Municipal Government Act to pass a borrowing bylaw until we have (permission) from the minister and we cannot request that of the minister without council passing a motion,” de Soto said. “Part of the order will have the term of the borrowing and we are currently proposing a five-year term.”
Council voted unanimously in favour of the motion, but Mayor John Borrowman expressed his desire to also hear from the community during a Oct. 30 public hearing.
“Probably the most important legacy in my mind from being a host would be being able to provide this housing project to meet the needs of our community,” said the mayor.
