Concept design of Greater Vernon Cultural Centre (image courtesy of the RDNO)

By Liam Verster

$13M Five-Year Loan

Money will be borrowed to help fund the Cultural Centre

Sep 12, 2024 | 1:23 PM

The funding gap for the Greater Vernon Cultural Centre is being filled.

The Regional District of North Okanagan’s Board of Directors decided Wednesday, Sept. 11, to borrow money on a short-term loan to close a funding gap needed to build the facility.

The RDNO stated the total project, including all soft costs, escalation estimates, and a contingency amount, was estimated at $46-million. The RDNO had previously secured $33-million, including a $28-million long-term loan, resulting in a $13-million gap.

The Board of Directors approved a plan to borrow that needed $13-million on a five year term.

That total will be paid back through taxation. It was estimated that the average Greater Vernon household would need to pay $85 per year for the first three years beginning in 2025, with that rate decreasing to $28 for the last two years.

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The decision to borrow the funding was made to reduce both project uncertainty and the risk of additional cost escalation. It will also provide the RDNO with more time to apply for grants and accept donations.

Kari Gares was the sole vote in opposition to borrowing the funds.

Long-term borrowing for this project had previously been approved. That total of $28-million would also be repaid through taxation, with the average household paying $57 per year over a 20 year term.