Regina giving school developer until Friday to get finances in order

Regina City Council is giving a church group developing a school property one last chance to get its financial house in order but if that doesn't work, it wants the province to cough up more cash.

In March, the city issued a notice of default to Rosewood Park Alliance Church because it wasn't meeting its financial deadlines.

Just over $6 million has been allocated for servicing the school property in the northwest corner of the city.

Construction on school well underway

Servicing includes things like sewers, water lines, traffic lights and other infrastructure. Construction on the P3 (public-private partnership) school is already underway.

However, Rosewood has run intoproblems and earlier this month was asking the city for financial concessions.

Last night, council voted to give Rosewood until 4 p.m. CST Friday to develop a credible plan to pay its debts, finance the project, and complete the servicing. A company, Westridge Construction, has come on board to help ensure the work gets done.

Mayor Michael Fougere saidhe hopes Rosewood can pull it off.

"We've given them every opportunity. They've indicated to us they can meet the conditions in the report and we're assuming they're going to act in good faith. If not then the city will take it over."

We are not in the education business.- Regina Mayor Michael Fougere

Province 'downloading' school costs, mayor says

At the same time, Fougere and other members of council areexpressing frustration they've become involved in school-building at all. Schools are the provincialgovernment'sresponsibility, Fougere said.

"We are not in the education business,"Fougeresaid, adding that the province was "just downloading" the costs of construction and servicing to municipalities.

If the latestRosewood plan doesn't work, city taxpayers will be on the hook and extra servicing costs will have to be paid out of a reserve fund.

Before that happens, city council will ask the provincial government to make up any money gap.

"What would actually make this right is for the province to step in and just pay the difference," Coun. Shawn Fraser said. "Education is clearly their responsibility."

City council approved a proposal by Fraser to make such a request to the province in the event the Rosewood plan fails.