BREAKING NEWS
CK’s own CFO previously supported renovating the Civic Centre
… Chatham-Kent’s Chief Financial Officer States …
“I highly recommended council repair the current building as the most cost effective option in the past on multiple occasions. Past councils certainly created today’s situation”
Source: text communications from Chatham-Kent’s chief Financial officer to a constituent April 19, 2025
Presented By "The Chatham-Kent Watchdogs Group"
Email Watchdogs: [email protected]
S.O.C.C.A.T. SaveOurCivicCentreAndTaxes
The Chatham-Kent Watchdogs are a group of Chatham-Kent citizens and volunteers concerned about municipal taxation and spending. The recent decisions of Council will serve to drive up the property taxes of every C-K resident. These decisions are being made despite the strong opposition from citizens of the urgent need for Council to reign back spending and focus on fiscal responsibility. Pertaining to the Sears HUB, evidence supports that the Municipality of Chatham-Kent has not been fully transparent or thorough regarding the total costs associated with this project. It appears that a strong bias supporting the purchase and renovation of the Sears HUB has existed from the start. Email Us [email protected]
WE GET TAX REVENUE IF THE HUB REMAINS PRIVATELY OWNED
If the HUB remains in private hands CK citizens would benefit further from tax revenues generated from the HUB by commercial enterprise. There would be NO TAX REVENUE generated if municipal Hall moves to the HUB (Sears Building)
$3 MILLION PAID BACK TO YOU!!
If council votes NO to the HUB, the HUB owners are required to return our nearly $3M Paid for the HUB (Sears Building) a building valued at only $630,000 The nearly $3M we would get back represents a one-time tax reduction of nearly 1.5%
NO $12M SAVINGS BY USING THE SEARS BUILDING (HUB)
CK described $11,738,340 could be saved by using the Sears building. CK neglected to explain this savings was only if we had to build the Sears Store from scratch. Using a similar analogy (which CK failed to do) $36M could be saved by not having to rebuild the Civic Centre from scratch. Bias favoring the Sears appears to continue.
$72.1 Million HUB vs $4.01M Civic Centre
The HUB up front cost has been well promoted at $53M. CK has failed to promote such does not include costs to maintain a much larger building, each year at $1M, annual lifecycle renewal costs at $900,000 yearly, financing $800,000 every year, HUB development costs before we start to build of $7-$10 million, building a new fire hall should the Civic Centre move ($12 to $20 million) a 2.1% (about $1.7M) added due to tariffs = $85M,764,000 for the HUB. Estimate ordered by CK for the civic centre (CK should have had the same estimator for the Hub as well) was $37M
1. leaving council chambers where it is saves $10M (about 5% one-time tax increase), bringing the Civic Centre renovations costs to $27M.
2. Council spent nearly $10M just to study the HUB. Had this money not been spent such could have been put toward the Civic centre, bringing the Civic Centre tax investment to $17M.
3. CK had put up to $10M aside in reserves to renovate the Civic Centre. This money was re-directed to the HUB. If that money was put toward our current municipal hall, our taxpayer investment for our current municipal hall would have been reduced to $7M.
4. If we say No to the HUB municipal statements confirm we get our $2.95M (1.47% one time tax savings) paid for the Sears building back. We know this is a bit of a play with figures but using a responsible investment management system and further subtracting $2.95M from the above $7M – we could have used only about $4M in tax dollars to renovate the civic centre instead of going thru all this HUB thing. Imagine the endless hours, per hour paid our administrative staff working on the HUB project, something that should never have been considered in the first place.
Interesting Perhaps Shocking Facts
FIRST, the HUB will add 41,118 sq. ft. of new real estate to the Municipality building size. To put this in perspective, this is equivalent to building “2” new Chatham Libraries. The Mayor has publicly stated that “Our taxes are not changing because of this project.” This is false information! Administration has identified “new” incremental or accumulation costs associated with the HUB related to operations, maintenance, and staffing that total over $1M per year as a result of the increase in the Municipal building size by moving to the HUB. Imagine increasing the size of your home by 50%, and then believe there will be no added costs to your monthly house budget? This is exactly what the Mayor is stating to C-K residents. $1M per year will equate to a one-time 0.5% increase in your property taxes, and we will all pay for this increase every year as long as you own your property.
SECOND, Administration has not identified the incremental (accumulating) tax increases in building renewal costs associated with the HUBs larger building size. This is estimated to be $900,000 per year. Per Ontario legislation O. Reg. 558/17, Chatham-Kent is obligated to define the levels of service that can be provided to the public within the available budget. The required refurbishing costs for the HUB has not been disclosed to the public. Refurbishing (lifecycle\restoration) costs will add another one-time 0.45% ($900,000) increase in taxes.
THIRD, the Mayor has advised that “we have saved money over time.” An on-line financial report reflects that only $25M could have paid for the civic centre, not the $53M required for the HUB. A 20-year debenture of $17M is necessary to fund the $53M HUB estimate. New taxes will be required to pay for the interest payments. At 4.5% interest rate, this debenture will cost tax payers $1.3M per year x 20 years.
FOURTH, the original HUB costing used estimates provided by the former owners of the Sears building describes a renovation rate of $444/sq. ft. ($53M in total for 119,278 sq. ft. of space). A renovation rate of $850/sq. ft was used for the Civic Centre and provided by local architects ($37M in total for 43,500 sq. ft). This data represents a significant financial bias favoring the Sears HUB as both buildings were built around the same time period (1977). Detailed costs of the Civic Centre were posted on-line. Detailed costs of the HUB have been secretly kept from Council and the public. One would expect that the renovation rates to be very similar, and logically, the current Civic Centre to be less costly as it already functions as a Municipal office building.
FIFTH, the business case to date has only focused on up-front capital costs ($53M HUB). As noted in the first two points, on-going cost increases (maintenance, operations, staffing, financing and renewal) related to the building size increase for the hub, have been ignored. The capital cost ($53M) business case is further contingent on the sale of the Civic Centre and Chatham Library valued at $9.4 M, two properties whose sale is regarded as highly risky.
SIXTH, Council approved an increase in size of the Chatham Library from 22,960 sq. ft. to 35,000 sq. ft. without requesting a report on the associated costs to do so. The HUB further increases the Library size to 43,569 sq. ft. The 35,000 sq. ft. was a recommendation of a 2008 Library Master Plan based on guidelines published by the Ontario Library Association. The Chatham-Kent Public Library Board published a document in Sep/23 stating “Revitalizing the main Chatham branch of the CKPL in its current location, is the clear choice for the Library” when asked about a move to the Sears HUB. The increase in size has not been based on the demands of the Chatham-Kent public. The role of Libraries has changed significantly since 2008 due to technology.
Tax Increases Associated with the HUB (A)
Let’s summarize the financial implications associated with the Sears HUB that have not been identified to date in the $53M estimate. A project of this magnitude comprises both a) up-front investment and b) on-going “new” costs (new taxes) due to the significant increase in the size of the HUB compared to current Municipal building sizes:
a) Up-front Investment Summary: HUB versus Civic Centre
b) The on-going “new” costs and tax increases resulting from the HUB:
And let’s not forget about the tax increases required to maintain C-K’s current services:
We have some serious financial problems that exist in Chatham-Kent. A new 119,000 sq. ft. facility (the Sears HUB) is new real estate and simply means NEW taxes. We have a good municipal hall and firehall, a nice library, cultural centre/museum. Let’s do the responsible thing and fix up what we have!!
Click Here to send a “No Hub” vote to council
TARIFFS ADD $1.76M TO HUB COSTS
Our 1st Thank you goes to AMO (Association of Municipalities of Ontario) researching the significant impact on Ontario municipalities from tariffs. AMO estimates 2.1% can be added to the costs of municipal capital projects, due to tariffs. With a total HUB cost of about $84M (see charts (A) (B), we could add another $1,764,000 to the HUB project or nearly a 1% one-time tax hike. Total HUB Costs estimated to be Nearly $86M
A Quick Click to Send a “No to the Hub” Vote
A vote will take place on May 12, 2025 that will determine if the project will continue or NOT. We strongly encourage every citizen to review this information presented. Further, please attend the May 12 Council meeting and/or actively engage with your Councillor to ensure they understand your position on this critical decision. ……click on the green button below to council to say “NO” – Stop! the HUB and save our taxes
The “Bigger” Picture:
The Mayor and Council continue to ignore a $407M shortfall identified by Administration required to sustain “non-core services ( Police, Fire, Ambulance, Public Health, Riverview Gardens, Social Housing, Libraries, Recreation, Arenas, Parks, Transit and Waste Management). Over a 10 Year period, this equates to an annual tax increase of $40.7M per year, or a one-time tax increase of 20%. There has been no plan to address this major problem that exists in C-K. Either services must be cut or a significant tax increase will be required to maintain our current services. By ignoring this issue, Council is effectively pushing the problem down the road to future generations. A report on Core Assets ( Roads, Bridges & Culverts, Stormwater, Water and Wastewater) is forthcoming in 2025, where the current $407M shortfall is expected to “expand considerably.” Essentially, the $40.7M required per year for the next 10 years is understated. The funding shortfall on current services is actually much worse! Based on this major issue, CK having no viable solution in place, why is Council considering expanding our Municipal building size and services by 41,118 sq. ft.? Does this make any sense? Moving forward with the HUB will serve to further increase the $407M shortfall.
Why is the Hub Quote $444 and the Civic Centre $850.00
Councillor Bondy put forward a motion requesting an explanation of the discrepancy as to why the HUB (Sears building) renovations were costed at only $444 per sq. ft.to rebuild having only a shell of a building and the Civic centre was costed at $850 per sq. ft. to renovate having the Civic Centre being a completed building. Municipal staff wouldn’t answer Councillor Bondy other than saying the motion was a duplicate request from a motion passed I October 2024. After reviewing records it’s evident administration’s statement was incorrect. In the past administration would come to the council podium to explain – not this time! – WONDER WHY!
$10M Already Spent just on Investigating the HUB
CK and council have already spent $7 – $10M (about 5% one time tax hike) just to investigate the HUB (Sears building) (we have receipts) This does not include senior staff hourly wage (up to $154.00 per hour x the number of staff hours tied up in the hub project.
$13M Saved by Renovating Civic Centre (or one-time tax hike of 6.5%)
Council’s decision to proceed with the HUB (Sears building) has not addressed the status of the Chatham # 1 Firehall located adjacent to the Civic centre. Renovating the firehall at its current location has been estimated at $6.8M. Should the HUB (Sears Building) project move forward a new firehall has been estimated up to $20 million tax dollars – a one- time tax hike of about 10%. This cost has not been presented to the public
YOU Have A Strong Voice Against the HUB
We want council to VOTE….
NO TO THE HUB……. STOP! the HUB ….. “Save our Civic Centre”
Chatham-Kent is Hiding Information on the Sears HUB
…..If you think we’re getting all the financial facts on the Sears HUB? Consider this:
1. C-K hired a local architectural firm to conduct a building condition assessment on the existing Civic Centre and Firehall #1 (located adjacent to the Civic Centre). A team of Civil, Structural, Mechanical and Electrical Engineers conducted a detailed assessment of each building and presented their findings in a 95 page public document that included the following renovation cost estimates:
a. Civic Centre: $27.7M
b. Firehall #1: $6.8M
c. Civic Centre with Council Chambers moved to the first floor: $37.2M
2. In the case of the Sears HUB, there was no detailed cost breakdown provided to Council or the public. A cost estimate of $53M for the Sears HUB Phase 1 renovation is noted in a report to Council. The report is quoted as follows “…a detailed cost breakdown compiled by a third-party construction management firm submitted by the Investor Group of approximately $35,000,000 excluding HST for the general construction of Phase I. Administration’s project estimate of $53,000,000 also included taxes less rebate, land purchase price, architectural and engineering consultation, contract administration, 15% contingency, and 15% material and labour escalation factoring inflation.”
(a) CK Watchdogs requests to Administration to release the Sears HUB detailed cost breakdown was declined.
(b) In response, the CK Watchdogs filed a Freedom of Information Request (FOIR) asking for the release of the detailed cost breakdown.
(c) As noted in the report, figures presented by Administration were based on information received by the Investor Group, (current owners of the Sears building) at the time who were trying to sell the building to the Municipality – a clear conflict of interest.
3. After numerous delays, the CK Watchdogs received an 8-page cost breakdown of the Sears HUB renovation costs.
(a) There is not a single reference in the documentation to the $53M total estimate or the $35M figure provided by the Investor Group.
(b) A breakdown of $25.0M was provided for a new shell cost. This is the cost to build a completely new structure. A reference to $13.2M is also provided which is the shell cost if the existing structure is used.
(c) There were no costs included in the cost breakdown to create a functioning office, which requires significant investments in mechanical, electrical, finishings, interior walls and furniture.
Implications to the Taxpayer
1. Administration’s response to the FOIR indicates that there is no formal costing that exists on the Sears HUB. The only record of the $53M total is the statement in the report.
(a) This lack of thoroughness, on the single largest investment project in C-K history, is completely irresponsible.
2. With the estimates that were provided, the HUB renovation was priced out at $444/sq. ft. ($53M total for 119,278 sq. ft.) and the Civic Centre was priced at $850 sq. ft. ($37M total for 43,500 sq. ft.).
(a) A motion by Councillor Bondy to provide a public explanation of the significant discrepancy between the building estimates was overturned by Administration.
(b) One would expect the current Civic Centre, which already serves as a Municipal building, would be less than the cost to renovate the Sears HUB, a former department store. Instead, Administration’s position is that the existing Civic Centre will cost almost twice the amount to renovate on a square foot basis compared to the Sears HUB.
3. Based on this data presented, Council has since authorized between $7M – $10M ( about 4% tax hike for one year) of taxpayer dollars to spend on the Sears HUB just to investigate its viability.
In conjunction with all of the other false information that has been communicated to the public that has been identified in this website (for example, “no new taxes”), the above information should be very alarming to both Council and the public.