Although the $215-million Kingsway Entertainment District project as proposed by city staff is anticipated to receive a quick death at Tuesday’s meeting, an alternate plan is in the works.
Ward 11 Coun. Bill Leduc and Ward 5 Coun. Robert Kirwan said they are introducing a motion at the 2 p.m. city council meeting to impose a maximum budget of $150 million.
The motion, Leduc told Sudbury.com, will task staff with coming back to city council with an arena proposal at that price limit, “which can be done, by the way.”
At this stage of the progressive design-build process, “the focus was for the proponents to provide a complete and transparent estimate and not attempt to provide the city with the lowest-cost proposal,” according to a recent report by city engineering services director David Shelsted.
As such, there is some wiggle room to alter the project in the event the city’s elected officials opt to proceed with what Shelsted describes as “a collaborative approach that has the design-build team work with the owner to get to a target price.”
“The scope of the project can be reassessed to reduce the project budget,” Shelsted’s report continues. “In fact, the preferred proponent (Ball/TESC Construction Inc.) has provided suggestions for design changes and savings in their bid documents that will be considered in the design development stage.”
In a post published on his Valley East Facebook page, Kirwan wrote he and Leduc hope enough of their colleagues support the motion so they are able to proceed with the KED at a more-acceptable price point.
“This direction would give the partners until January to come back with the adjustments. It would delay the beginning of the site preparation, but would allow us to get it right,” he said.
“I still believe that the councillors who have always supported the KED development will give staff and the contractor the time to work towards the $150-million target.”
The “long-term economic development potential and new job creation would justify an investment of $150 million,” Kirwan said.
“The $215 million was based on what was asked for in the RFP. We have learned that there are a large number of enhanced features that are nice to have, but not needed, and that those features drove up the cost. I would like to give (Ball/TESC) a chance to show us what they can do for $150 million.”
By pushing the project to January, the KED would remain an election issue for the Oct. 24 civic election. The current timeline as proposed by city administration would have enough approvals in place for the KED to be set in stone by that time.
The project is currently budgeted at $100 million, and would include a municipal arena/events centre and shared space called Festival Square linking it with a private hotel owned and operated by Genesis Hospitality and a private casino operated by Gateway Casinos.
These private partners and land developer Dario Zulich reaffirmed in letters to city council last week they remain on board with the project despite its more than doubling in costs.
This support does not appear to be shared by the municipal partner, with the majority of city council confirming to Sudbury.com they would not approve the $215-million project as planned, which would require the city to take on an additional $115 million in debt.
Although the results of the Leduc/Kirwan motion seeking a budget of $150 million remain to be seen, the odds stacked against it due to Mayor Brian Bigger, a longtime proponent, indicating he intends to vote to defer any further debt-financed projects to whatever incarnation of city council is elected on Oct. 24.
Bigger’s vote would be enough to tip the scales against the Leduc/Kirwan motion in the event the balance of city council voted as they did in September 2021.
At the time, a 7-6 vote of city council proceeded with site preparation work, which was later delayed at the last minute when Gateway Casinos paused their investment.
The votes of support came from Leduc, Ward 12 Coun. Joscelyne Landry-Altmann, Kirwan, Ward 6 Coun. René Lapierre, Ward 7 Coun. Mike Jakubo, Ward 8 Coun. Al Sizer and Bigger.
The project was budgeted at $100 million at the time, and it’s unlikely ballooning costs will help convince the six city councillors opposed to the project to throw their support behind it.
The six councillors to oppose the project in September 2021 include: Ward 10 Coun. Fern Cormier, Ward 1 Coun. Mark Signoretti, Ward 2 Coun. Michael Vagnini, Ward 3 Coun. Gerry Montpellier and Ward 4 Coun. Geoff McCausland and Ward 9 Coun. Deb McIntosh (who by abstaining from the vote was counted as a nay).
Montpellier told Sudbury.com recently his position has been clear from the start and he would continue to oppose “the world's most expensive, single pad, standalone hockey arena, built at the back end of a private property, property development benefiting the land owner fully paid for by Sudbury taxpayers.”
Signoretti maintains his opposition alongside disappointment the project has reached this stage.
“We wasted taxpayer money and staff time going through this process … when we should have had the knowledge to know the cost wouldn’t be anywhere near the $100-million mark,” he said.
As for a potential motion to move forward at a lower cost, Signoretti said it’s inappropriate to tie the hands of the next city council whose members should make a final decision.
McIntosh is of a similar mode of thought, and told Sudbury.com that after several years of debating the merits and pitfalls of the KED, people are sick of it.
“We should set the money aside and stop talking about it and go out – it’s election time – go out and listen to people instead,” she said. “The next term of council will determine what to do with it.”
Tuesday’s city council meeting is scheduled to begin at 2 p.m. and can be attended in-person at Tom Davies Square or viewed virtually by clicking here.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
