Construction is now underway on a new warehouse on Nanaimo's East Wellington Rd. for Nanaimo Loaves and Fishes Community Food Bank. (Jordan Davidson/NanaimoNewsNOW)
important project

Construction starts on new Nanaimo food bank despite funding shortfall

Dec 3, 2024 | 5:27 AM

NANAIMO — One year from now a new Nanaimo-based storage and distribution hub to feed thousands of people is slated to open.

A building permit was awarded last week and contractors were on-site Monday, Dec. 2 to start building a large new warehouse for Loaves and Fishes Community Food Bank on an open lot on East Wellington Rd., west of Bowen Rd.

Nanaimo Loaves and Fishes executive director Peter Sinclair said the project is proceeding despite no assurances capital funds from the federal government will materialize.

“Our need for a facility to serve all of the people in need is so urgent that we are moving ahead, being hopeful that the federal government will come through; but we can’t continually sit and wait and not launch this project.”

He said a $7.2 million funding request is actively being discussed with the federal government.

Sinclair said a highly undesired fallback plan involves leaning on approved construction financing.

Even with the financing, key features like a commercial kitchen, pallet racking system and generator would not be included as part of a “pared-down” project until Sinclair hopes the federal government will step in.

Sinclair said $7.2M in senior government funding would mean they can proceed mortgage-free, but if that money is absent, they’ll be in a tough position.

“If we do have a loan in place we’d be looking at mortgage payments of $25,000 a month — that would obviously be a huge challenge and strain to us as an organization and impact our ability to serve people.”

Infrastructure Canada informed NanaimoNewsNOW earlier this year that B.C. had fully allocated $3.92 billion in project funding under the Investing in Canada Infrastructure Program.

The statement encouraged Nanaimo Loaves and Fishes to stay informed of upcoming funding opportunities.

Despite the lack of funding follow-through, Sinclair said conversations at the bureaucratic and political level regarding funding their warehouse have been productive.

Sinclair noted a lobbyist is helping to push their case, noting there is widespread consensus within government that their ask is a worthy one.

“The conversations that we’re having are more at the detailed level of figuring out what particular pot of money do we need to fit into and the requirements of those particular funding sources.”

While capital funding challenges linger, Loaves and Fishes executive director Peter Sinclair is excited contractors are now building their new warehouse. (Peter Sinclair)

A significant $7 million contribution from the B.C. government was made in May 2023 toward the facility.

In late 2021 the City of Nanaimo bought the East Wellington Rd. Property for $1.3 million to lease to Loaves and Fishes to build on, while the Regional District of Nanaimo supplied about $275,000.

Earlier this year Sinclair stated the project could be in jeopardy without a funding pledge from the federal government, telling NanaimoNewsNOW their request had been increased to $7 million due to rising costs.

Despite being based out of a cramped 6,000 sq/ft warehouse, Loaves and Fishes drastically expanded its food recovery, storage and distribution in recent years.

Sinclair said their new 30,000 sq/ft warehouse will greatly enhance their ability to store more food and distribute it more efficiently.

Nanaimo Loaves and Fishes provide food to roughly 3,500 people in the Nanaimo area on a monthly basis and about 15,000 people in total throughout Vancouver Island.

The non-profit agency also distributes food weekly to several depot locations in Nanaimo and around Vancouver Island, primarily in smaller, north Island communities.

Sinclair noted they expect to source more than $10 million worth of food this year from numerous sources, including grocery stores, which is roughly 50 per cent more than pre-pandemic levels.

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Ian.holmes@pattisonmedia.com

On Twitter: @reporterholmes