A major political rift has developed in Chatham-Kent (CK) as the sitting mayor is accusing his mayoral opponent of spreading misinformation surrounding the CK Hub.
Mayor Darrin Canniff emailed the media on Tuesday, saying that mayoral candidate Michael Bondy doesn't know what he's talking about when it comes to the hub, adding that his budget numbers are inaccurate and misleading.
Canniff strongly disputes Bondy's numbers, saying the project's price tag is $52.8 million, "full stop", and it's irresponsible for Bondy to say otherwise.
"Already, Rob Myers (Chatham millionaire and philanthropist) has kicked in $5 million towards it to go into a trust fund. There will be more money coming in for sponsorships to help cover the costs. In my mind, it will come in well under the $52.8 million," said Canniff.
The mayor said Bondy's statement, indicating that the project will cost between $90 and $100 million, is false, misleading, and an attack on the credibility and integrity of Council, staff, and consultants.
Bondy, a long-term councillor, firmly believes the final price tag for the hub will be closer to $100 million when a new fire hall to replace the current one attached to the existing Civic Centre is factored in.
Bondy told CK News Today in his "opinion", the numbers don't add up, adding that projects usually don't come in on budget.
"Colour me purple if this thing comes in at budget or under, but I really highly doubt it," Bondy mused.
Canniff insists that the project’s capital budget includes all construction costs, contingencies, and procurements within the $52.8 million, adding that claims of hidden costs, undisclosed interest, or a “blank cheque” are also false.
"It has been explained to Councillor Bondy several times in open session and through reports that all contingencies ($7.1 million in this case) are built into the $52.8 million budget, yet he still fails to grasp the concept," said the mayor.
Mayor Canniff said the debenture for this project will not be issued until 2028–2029, after the sale of surplus properties, receipt of donations, and release of unused contingencies, meaning no tax increase is required because these repayments will be funded through the existing Facility Replacement budget.
"I'm stunned to hear that a $53 million project doesn't have a tax impact. That's incredible. That is magic, and I want the formula," Bondy replied.
The mayor also stressed that the hub project has been subject to extensive due diligence by both external and internal professionals, including engineers, accountants, lawyers, architects and more and is confident that the process has allowed the municipality to "forecast" with a "high degree of accuracy" that the hub will come in at or below the $52.8 million budget.
"[Bondy's] statement that the contract has no spending cap is incorrect. This project is being executed under a fixed-price contract," Canniff said. "The tender award was conducted under strict municipal procurement rules. Any costs beyond the awarded amount would require Council approval through a public report."
Bondy noted no buildings have been sold, and the municipality can't bank on that. He is also concerned that his motion to cap the hub's price tag was rejected, adding that it sends red flags about the hub's budget.
"The mayor says it's $52.8 million, full stop. Well, I asked for that and it was rejected. So, I don't know where he's coming from with, full stop," Bondy argued.
Bondy said the public outside of Chatham is "dead set" against the hub because the municipality has bigger issues to deal with, such as a billion-dollar water infrastructure gap.
He added that the hub has also "locked" the municipality into a new $15-$20 million fire hall, adding that it was never previously approved by Council.
The mayor replied that the fire hall Bondy refers to is a completely separate project that will be considered independently by Council at a later date.
"This project, as per the Council-approved Fire Masterplan, needs to take place regardless of what was decided on the [hub] project. His efforts to intertwine the costs of two unrelated projects are yet another instance of misinformation," concluded Canniff.
The hub brings the Civic Centre, library, and museum under one roof. Canniff added that renovating the current Civic Centre, library, and museum would be double the cost of the hub project.
Bondy said he is now bracing for an investigation by CK's Integrity Commissioner for his comments.
Canniff told CK News Today that he fully expects the hub's operating budget to be balanced by 2028-29 with newly found synergies and sponsorships.
"I fully expect the worst-case scenario is that the operational budget will be the same, but with increased services. We have all these sponsorships coming in as well, which we can be flexible to use for operational dollars, or we can use them for capital," the mayor added.
The mayor noted that the current Civic Centre is crumbling and administration was tasked with finding a solution, again arguing that the new hub is the cheapest alternative to renovating the current Civic Centre.
"Nobody asked for that. Nobody said 'bring the library up to 2025 technological standards.' Could it use a facelift? I'm sure it could. But, Council never asked for that. There was no direction from Council for a state-of-the-art museum, library, or Civic Centre," countered Bondy.
