Regional district 'not confident' it can pay for $44.7M Greater Vernon Cultural Centre

The Great Vernon Cultural Centre has a $9-million funding shortfall leaving politicians to make a tough decision over the project's future. With the cost for the cultural centre now estimated at $44.7-million, the project is $8.9-million behind in its fundraising efforts and according to a Regional District of North Okanagan staff report, it's not expected to fill this shortfall with grants and fundraising. The staff report on the cultural centre doesn't paint a rosy picture about the future of the project. Whether the $8.9-million shortfall will have to be picked up by taxpayers isn't yet known, but the Greater Vernon Advisory Committee is set to meet July 24, in a special meeting to discuss the future of the centre. Advisory committee chair Bob Fleming told iNFOnews.ca today, July 22, he wouldn't discuss his opinion on what to do before Thursday's meeting. The proposed cultural centre has had a turbulent time since voters first approved borrowing https://infotel.ca/newsitem/voters-approved-the-greater-vernon-cultural-centre-so-now-what/it56715 $40 million to build it at a referendum in 2018. Three years later, much needed senior government grants didn't come through, and the cultural centre plan was sent back to the electorate https://infotel.ca/newsitem/politicians-break-promise-will-borrow-28m-for-greater-vernon-cultural-centre/it86904 to OK borrowing $28-million for a smaller, scaled-down version https://infotel.ca/newsitem/few-votes-against-means-greater-vernon-cultural-centre-moving-forward/it90505 of the original 2018 proposal. Since then, unexpected inflation — which was particularly high in the construction industry — has pushed costs up, meaning the proposed scaled-down cultural centre is set to cost more than the original plan. The issue currently on the table is the $13.9-million fundraising goal which it was hoped would have been met or "substantively progressed" by July 2024. So far, only $5-million of the $13.9-million has been raised and staff don't sound optimistic about the outstanding amount. "While productive conversations continue to occur with potential major donors, and a grant application has been submitted for $1.05 million in funding, it's not expected that the funding gap can be closed through fundraising and grants," a staff report said. Staff have laid out three options for the politicians to choose from. One option is to ask the public if they can borrow the money, which the report pointed out could result in "community disappointment and frustration" if a second referendum isn't successful. In 2018, 59% of voters said yes to the centre. The regional district staff report said the second option could be to cancel the project and "review infrastructure needs." What the review would achieve is less clear with bureaucrats saying it would "(identify) infrastructure improvements and incorporate additional community engagement to inform the prioritization of those improvements." It points out that if long-term debt is required for the "infrastructure improvements" then the public would need to be asked. The third option in the staff report is to continue with the project. The issue with this is that staff are "not confident" the $8.9-million to cover the shortfall can be raised. The report noted the funding gap could be reduced with short-term borrowing which would result in "significant" tax increases. The report said that "productive conversations" continue with major donors and grants have been applied for, but highlighted that these alone are not expected to fill the funding gap. The local politicians are scheduled to make the tough decision about what to do at a meeting Thursday, July 25. To contact a reporter for this story, email Ben Bulmer mailto:bbulmer@infonews.ca  or call (250) 309-5230 or email the editor mailto:news@infonews.ca . You can also submit photos, videos or news tips to the newsroom mailto:tips@infonews.ca  and be entered to win a monthly prize draw. We welcome your comments and opinions on our stories but play nice. We won't censor or delete comments unless they contain off-topic statements or links, unnecessary vulgarity, false facts, spam or obviously fake profiles. If you have any concerns about what you see in comments, email the editor in the link above. SUBSCRIBE to our awesome newsletter here https://infotel.ca/newsletter .