With the projected cost of the Greater Vernon Cultural Centre rising by millions, and fundraising efforts falling millions short, local politicians are set to discuss the uncertain future of the project.
The cost for the cultural centre is now estimated at $44.7 million, an increase of $2.8 million, according to a staff report from the Regional District of North Okanagan, submitted to the Greater Vernon Advisory Council (GVAC) ahead of a special meeting regarding the project on Wednesday.
In a 2022 referendum, voters approved the borrowing of $28 million for the centre, which meant that $13.9 million needed to be fundraised from external sources. That number is now $16.7 million with the increased costs outlined in the report.
So far, $5 million has been raised, which leaves the project at a crossroads. Last November, GVAC recommended that the $13.9 million fundraising goal should be met by July 2024, "or the Greater Vernon Cultural Centre project as envisaged by the approved $28 million borrowing would not proceed," the report states.
The $5 million has been secured through local government partner contributions, grants and fundraising, but in the report, staff acknowledge it is well short of the original target. And while talks continue with potential major donors and a roughly $1 million grant is pending, staff do not expect that the funding gap can be closed through fundraising and grants.
"With the project costs now updated and the funding gap widening, direction is being sought for the next steps in this project," reads the staff report.
Staff are presenting GVAC with three options.
Option one is to again seek voter approval to borrow more money in order to push forward with the project, though staff note this could result in "community disappointment and frustration" in the event that a new referendum is not successful.
The second option staff will present is to cancel the project and and conduct an assessment of infrastructure needs.
The third option would be to continue with the project, however, staff don't appear to be optimistic about the feasibility of doing so.
"Based on fundraising efforts to date, staff are not confident that we can meet our goals," the report says, adding cost escalation would continue to increase the funding gap. Staff say options to close the gap could include short-term borrowing or building reserves, but this would result in a "significant" tax increase.
Staff note that the retained architect team for the project may not be available to continue at a future date should the funds be secured, which would require updates to the previous design work.
GVAC politicians will discuss which direction to go with the project at its special meeting at 4 p.m. today, July 24.
