Project Update - Conceptual Design and Project Budget

The City of Fernie has completed the conceptual design and Class C cost estimate for a new fire hall. The facility has been designed with a focus on firefighter safety, operational efficiency, and long-term community resilience, while maintaining a compact and cost-effective footprint.

The refined design and project budget were presented to Council on July 8, alongside a proposed funding strategy. On July 15, Council will consider 1^st, 2^nd and 3^rd reading for a fire hall loan authorization bylaw, and directing staff to pursue grant funding through the Canada Community Building Fund- Strategic Priorities Fund for the fire hall project.

Key Features of the proposed approximately 15,800 sq ft. facility include:

Four drive-through apparatus bays, and dedicated training spaces.
Decontamination and turnout gear storage areas meeting modern standards.
Multi-purpose space for meetings, emergency coordination, training and community use.
Sustainable and resilient design that includes high-efficiency elements, and meets post-disaster classification requirements.
A compact, stacked building design that is adaptable to accommodate growth and changes in service delivery.
Durable, cost-effective materials and simplified site features.

The total project budget is $16 million, which includes:

Class C construction estimate: $13.6 million to build an approximately 13,000 sq ft. needs-based fire hall that meets the current and future needs of the community.
Contingency (15%): $2.05 million (to manage risks such as supply chain volatility, weather delays, and unforeseen site conditions)
Ball diamond upgrades: $95,000 to offset the impact of losing the Servello Field at Prentice Park. Proposed improvements at Hospital Field and James White Park include shale resurfacing, fencing, and equipment
Gravel Access Route: $100,000 to provide site connectivity to the Pavillion and other existing amenities.
Utility servicing , IT infrastructure and construction insurance: $150,000 for BC Hydro and Fortis, $60,000 for IT needs, $60,000 for construction insurance.

The proposed funding strategy for this project includes using a mixture of City reserves, grant funding, a contribution from the Regional District of East Kootenay (as defined in our fire service agreement for providing fire service at the ski hill,) and borrowing.

A major component of the proposed strategy is applying for a $7 million grant through the Strategic Priorities Fund. Fire Halls are eligible for funding through this funding stream. However, to be eligible, all other funding sources must be confirmed before the September 12 grant deadline.

In response, staff are recommending that Council authorize approval-free borrowing under newly updated provincial legislation. This recent change, effective June 2025, doubles the borrowing limits that municipalities can access without requiring approval from electors through a referendum or alternate approval process. For the City of Fernie, this means that Council can now authorize a long-term loan of up to approximately $23.8 million (based on current interest rates), well above the amount required for this project.

Choosing the approval-free borrowing route allows the City to align the fire hall project timeline with the grant intake and maintain eligibility for grant funding that could significantly reduce the burden on taxpayers, and avoid the risk of delays and escalating costs associated with waiting for a referendum.

The referendum, previously anticipated for fall 2025, was to get community approval for borrowing the required amounts to fund the construction. As this is no longer a requirement for this project borrowing, and the timing no longer supports a referendum if the City wants to remain eligible for this critical grant funding, Staff are recommending advancing this project without a referendum.

With approval of the project budget, and funding strategy, the City is targeting breaking ground in spring 2026, and having an operational Fire Hall in serving the community in 2027.

A Council decision on the funding strategy and advancing the supporting loan authorization bylaw is expected at the July 15, 2025 Special Council Meeting.