CAMBRIDGE — Plans for a controversial $15-million city-owned Drayton Theatre are on track to become reality this year.

After a testy debate Monday night, city council approved spending $900,000 to design the 500- to 600-seat facility on a city-owned parking lot at Grand Avenue and St. Andrew’s Street. That should allow for a construction start by fall and a potential opening by the end of 2011.

The $900,000 question wouldn’t have changed the final 2.8-per-cent tax hike council approved earlier in the meeting. That’s $27 more added to an average city home with an assessed value of $214,000.

With the Waterloo Region tax hike added in, the increase is $64. The education levy set by the province isn’t known yet, and makes up the remainder of property tax bills.

In December, 7.3 per cent increases in the 2010 water and sewer rates, or $52 more for the average household, were set. The hike is part of a long-term plan to eventually double the water-sewer rates over 10 years to repair a backlog of leaky and aging pipes.

It was the plans for the city to build a theatre that would be used without taxpayer subsidy by Drayton Theatre that prompted the hottest budget debate.

“We don’t have enough information to make that right decision,” said Coun. Rick Cowsill as he questioned the city’s involvement in the project.

While he praised Drayton, he said financial projections of the region-wide economic boost from a theatre in Cambridge are flimsy and based on data that is several years old.

“There’s no business facts. Right now it’s all assumptions.”

Cowsill called for the $900,000 to be put on hold until the city sees an up-to-date business case to justify it.

Coun. Ben Tucci said there’s plenty of good data to support the plan — especially considering that Drayton has a 20-year history in six towns of running theatres without any taxpayer operating subsidy.

“If this thing were going in Hespeler, you wouldn’t be making the comments you were making tonight,” Tucci said.

Cowsill represents north Cambridge, which includes the old Hespeler village. Without a firm financial plan, Cowsill said he doesn’t want taxpayer money involved.

“I couldn’t care less where it would be in the city. I wouldn’t want to see it in any part of our city,” Cowsill said.

In the end, Cowsill and Coun. Linda Whetham voted against the city’s capital budget, which included the money for Drayton design.

The debate frustrated Mayor Doug Craig, who called the Drayton project the “scapegoat of the budget.”

The city is contributing $6 million to the Drayton Theatre, with Ottawa and Queen’s Park also chipping in $6 million each.

Nobody’s complaining about the combined $40 million in borrowed money the city, federal and provincial governments are spending to fix arenas, pools and parks, Craig said. And nobody complains about the millions of dollars in annual operating subsidies council forks over to run arenas, pools and parks every year, he said.

Earlier in the meeting, council gave $5,300 to the Grand River Film festival. It has originally asked for $20,000, but when turned down, organizers said the three-year-old event could fold without city help.

Council also gave $5,000 to the city’s three Royal Canadian Legion Branches to host a parade through Preston to mark the 65th anniversary of the D-Day landings.

Council also fully reinstated the $30,000 grant fund used to help owners of heritage properties renovate their homes. Council had cut it back $20,000 in earlier budget deliberations.

kswayze@therecord.com