$10.5m of borrowing locked in for new Nanaimo public works yard

City general manager of corporate services Laura Mercer said Monday night this amount is a draw on the total figure, which they’ve already been approved for.

“We would look at doing this once a year, so next fall we would go for the borrowing again. It would come in the spring, but it would be a fall borrowing.”

It means interest is not accrued on the full amount, only after it has been withdrawn.

Once debt servicing costs are taken into account, it’s expected the project will cost taxpayers close to $126 million.

The fleet maintenance building is slated to be a single, 2,300 square metre floor, with around 400 square metres of mezzanine for ancillary rooms like a lunchroom or washrooms.

It will be a pre-engineered building to reduce costs, and existing fleet maintenance equipment, such as lifts, hoists, and other equipment, will be reused.

New administrative officers will provide workspace for well over 200 City staff who work out of the facility regularly, with the new build capable of accommodating up to 263, with extra space included for potential future growth.

Both buildings will be built to continue operating during a post-disaster emergency, and can be used as an alternative emergency operations centre.

Regional District of Nanaimo directors will be asked for their consent on June 15, a required step to borrow money through the Municipal Finance Authority.

Money will be borrowed over a 20-year term.

Mercer said this project, while adding to the City’s borrowing load, does not significantly affect their ability to use the MFA for future capital projects in the short term.

“For our borrowing limit, it looks at the total amount we’ve been allowed to borrow. The [approximately] $76 million, that’s already been taken into account because we’ve been approved for that. When they calculate how much room we have left, they’ve already taken into account the full amount. We have lots of room left.”

Coun. Tyler Brown was the lone member of Council to vote against the borrowing bylaw Monday night.

He also voted down the February 2026 budget increase, saying at the time he wasn’t convinced on the current direction.

“I have not been provided with the information where I have confidence in those that have scoped the project, and as a decision maker for this time of expense of $125M over a 20-year period, I don’t have confidence to vote in favour of this. I wish I did, I wish I had been provided that confidence, but over three, four years now, I have not.”

Project history

After three failed attempts to obtain elector approval in 2023 and 2024 for financing, the City paused project planning to determine its next steps.

However, due to provincial legislation changes in July 2025 regarding liabilities municipalities may incur, such as leases and debt to fund services, electoral approval is not required for the City to borrow over $76M.

The report said electoral approval is not required if “the total annual cost of servicing liabilities is within 10 per cent of controllable and sustainable municipal revenues.”

The City recorded a 2024 sustainable and controllable revenue of $246.8M, putting the 10 per cent approval-free liability threshold at $24.7M.

We’re on Bluesky! Stay up to date on news across central Vancouver Island through Bluesky, by following @NanaimoNewsNOW.bsky.social.

info@nanaimonewsnow.com

Follow us on: Twitter (X) | Bluesky | Facebook

by Alex Rawnsley

$10.5m of borrowing locked in for new Nanaimo public works yard

More Local News