Greater Sudbury mayoral candidate Patricia Mills says while many people are still debating the Kingsway vs. the downtown location of what's known now as the Kingsway Entertainment District, she takes issue with its financing.
“It’s a bad deal for taxpayers,” Mills said, in a news release. “Taxpayers should not be footing the entire bill. But this Mayor chose to build the new arena on the backs of taxpayers and their hard earned dollars.”
In the news release, she also speaks about how developers were willing to pay some of the cost of the arena, which has now ballooned in price to more than $100 million.
She said if the site is being shared with partners, they should be contributing toward the cost of the site's development.
Mills also targets what she calls “the lack of clear communication and transparency” surrounding the project.
“Mills points out that the site selection process, the partnership agreements and other important details of the project have not been made public,” her press release said.
“Just recently, the public learned that a new hotel partner may not be in the mix as reported.”
Read Mills' full news release below:
Taxpayers Shouldn’t Be Paying Entire KED Costs
Sudbury ~ When it comes to the Kingsway Entertainment District (KED), Patricia Mills has a different line of questioning than others. While many people are still debating the Kingsway vs Downtown location, Mills takes issue with the financing model approved by the Mayor and Council.
“It’s a bad deal for taxpayers,” says Mills who is running for Mayor of Greater Sudbury. “Taxpayers should not be footing the entire bill. But this Mayor chose to build the new arena on the backs of taxpayers and their hard earned dollars.”
What is most alarming for Mills is the fact that developers were willing to pay for the arena. Dario Zulich’s submission to the city proposed he would pay $50 million and the city pay $10 million. Dalron’s proposal was a $66.6 million and $7.4 million split between the developer and the city.
“These proposals were never presented to council for decision. Instead, the Mayor and CAO opted to present a financing model where the city would pay 100% of the construction costs. That is the only financing plan presented to council in June 2017.”
The Kingsway arena was originally estimated to cost $60 million. The costs have now risen to over $100 million and Mills is concerned that the final price tag will be even higher. There are many additional costs such as new roads into the site, sidewalks, water and sewer installation, new pumping stations and a hydro substation.
“If we are sharing the site with other partners, isn’t it reasonable to expect those partners to bear their share of the costs? Instead, taxpayers are paying 100% of the costs thanks to this mayor’s poor management of the deal.”
Mills is also critical of how the mayor has managed other aspects of the project, specifically the lack of clear communication and transparency. Mills points out that the site selection process, the partnership agreements and other important details of the project have not been made public. Just recently, the public learned that a new hotel partner may not be in the mix as reported.
“What is clear is that 100% of the arena construction will be paid for by the hard-earned tax dollars of the citizens of Greater Sudbury. It doesn’t have to be this way. A better deal can and should be negotiated with the developer and partners.”
For more information about Mills' candidacy, visit her Sudbury.com election page.
