I need to clear up some false information that continues to be thrown around by those who are mobilizing a campaign against the Kingsway Entertainment Centre.
At no time did Dario Zulich ever say that he would be "paying" for a new arena with his own money. He said that his proposal for a new arena on the True North site on the Kingsway would not cost the city anything. And that is exactly what is going to happen and it is the reason why city council approved the Kingsway site by a vote of 10 to 2 on June 27, 2017.
The arena was always going to be paid for and owned by the City.
However, the arena is not going to cost taxpayers a cent. In fact, by working with a strategic partnership with three other private sector companies — namely the developers (Zulich & Perry Dellelce), Gateway Casinos and the hotel owner — the city will be making an investment that will produce a return on the investment that makes it financially profitable.
The city was able to purchase the land for $10. The city is able to split the cost of infrastructure with the other partners. And when it is in operation, the city will be receiving a minimum of $3 million in new commercial taxation each year from the casino and the hotel, plus an additional $2 million in the city share of revenues from the casino.
There are several other businesses that are poised to purchase and develop on the remaining 120 acres of land around the critical cluster, giving us an additional $2.5 million per year in commercial taxes and, as the development continues to expand, that number will increase annually.
So for an investment of $5.5 million maximum to pay the mortgage on the new arena/event centre, we will be making enough money to pay for the debt charges, plus cover any operating losses, plus have additional money left over to invest in the downtown arts and culture district.
Dario Zulich has lived up to his promise. He has arranged for the development to pay for the new arena so that it is not costing the city a cent. He never said he would pay the full cost of the arena and then watch the city reap the benefits of commercial taxation. He said that the arena would not cost the taxpayers. And that is what is going to happen.
So when you hear anyone saying that he promised to pay for the arena on his own, please straighten them out and tell them to stop spreading what they ought to know is false information. He said it would not cost the taxpayers any money. The entire cost is going to be paid for from new money generated from the development.
Robert Kirwan is the Greater Sudbury city councillor for Ward 5.
