City of Nanaimo AAP to borrow $90 million for Public Works Yard fails

According to the City of Nanaimo, 8,655 valid response forms were received by the deadline. Photo: Lauryn Mackenzie / CHLY 101.7 fm

After three attempts by the City of Nanaimo to seek the consent of the voters to borrow funds to upgrade its Public Works Yard, the city’s third AAP has been denied.

This comes after two failed attempts due to administrative errors, in the fall of 2023 and winter of 2024, for the Alternative Approval Process, or AAP. This AAP was meant to seek voters' consent to borrow $90 million to upgrade the aging Public Works Yard.

The Public Works Yard maintains the City’s water, sewer, and drainage systems, and roads and transportation network. It also provides garbage collection and snow removal for the city of Nanaimo.

The City originally was looking to borrow $48.5 million for the first phase of a four-phase project with later borrowing needs, but then opted for a “one and done” plan after the two failed attempts at an AAP. The new plan would have a higher borrowing need at $90 million but would have no anticipated future borrowing to complete the remaining phases of the facility.

Municipalities that want to take out substantial long-term loans are required by the Province to either seek the consent of the voters through a referendum, or an AAP. This AAP started on September 18, 2024, with 42 days to submit the response forms, before the cutoff date on October 31.

For the borrowing to be denied, 10 per cent of the voting population or 7,974 or more eligible voters submitted forms opposed.

According to the City of Nanaimo, 8,655 valid response forms were received by the deadline–681 votes over the minimum required to stop the borrowing.

With this result, Nanaimo City Council will now be presented with options on how to proceed with the upgrades at its next council meeting on Monday, December 2. 

Currently, on the revised agenda for the council meeting, there are two options council can consider: have staff report back with alternative ways to complete the project, and abandon the Public Works Yard upgrades borrowing bylaw,or proceed with a referendum to seek elector approval for the borrowing.

CHLY will be following the story as it develops.

Funding Note: This story was produced with funding support from the Local Journalism Initiative, administered by the Community Radio Fund of Canada.