City Seeks $80,000,000 Borrowing Power
City council will be considering the question to ask taxpayers in order to proceed with the Event Centre to be situated on the waterfront property known as the Wellcox property. This property is currently occupied by Seaspan and the Southern Rail Company and was purchased in recent years by the city of Nanaimo. Between Seaspan and the rail interests over 80% of this property was not in the control of the city as these companies have perpetual rights of use licences for which the rail company pays no rent, and Seaspan pays a nominal $30,000/yr.
The question being considered is to authorize a Loan Bylaw which would permit the city to borrow up to $80,000,000 to build and service an events centre on this property.
The staff report indicates the debt service on the $80 million loan would be $5,377,260 annually for a period of 20 years @ 3% interest. It is said this debt can be serviced from current revenue sources and will not increase municipal property taxes.
The matter will be considered at a Special Council Meeting in the Shaw Auditorium at 5:00 pm Wed. Jan. 25/17. The agenda for this meeting which also contains the complete staff report can be seen on the City website using this LINK.
Question for Council
will taxes go down if this is defeated?
If this $80,000,000 debt can be serviced at an annual cost of $5,377,260.00 without increasing property taxes, does that mean that if this is defeated by the taxpayer that the city could then apply the money to reducing our taxes by about 5% annually over the same period. It would seem that they could if they had the political will and it begs the question if we are not currently being overtaxed??