Alix is refinancing Railway House – the now defunct Moonwalkers Activity Centre – for $1.4 million.
After an in-camera session, council passed a motion on Jan. 3 to refinance the building. The village received a legal opinion, which due to FOIP issues, was discussed in-camera, and were advised to pass a borrowing bylaw.
How much Alix will lose on Moonwalkers overall isn’t known yet.
“We’re borrowing and going forward with this. That is something that needs to be calculated over time when we go into negotiations with the owner,” said Michelle White, Alix’s chief administrative officer.
By refinancing, the village decreases its annual payments from $138,789 to only $72,000 a year. The village will also pay out the remaining $56,000 owing on the current lease agreement.
The village closed Moonwalkers Dec. 12, 2016, after BDO Canada presented Moonwalkers’ financial report that same day revealing since Moonwalkers opened in 2013, it lost $553,673. The village funded Moonwalkers’ deficit through taxation.
Municipal Affairs investigation was a result of a group of Alix residents that submitted two petitions to Municipal Affairs in March 2016, each petition asked the government to investigate the village council and administration.
The group’s petitions cited high taxes and how the village spent tax dollars as reasons for one petition. The second petition asked Municipal Affairs to determine the viability of the municipality.
In November 2016 the Minister of Municipal Affairs launched an in-depth review and ordered a municipal inspection.
In September 2017 Municipal Affairs ordered the village to provide the minister with a copy of the borrowing bylaw that authorized the Moonwalkers lease.
The minister also ordered the village to hire a qualified accounting firm to undertake a review of Moonwalkers lease to review and recalculate the village’s 2016 total debt and provide the report to the Minister of Municipal Affairs.
In August 2017 council changed Moonwalkers Activity Centre’s name to Railway House. They sold the playground equipment from the 3,500 square foot interactive play centre for $5,700.
Moonwalkers previously operated for 14 years in Red Deer, closing in 2009.
Lisa Joy
ECA Review
