Loaves and Fishes Community Food Bank has asked the prime minister for $7.2 million for its new warehouse, but in the meantime, the non-profit is hoping the City of Nanaimo can cover building permit fees.
The request was made by Peter Sinclair, the food bank’s executive director, at a city finance meeting Wednesday, Sept. 25.
In his presentation, Sinclair thanked and reminded council members and staff about the support the food bank has received from the City of Nanaimo and Regional District of Nanaimo over the years. The city bought the land at 1861 East Wellington Rd. and leased it to Loaves and Fishes to build its new warehouse and distribution centre and the Regional District of Nanaimo provided $273,000 to help with design and development costs. Last year the province pledged $7 million and the city issued a development permit for the site.
“We have contractors in place, ready to go, and construction will start immediately when we receive the building permit,” Sinclair said.
But more money is needed. Sinclair said $5.7-7.2 million is still needed to complete the project. The lower figure would allow for construction of the building’s shell and an operational warehouse, but $7.2 million would allow the organization to outfit it with a full- scale commercial kitchen, a backup power generation system and a pallet racking storage system and have the operation “fully complete and fully operational.”
Sinclair said Loaves and Fishes has engaged with the federal government, retained a lobbyist and is working directly with Sean Fraser, federal minister of housing, infrastructure and communities. Sinclair said Loaves and Fishes anticipated meeting Fraser directly when the Liberal party caucus came to Nanaimo in the second week of September, but due to medical reasons, the minister wasn't available.
“But fortunately, I coach at the Nanaimo Track and Field Club – Justin Trudeau made an appearance at the track club," Sinclair said. "It was joked that I should race him in an 800-metre and the winner would agree to cover the $7.2 million.”
He said he took the opportunity to pitch the funding request directly to the prime minister.
“When I made the request, he was fully engaged, we got direct contact to his director of operations, so I remain hopeful that they will fund that,” Sinclair said.
Loaves and Fishes has a $5.7-million construction loan secured through a credit union to start the project, but if the feds don’t come through with $7.2 million, Sinclair asked if the city would waive or cover the building permit fee and a service contribution agreement fee related to East Wellington Road.
“I know the City of Nanaimo has done a lot for Loaves and Fishes, so this is an additional ask,” Sinclair said. “Why? Because at the end of the 30-year lease the City of Nanaimo is going to own this facility. It will also help us reduce the mortgage payments, because a $5.7-million mortgage is going to have a significant monthly payment.”
Coun. Hilary Eastmure asked city staff if a report could be produced reflecting the potential cost of the request, and Jeremy Holm, director of planning and development, replied that the cost of the building permit fee is roughly $63,000 and the value of the works and services cost-sharing agreement is slightly more than $54,000.
Sinclair said his intention is to not let the report nor the wait for a reply to the funding request from the federal government hold up start of construction and Loaves and Fishes would pay the fees when the building permit is issued.
“Our hope would be that we do get the funding from the federal government and, in the event that it doesn’t come through and that we are accessing the mortgage to complete it, then we would be seeking a refund from the City of Nanaimo … Our intention is to keep this moving and assume a refund would happen,” he said.
The motion to have city staff return to council with a report passed unanimously.
