The City of Nanaimo has decided it will not provide $6.05 million for a new recycling depot on Nanaimo Recycling Exchange land.
The city said in a release on July 11 that council voted not to provide an annual operating grant to the Nanaimo Recycling Exchange (NRE) to cover the debt servicing of a mortgage for the construction of a new zero-waste, non-profit facility as well as interim funding for one year’s operation.
Council made the decision at their July 9 in-camera meeting by a vote of 6-2. It came after advice from legal counsel and finance staff.
The NRE had asked the city for $6.05 million plus $600,000 to cover the costs between when the old facility shut down and the startup of the new one. Over the past five years, council had looked at providing city land to the NRE. The city had also reviewed whether the Regional District of Nanaimo could purchase the land currently owned by the NRE’s company, Windover Enterprises.
“Council wishes to thank the NRE for over 25 years of dedication to the reuse, reduction and recycling of waste,” the city said in a statement.
“At this time, other operators have committed to filling the void left in the Nanaimo Recycling Exchange’s absence. These operators have pledged to invest in their current facilities to provide additional enhancements and services to support the regional district’s goal of 90 per cent diversion from the landfill. The new initiatives will take time to implement. The industry has also embarked on a marketing and public relations campaign to inform the community of their new offerings.”