The Town of Hanna council heard a request for financial help after a rehabilitation project linked to economic development experienced a shortfall.
The presentation was made at the Jan. 14 regular meeting of council.
Councillors heard a presentation from Harvest Sky Economic Development Corporation Executive Director Thomas Trout regarding a funding shortfall with the roundhouse rehabilitation project; the roundhouse is a former railway structure now used as an events venue.
Readers should note the economic development corporation is funded by local municipalities including Hanna, the Special Areas and others and has a board of directors that reflects that.
Trout stated he was requesting financial help on behalf of Harvest Sky for the rehab project, whether in grant or in-kind form as a result of a substantial budget shortfall.
Coun. Sandra Beaudoin then stated that the rehabilitation project belongs to Harvest Sky and that the Roundhouse Society isn’t in charge of the rehab.
Trout noted that since 2022 Harvest Sky and partners have been working on the rehab project at the roundhouse which included things like installing washrooms and sewer service.
He stated that a consultant submitted a project estimate of $500,000; the project eventually secured funding of $550,000 through the Canada Coal Transition Initiative-Infrastructure Fund (CCTI-IF) – a Government of Canada program delivered by PrairiesCan.
“Despite this, significant funding challenges have emerged, with construction bids revealing a true cost ranging from $640,000 to $1.2 million, far exceeding initial estimates and leading to a shortfall of approximately $235,000,” said Trout.
Trout stated that project managers then sharpened their pencils and began trimming the project in an attempt to get it back under budget; this resulted, he stated, in a revised shortfall of $144,000. He further explained the project itself is underway and is about $417,000 from completion.
He noted that the project team approached Special Areas for extra funding and also got a project deadline extension to May 1. However, if the rehab project isn’t completed by May 1 the grant funds could be forfeited and the project itself could be in question.
Trout stated that after speaking to a representative of the Special Areas board it seemed that group may be willing to kick in more funding depending on the willingness to do so by other partners, including the Town of Hanna.
Councillors examined breakdown of project trimmings, some of which included painting that was cancelled.
Beaudoin, who said she was speaking as president of the Roundhouse Society, confirmed some project work was cancelled that the society felt volunteers could complete or that was unnecessary.
She confirmed if the project doesn’t go forward, the society will continue to operate the roundhouse.
Coun. Angie Warwick wondered if the remaining grant funds would be lost if unused. Trout confirmed that was accurate, noting about $417,000 in grant funds remain to be spent.
Warwick asked if the project could continue until those funds are gone, with Beaudoin interjecting that there was hesitancy to proceed after it was revealed the minimum total project cost was substantially higher than remaining funds.
Warwick asked how much of the shortfall Special Areas was willing to cover with Trout answering that decision has to go back to the Special Areas board.
During discussion a short-term loan was mentioned as one way to address budget problems but also recover some of the local funding.
Coun. Sandra Murphy stated she had concerns about Harvest Sky’s funding request, as in-kind help means town staff aren’t doing their usual jobs and a cash grant appeared to be fairly substantial. “Seventy thousand dollars is a lot,” said Murphy.
Trout stated Harvest Sky has also approached PrairiesCan for more help.
Warwick pointed out she is a town representative on the Harvest Sky board and the board hasn’t discussed this issue; she also wondered if Harvest Sky can kick in to cover the shortfall.
Trout confirmed Harvest Sky does have some funds and the board would decide if they’ll help cover the shortfall.
Stu Salkeld
Local Journalism Initiative reporter
ECA Review
