By Richard Rolke - Vernon Morning Star - January 16, 2008 Morning Star
Casino cash could be pumped into a civic complex to ease the burden on Vernon taxpayers. Some city councillors are suggesting additional revenue from an expanded Lake City Casinos should be directed towards construction of the $32 million civic complex. “The major issue that seems to come up is the cost,” said Coun. Patrick Nicol. On Jan. 26, residents will be asked to approve borrowing up to $30 million over 25 years for a civic building. A larger Lake City Casinos outlet is expected to open in Vernon later this year. The number of slot machines will go from 210 to 400. Under provincial rules, the city receives 10 per cent of casino revenue or about $1.8 million. It’s anticipated that figure will climb once the new casino is open. “This is money coming our way that we could apply to the complex,” said Nicol.
Presently, the borrowing of $30 million for a civic complex could lead to an extra $55.86 a year in taxes for a home assessed at $400,000. City staff state, though, that the application of $250,000 in casino revenue could bring the tax increase down to $40.64 annually. If $500,000 was used, it would be $25.42 annually, and the impact would be $10.20 a year if $750,000 in casino money was applied to the project. “I think it’s a worthy application for it,” said Nicol of the casino funds. The concept is also being pushed by Coun. Jack Gilroy, who recently attended a meeting of the Vernon Taxpayers Association. “Their greatest concern is the cost to the taxpayer. If we take casino funds to take down the cost, I can support it,” he said. However, Coun. Barry Beardsell is opposed, saying casino revenue is supposed to be used for infrastructure enhancements. “It’s just taking money out of one pocket and putting it into another,” he said of Nicol’s proposal.That brought a sharp response from Gilroy, who classifies the civic complex as infrastructure because it will include offices for city staff and the RCMP. “If we can’t put our people somewhere, it all breaks down,” he said.
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Casino Idea Worth Studying Jan 16 Editorial
With an expanded casino on the horizon later this year, the City of Vernon is anticipating additional revenue pumping into its coffers. And as a result, officials are looking at ways to spend the cash. One notion proposed by Coun. Patrick Nicol Monday is to take some of the extra casino cash and put it towards the proposed civic complex. And if residents vote Jan. 26 to borrow funds for the project, it makes sense for the city to investigate that concept further. Apparently applying $750,000 annually in casino money towards the complex would reduce the tax hit on a $400,000 home from $55.86 a year to $10.20. Such a move would certainly benefit taxpayers who have been hit hard in recent years by water and sewer upgrades, as well as new recreational facilities.
But the timing of Nicol’s proposal is dubious. With the referendum a week away, one could suggest that Nicol is trying to influence the vote. He has also suggested that most residents are only concerned about the cost of the civic complex. That certainly is a factor, but others also question the need for a new library, the location of the complex, the lack of an agreement with Greater Vernon Services over the art gallery and the lack of a purchase/rental agreement with Okanagan Regional Library. It should also be pointed out that casino money has traditionally gone to infrastructure. Will siphoning off some of that cash for a civic complex leave potholes unattended, or is there enough money to spread around?In the end, though, Nicol’s proposal has some merit and bears further review. But that should only happen if the public gives its blessing to the civic complex Jan. 26.
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