The Municipality of Chatham-Kent is reporting that the proposed new community hub in downtown Chatham won't cost taxpayers more money than what has already been approved in its multi-year budget.
A report going to Chatham-Kent Council on October 21, but released on Monday, said the project is expected to be funded under existing budgets already approved in the 2024-2027 multi-year spending plan "without further impacting taxpayers in the future."
However, officials said the new hub will cost more to operate compared to the existing Civic Centre mainly due to extra security costs. Security costs are expected to increase from $45,000 to $605,000 a year going from current part time security for Council meetings to around the clock security.
Municipal staff also report a detailed review of operations and costs will occur during the detailed design phase, where financials will be further refined as the project advances.
"With Long Term Financial Planning, this and previous Councils have funded the Asset Management Plan, approved Development Charges, and strategically funded 1 per cent tax equivalent for new buildings. Together, these initiatives have resulted in no further funding from taxpayers required to complete this project at its current $53,000,000 estimated cost," wrote CK administration in its report going to Council October 21. "The potential sale of the Civic Centre and Library properties, along with sponsorship and naming rights opportunities, offers a viable funding source to offset the capital costs of the Chatham-Kent Community Hub."
According to administration, the proposed design expands the existing total space of the Civic Centre, library, and museum from 78,160 to 119,278 square feet, representing a 52 per cent overall increase.
"While the expanded space will lead to increased annual operational costs, the design incorporates energy-efficient systems and sustainable materials to help mitigate long-term expenses," said municipal officials. "The current facilities, including the Civic Centre, Chatham Library branch, and shared museum areas, utilize 78,160 square feet of space. While this layout has served as a base for municipal services, it limits flexibility, lacks modern amenities, and restricts the capacity to accommodate future growth. The existing buildings do not fully support evolving community needs or provide adequate space for shared programming and multifunctional uses. The proposed redesign aims to address these challenges by optimizing space utilization, enhancing accessibility, and creating adaptable spaces that better serve both municipal operations and public engagement."
The proposed hub will consolidate the Civic Centre, library, and museum at the former Sears building at 100 King Street in Chatham and is projected to cost $53 million compared to renovating the current Civic Centre for $37 million.
If the detailed design phase is approved on October 21, then an updated project budget will be presented to Council in the first quarter of 2025 with final estimated costs.
Construction procurement and Council approval to award the construction contract is expected to happen between April and July 2025. Construction is anticipated to start in the Summer of 2025 and take 18-24 months.
The Chatham-Kent Community Hub report has been published in advance of the October 21 Council meeting to allow the public a chance to view it before it goes to a vote.
On October 21, councillors will decide if they'll keep moving ahead with the project and send it to phase three, which is the detailed design phase.
Administration is recommending that Architecturra Inc. be awarded the detailed design contract in the amount of $2.1 million to be funded from the Buildings Lifecycle Reserve.
Other recommendations include hiring a Project Manager – ITT for nine months to support the Detailed Design and construction of the hub at a cost of almost $106,000, also to be funded from the Buildings Lifecycle Reserve.
The municipality can sell the Sears property back to its owners at the same purchase price within 18-24 months if it decides to not proceed with redeveloping the property.
Click here to take a tour through the proposed Chatham-Kent Community Hub.
Detailed design concept drawings for CK Community Hub can be viewed by clicking here.