Town assumes finances, debt of rec centre

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By Jim Mosher
Friday January 05, 2007

Carry supports move to take over rec centre finances.
Interlake Spectator - WINNIPEG BEACH - Town council has pulled the fiscal plug on the board of the municipal recreation centre. It’s not ‘dismissing’ the board, but the town will no longer cover the centre’s debt, according to Marion Grogan, the town’s chief administrative officer.
The board used a $90,000 line of credit at the Winnipeg Beach branch of the Gimli Credit Union for operations. That line of credit is fully guaranteed by the town. But the building is closed and no longer generating revenue, though heating and electrical costs still must be paid,
In a letter late last month to the board, Grogan cites growing concerns about the physical state of the Hamilton Ave. building, which is now in the midst of interior reconstruction after mold was discovered in the building in September last year.
“We will be in contact with you and the Credit Union to make the necessary arrangements to assume the outstanding debt on the account,” Grogan writes.
The virtual town takeover was precipitated by the discovery of mold in the basement of the rec centre. The cost has hit $113,000; all of it covered by the town’s insurance. But there’s more work to be done after fungal spores were found in the ice surface area, Grogan confirmed Thursday. It’s unclear how much of the subsequent work will be covered.

“During the mold remediation process, we learned that there is possibly further mold damage in the ice surface area as well as definite building, electrical, sewer and water upgrades that are required in order to get the facility back to an operational level,” the town’s top administrator wrote in a letter dated Dec. 22, 2006. “Now that we are aware of the level of repairs required, it would be irresponsible of us to ignore them.”
Grogan referred to a proposal presented in late-November by rec board president Bonnie Dykes who suggested a partnership between the town and the rec board in the delivery of recreation programs.
In her presentation, Dykes suggested that the town’s recreation director could be stationed at the rec building.
The town apparently agrees. “Our vision of the future is an almost mirror image of many suggestions you provided to us in your proposal,” writes Grogan. “We also would like to see the Rec Director housed in, and responsible for, the facility. We feel this will play an integral part in the success of the rec centre in the future.”
Then Grogan adds cryptically: “Although we will no longer require the structure of the Board as it currently stands, there will be the opportunity for public involvement once the facility is operational. At that time, it is our intention to form an Advisory Committee, as a Committee of Council, to make recommendations on the use and programming involving the facility. We certainly invite you, at that time, to consider assisting us in that capacity.”
Deputy mayor Daryl Carry defended the move to assume financial control. He noted that the rec board decided early in the fall that it would not put ice in this winter.
“This has been an awkward situation,” he said Wednesday. “It seems the rec centre issue never ends. Things have changed dramatically as far as the mold remediation is concerned. It looks like no programming will be able to be offered there for a few months. We had to make arrangements to take over the debt and pay the bills. The shape it’s in now, there’s nothing going on there.”
Carry says he hopes the existing board and others will become involved, as the town restructures the whole recreation department. “We want people in the present group involved,” he said. “But this is not a two- or three-week fix.”