Riverview won't back out of Codiac RCMP building cost-sharing agreement
Staff say 2019 agreement would require town to pay even if it withdrew
Riverview won't withdraw from a 30-year cost-sharing agreement with Dieppe and Moncton for a new Codiac Regional RCMP station.
Riverview council voted down a resolution from Coun. Cecile Cassista during a committee meeting Monday night.
Colin Smith, the town's chief administrative officer, told councillors he reviewed the 2019 agreement with a lawyer and they believe the municipality would still be required to pay its share even if it backed out.
"That agreement has been signed, we're locked into it, we're paying that money regardless of what happens here tonight," Mayor Andrew LeBlanc said at one point during the discussion.
Under the agreement previously not publicly available, Riverview will pay about $606,000 annually in rent for the building in Moncton. Town staff told councillors that's up by about $4,700 from what the town had previously expected.
The rental cost has increased because the estimated cost to build the facility has climbed from $46 million to $57.2 million.
Moncton is leading the effort to build the new station in partnership with Riverview and Dieppe, which are policed by the Codiac RCMP.
Moncton will be borrowing the money for the project with Dieppe and Riverview paying their share through rent.
Moncton councillors voted 7-4 last month to go ahead with issuing a construction tender and to seek increased borrowing authority, given the new cost estimate.
Cassista cited the rising cost as a reason for her motion. She said the true cost to the town won't be clear until a construction tender comes back. That's expected early in 2022.
Cassista said also she believed there needs to be more transparency around the project and its costs to town taxpayers. She said too much has been discussed in meetings with Dieppe and Moncton, called tri-community council meetings, that are closed to the public.
Smith said Riverview has been setting aside money in previous budgets in anticipation of paying rent for the new building.
Robert Higson, the town's director of finance, said lower interest rates have helped offset the impact of the overall cost of the new building.
"That's why the overall rent factor hasn't changed from two years ago," Higson told councillors.
Several Riverview councillors said Monday they would still be paying the costs and withdrawing would likely harm the town's relationship with neighbouring Moncton and Dieppe.
"We've made a commitment to the city of Moncton and Dieppe, and withdrawing would have a lot more consequences beyond financial," Coun. Sarah Murphy said.
Coun. Wayne Bennett called it a "no-brainer" decision.
"I'm really even surprised to see this motion on the table here tonight for us for discussion," Bennett said, adding he believes the town has been fully transparent about the project in recent years.
Moncton purchased land in the city on Albert Street for the new station in 2019.
The building is meant to replace the police station on Main Street built in the 1970s. RCMP have said the current building no longer meets the force's standards, is too small and considered unsafe.
Riverview already pays rent for that building. Its rental costs would rise about $450,000 with the new station.
Moncton council is expected to consider whether to award a construction contract in January. The building is expected to be ready for use in 2024.