A series of 40 questions and answers between three shortlisted Kingsway Entertainment District design/build bidders and the City of Greater Sudbury reveals a number of their concerns.
The most detailed of these questions/answers centres on an alleged conflict of interest with one of the bidding groups, Ball/TESC Construction Inc., which partnered with Architecture 49 Inc. on a bid for the design/build of the proposed centre’s municipal arena off of The Kingsway.
The CEO of TESC Construction Inc. is Dario Zulich, who is also the land developer partner who has entered into a comprehensive cost-sharing agreement with the city for ground preparation work. He is also the owner of the Sudbury Wolves hockey team and Sudbury Five basketball team, which will both use the arena.
The design/build teams were shortlisted prior to The Kingsway being selected as the preferred site for the project, the city clarified in their response to the inquiry.
“No proponents involved in this bid solicitation process have participated in the preparation of the bid solicitation nor will be involved in the evaluation of proposals or decisions with regards to the contract award,” the city added.
Further, the city asserts that several steps have been taken to ensure the bid solicitation process is fair, open and transparent. Various documents related to the request for proposal can be found on the city’s website by clicking here.
Comprehensive relationship reviews will be signed alongside a conflict of interest declaration, and the city has also retained the services of a fairness monitor whose role will be to monitor and review the procurement process from bid solicitation development up until the contract award.
The existing cost-sharing agreement centres on shared elements of the development and does not involve the scope of the bid solicitation, with the exception of the hotel and casino contributing to the final cost of Festival Square – a shared outdoor space intended to link all three buildings together.
The three shortlisted bidders include:
- Ball/TESC Construction Inc. (Joint Venture)/Architecture 49 Inc.
- EllisDon Corporation/BBB Architects Toronto Inc., in conjunction with J. L. Richards and Associates Ltd.
- PCL Constructors Canada Inc./Parkin Architects Ltd.
In another question issued by bidders, it’s asked why J.L. Richards and Associates Ltd. is not a conflicted party.
In the city’s response, it’s noted that the company was retained to design the roads and intersections for the development by the developer prior to The Kingsway site being selected. The developer is still responsible for the road design and the city is responsible for the intersection and stormwater management pond design.
“For continuity, JLR (J.L. Richards and Associates Ltd.) was selected to finish the designs and to prepare the base drawing for the GSEC (Greater Sudbury Events Centre) so that the site works contract could be tendered,” the city said, adding that this detailed design is outside the limits of the bid solicitation.
The city has budgeted $92 million, excluding HST, toward the design-build of a municipal arena at the Kingsway Entertainment District site, and a proponent asked the city what would happen if their proposal exceeded this figure.
“In this market and considering the impacts that COVID has had on labour, materials and equipment, a proponent has no idea if this project can meet this affordability criteria,” they said.
In the city’s response, they clarified, “any financial proposal that exceeds the project budget will be disqualified. It is the proponents’ responsibility to prepare a design and cost proposal within the city’s budget.”
For the KED project as a whole, city council has approved a total budget of $100 million, including $90 million in debt. Spending beyond this figure would require city council approval.
The request for proposal selection process is expected to take place early in the third quarter of the year, and will accompany city council approval of a project completion agreement signed by all partners and a final budget.
Prior to the request for proposals returning to city council for a final decision, they will be reviewed by the city’s evaluation team, which includes staff members Ian Wood (executive director of Strategic Initiatives, Communications and Citizen Services), David Shelsted (engineering services director), Jeff Pafford (director of leisure services) and Rebecca Gilchrist (city project manager). Conrad Boycuk and Ian McKay, both from Ian McKay Architect Inc., are also on the team and their efforts will be overseen by the fairness monitor.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
