The City of New Westminster will be saving a sizable chunk of change on its ambitious Westminster Pier Park project following the city's approval for a low-cost loan from the federal government.
Alice Wong, minister of state for seniors, made the announcement atop the Front Street parkade, overlooking the park on Monday.
Under the municipal infrastructure lending Program, the city will borrow $6.3 million towards its one-third share of Westminster Pier Park. Provincial and federal grants will cover the rest of the $25.1-million project.
The government loan means the city can borrow at about 3.5 per cent interest, fixed, over 15 years. Had the loan not been approved, the city would have had to borrow from the Municipal Finance Authority at a higher rate.
"At 15 years, I think it would have cost us an additional $420,000 if we went through MFA," said Gary Holowatiuk, the city's director of finance.
A similar loan from a private bank would likely run double that amount, Mayor Wayne Wright said.
"It shows that we do business in the right way. We're very aware of how hard it is to earn money and how hard it is for our taxpayers and we're going to save in every place we can," Wright said.
The city is seeking the remaining $2 million from a similar low-cost loan program offered by the Federation of Canadian Municipalities.
The city purchased the abandoned industrial brownfield site on the waterfront between Sixth and Elliott streets, where construction is nearly done, in 2009 for $8 million.
The park, on schedule for its grand opening in September, will connect to the existing Quayside esplanade and have pathways, a large gathering space, a building that includes a concession and washrooms, grassy areas, lookout points and bridges that provide views of the water, an elevated viewing, and two children's playgrounds.
"This is more than just a park. Wright said. "People in New Westminster are going to be living downtown and to live downtown, they have no backyard or front yard. They need space. They need a place to teach their children how to ride a bicycle or roller-skate or play floor hockey. This is what they need and this is what we're going to get."
Wong said the park is just what the federal government had in mind for "smart, targeted investments that improve sustainability and prepare communities for future growth."
"This is a great example of how the municipal infrastructure lending program is improving community infrastructure while putting Canadians to work," Wong said.
