There is no question that the $121M all-inclusive price tag for the reconstruction of Cassellholme is higher than anyone expected. But this is one project that we cannot afford not to do.
Currently, the waiting list at Cassellholme stands at over 280. Even more concerning is the fact that approximately 70 of these waitlisted individuals are in hospital beds clogging up Acute Care capacity.
And, the baby boomer bubble is about to put an even bigger strain on our Long Term Care Facilities as North Bay’s senior cohort of 70 years and older is predicted to grow by 71% by 2046.
Therefore, I was disappointed by the recent stance taken by City Council to delay their commitment to the funding proposal from the Cassellholme Board in order to explore other funding options including an apparent interest from a local bank to finance the city’s share of the project.
On the face, it appears to be a well-intentioned motion, except that the city has known for at least three months what the structure of the financing proposal would look like including the requirement for the City to guarantee its share of the provincial funding commitment. The only unknown was the final number. So it begs the question - why was this due diligence not completed over the last 90 days? Why wait until the 11th hour?
The Cassellholme management team has worked diligently with Infrastructure Ontario’s senior staff for more than a year to put this complicated financial plan in place. Infrastructure Ontario (IO) actually became the only path forward as no financial institutions were interested despite the best efforts from Cassellholme’s financial team to woo them. Most importantly, IO offers the lowest possible interest rates. Banks cannot match their rates and to put things in perspective a 1% increase in interest rates represents an additional $15M in cost.
On a per-capita basis, all participating municipalities face exactly the same budget pressures. North Bay is no different and needs to get on side sooner than later, after all this has been ten years in the making.
Gary Gardiner
Nipissing Township
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