Construction of the new art gallery, library and convention centre in downtown Sudbury will cost about $107.5 million, says a detailed report headed to city council next month.
The report says the convention centre will cost about $65.5 million, while the combined art gallery and library will be $42 million. The projects are to be built in the Sudbury Arena property on Elgin Street.
Costs for decommissioning and demolishing the current structure – which is being relocated to the Kingsway – is another $4.5 million, bringing the total to $112 million. While finding ways to preserve the old arena were looked at, the report said it wasn't financially viable.
“Although adaptive reuse was fully considered in this process, it was not possible to utilize the current structure in a meaningful and cost effective way,” the report said. “The recommended option does, however, contemplate utilizing the existing arena excavation ('the bowl') for the purposes of parking for the new library and art gallery.
“Furthermore, staff continues to explore how elements of the Sudbury Community Arena can be integrated into the new build as a way of preserving historical character and reference.”
While the city will pay most of the costs, there are federal and provincial funds that could contribute, such as FedNor, the Canada Cultural Spaces Fund and the NOHFC.
The Greater Sudbury Convention and Performance Centre, as it's being called, will be a 60,500 square foot building with a 950-seat main hall.
“It will feature symphony concerts, public lectures and touring stage productions and, in less than an hour, convert to a flat floor ballroom that can host 850 conference delegates,” the report says. “This innovative approach will address community needs that were first identified almost three decades ago and put Greater Sudbury on the next level for public performances and convention business.
“The GSCPC will be the largest, most state of the art flexible meeting and performance space in Northern Ontario.”
It's forecast to increase local convention business by 25 per cent, or about $3 million a year in new spending.
“As a result of the capital investment of $65.5 million, the project will create new jobs with an estimated $15 million in salaries and wages will be generated to support 174 direct jobs in Greater Sudbury,” the report said. “Furthermore, Greater Sudbury can expect 37 annual jobs from operations and visitor spending.”
By year five, the convention centre is expected to operate at an annual loss of $275,000, which compares well to similar centres in Canada, which have annual losses of between $100,000 and $1 million, the report said.
It's expected to host 221 meeting and convention events, as well as 55 performing arts events by the same year five of operation. That translates into demand for 8,000 more hotel bookings a year. Staff working on the project will be putting feelers out to the private sector to gauge interest in building a new downtown hotel to accommodate convention centre visitors.
To maximize their chances of getting funding for upper levels of government, the report recommends applying for money for the entire project, rather than individually.
“Furthermore, any proposal submitted needs to clearly illustrate the strong business case for the senior levels of government to support the project, without reference to a particular funding program or envelope,” the report said.
The report, which will be reviewed at the July 9 city council meeting, seeks $175,000 to continue work on developing the project for the next six to eight months.
No final decision on whether to proceed will be made until the next city council works on the 2019 city budget after the October municipal election.
