Riverview Town Council has defeated a motion to withdraw from the cost-sharing agreement for the new RCMP facility.
Moved by Coun. Cecile Cassista, the resolution cited the increased cost and a lack of transparency around making those costs public as a point of concern.
Originally estimated at $42 million, the facility’s cost increased to $46 million before factors related to the pandemic caused it to jump to $57 million.
The resolution included that Riverview will have signed on to a thirty-year agreement at substantial cost yearly of leasing well over $600.000 in rental fees, in addition to its servicing cost of more than $4 million to the Codiac Regional Policing Authority.
A cost-sharing agreement signed by representatives from the City of Moncton, The Town of Riverview and The City of Dieppe states Moncton will own and manage the detachment, with capital and future operating costs shared with the other municipalities. Furthermore that Moncton will manage the overall construction of the detachment.
Colin Smith, the Chief Administrative Officer for the Town of Riverview, addressed many of the points in the resolution.
After discussions with lawyers, Smith determined withdrawing from the station would act as a breach of contract. The consequences would be that Riverview still has to pay rent on the facility, and any future equity would be forfeited.
Additional funds were stashed in operation reserves in 2019 and 2020 to prepare for the transition from the current facility to its successor.
Smith said the estimated rent has only risen by about $4,700, and the new rent comes in around $606,000. Though the overall cost is important, from the Town of Riverview perspective, the question should be what is the rent, said Smith.
The motion failed with the two votes in favour coming from Coun. Cecile Cassista and Coun. Russell Hayward.
