Frequently Asked Questions

The Lake Country Co-op Leisure Centre is on 25 acres of serviced land South East of the Marquis and 6th Avenue East Intersection. It is part of The Yard, an 80-acre development by locally owned Signature Development Corporation.

The location selected for this facility was part of a larger vision for a commercial district that would attract new investment (and new taxation revenue streams for the City) and serve as a hub of recreation and entertainment services for residents and visitors. The new recreation facility will add to our City's capacity to host more events and offer modern facilities for all that attend sporting events in Prince Albert.

See below for more details on the land purchase, the cost of the facility and how the City plans to pay for it.

Location

What was included in the land purchase for the new aquatic/twin pad arena project?

In total, the City purchased 25 acres of land at an average of $362,500 per acre. Included in this land purchase, the City received land with the following services:

Lot cleared, graded, and clean fill brought in, ready to build on.
City water service, sanitary sewer, storm sewer, service tie-ins.
Road construction, sidewalks, curbs, and lighting.
Relocation of power line previously running through property.
Widening of Highway 3 and Marquis Road, adjacent to site.
2 Traffic light controlled intersections leading into property.
2 additional right-in/right-out intersections leading into property.
Sask Energy, Sask Power, SaskTel and Shaw Cable leading to site.
Approximately $1,000,000 in development levy fees will be returned to the City over next 3 years.
Additional $45,000 per additional acre developed in “the yard” district will be returned to the City.

What was included in the R.M. of Prince Albert purchase of land for their new building and commercial development?

The R.M. of Prince Albert Administration have confirmed that their land purchase was for raw agricultural land only. Any additional work or services such as grading, site prep, servicing, etc. comes at a significant cost to the RM, which is above and beyond the initial purchase price. This land was also zoned for agricultural use at the time of purchase.

What are the subdivided parcels of land in “The Yard District” currently being sold for?

The “Yard District” is a private commercial development with lands for sale with asking prices in excess of $500,000 per acre.

When was this land purchase approved by City Council?

The purchase of the original 18 acres was approved at a public meeting of City Council on June 29, 2020. A subsequent purchase of an additional 7 acres of land was approved at a public meeting of City Council on May 20, 2021.

Did the City have this location in mind all along?

Yes, the location was identified in the funding application through the Canada Infrastructure Program. The vision for the facility was to make it an anchor for future complimentary developments such as hotels and restaurants to support residents and visitors using the facility for tournaments and family activities.

Saskatchewan Tourism estimates that on average a provincial sports event can result in approximately $115 spent per visitor, per day. This spending supports new and existing local businesses including restaurants, entertainment facilities, gas stations and hotels. These businesses in turn contribute property taxes which the City uses to support city amenities and services for residents.

No other location in Prince Albert provided the future development envisioned for this facility.

Project Cost and Financing

What is the construction cost of this facility and how much is the City planning to borrow for this facility?

Bid prices received for the construction were 35% above the pre-tender estimate for the facility with the total project budget coming in at total cost of $113.8 million. A revised funding plan for the facility has been approved which accounts for the rising costs due to inflationary pressures.

Total borrowing for the new facility is $46 million.

Did City Council consider not proceeding with the project given the rise in costs?

Yes, consideration was given to postponing the construction of the facility, however, City Council ultimately decided to proceed with the project given the following:

the costs of construction only continues to rise which means any future construction will be even more;
it would have put the $44 million in grant funding at risk,
without the facility, further development would have been put at risk delaying future property taxation for the City and additional revenue for local businesses that will benefit from visitors that spend while attending the facility for tournaments and family activities; and
residents would have to continue to rely on aging facilities for swimming and hockey programming (current facilities are 40-50 years old).

What is the repayment timeline for the borrowing?

The repayment schedule for the $46 million is 35 years. The taxation revenue generated from the Yard Development and the Civic Facilities Reserve will provide the necessary revenues for the annual interest and principle payments

How much additional revenue is expected from the Yard District?

The Yard District has a number of lots sold and development is underway. The taxation revenue generated from a property varies depending on the characteristics of the property. The following are examples of the municipal share of taxation revenue that could be generated each year from the types of business that are expected to be located in the area:

Hotel: $230,000
Car Dealership: $180,000
Fast Food Restaurant: $50,000
Strip Mall: $90,000

What is the City's current debt?

As of December 31, 2021, Prince Albert's debt was $21 million with a number of projects set to be paid off in the next few years. The City's approved debt limit in 2022 (the amount Prince Albert is pre-approved to borrow by the Ministry of Government Relations) is $120 million. Prince Albert's debt changes year to year as new projects are undertaken and past projects are paid off.

We publish a detailed listing of debt and the projects associated with that debt each year in our Annual Report.

The below table shows the City's debt compared to the current approved debt limit. For full details, see page 48-50 the 2023 Annual Report

Chart showing City of PA debt

How does the City of Prince Albert's debt limit compare to other cities?

With the increase to the City's debt limit to $120,000,000, the City of Prince Albert will be ranked #6 for debt limit per Capita when compared to 12 other Saskatchewan municipalities.

The City has said taxes will not go up to fund this facility, how can that be?

The revised funding plan continues to include no increase in property taxes to fund the new facility. This is achieved through the following measures:

Reducing the build costs by $7 million by modifying non-functional elements;
Increasing borrowing by $30 million for a total borrowing of $46 million;
Securing $24 million in external dollars through provincial and federal funding and fundraising initiatives; and
Annual financing payments through the Civic Facilities Reserve and targeting property tax revenues from the Yard Development.

The taxation revenue generated from the Yard Development will provide the necessary revenues to cover the increase in annual interest and principle payments for borrowing the additional $30 million.

Artificial Ice Surfaces in Prince Albert

With the opening of the two new arenas, does the City plan to close the Kinsmen or Steuart Arena?

The Kinsmen Arena will remain open following the opening of the Centre. The Steuart Arena will be closed.

Recreational Programing at the new Aquatic and Arenas Facility

Aquatic Programming

After the construction of the Centre is finalized, all swimming-related programs offered by the City will be shifted to the new facility. This transition will enable a broader range of programs to be available, catering to a more diverse audience and providing increased opportunities for participation.