With a divided city council showing little support for the Kingsway entertainment district thus far, the more than $215 million doubling project appears to have tipped the scales against the city continuing with the municipal arena/events center project as currently proposed
With City Council support waning in light of its more than doubling price tag to $215 million, the Kingsway Entertainment District is likely to be scrapped at Tuesday’s City Council meeting.
Of the slim majority of City Council members who support the project so far, enough have indicated their intention to vote against it next week to kill it.
“It just doesn’t make sense to me anymore,” Mayor Brian Bigger told Sudbury.com. “I cannot support a total cost of $215 million. … I just can’t support the necessary tax increase when we already have a lot of pressure this year with inflation.”
The existing financial pressures in question have already affected next year’s budget deliberations by $16.3 million, which the city administration has been asked to cut to achieve a planned 3.7 percent tax increase.
Because the City Council has budgeted just $100 million for the municipal arena/events center so far, the administration recommended putting the $115 million shortfall into debt, which is expected to cost $7.48 million to service annually over the next 30 years .
In addition to ongoing concerns about tax levies, Bigger said there is too much sensitivity regarding the city’s existing debt of approximately $355 million to accumulate more.
“My position will be to reevaluate all the things we’re working with,” Bigger said. “That will probably be a decision made by the next council, which I hope to be a part of.”
From what Sudbury.com gathered from city councilors and gleaned from past KED votes, it seems clear that the project, as currently proposed, will not survive Tuesday’s meeting.
On September 28, 2021, the city council voted 7 to 6 to approve a motion for the city administration to negotiate the start of site preparation. The following council members voted for it:
Department 11 count. Bill Leduc, District 12, Dist. Jocelyn Landry-Altman, District 5, Dist. Robert Kirwan Ward 6 Coun. Rene Lapierre, Ward 7 Coun. Mike Jakubo, District 8. Al Sizer and Mayor Brian Bigger.
In addition to Bigger, Kirwan and Leduc confirmed their intentions to vote against KED as proposed Tuesday.
“It totally surprised me,” Leduc said of the $215 million price tag, adding that he had expected it to exceed the already budgeted $100 million, but not by much.
“It’s disappointing that we’ve come this far now and the anti-KED group has held us back for so many years and we’re paying the price.”
Legal challenges have delayed the project for years, he said, and pushed the project into the era of COVID-19, which has brought with it cost inflation greater than any other in recent history.
In addition to investigating the RFP process, Leduc said he would like to see the project returned to the city administration with a mandate that they meet within a $150 million budget.
Kirwan offered a similar position as Leduc and confirmed that while he still very much supports the project, he cannot vote in favor of a $215 million plan.
“If council rejects the recommendations, staff will have to ask the successful RFP proponent to revise the plans, revise their own cost estimates and come back to us with a more acceptable budget proposal and financial plan.”
Yakubo told Sudbury.com that he is “still evaluating the cost of all future development, knowing full well that the cost of any new facility is not going to decrease significantly in the future. This price makes it a difficult decision, but I will be ready to make that decision on Tuesday.”
Those elected officials who were against the side of voting to continue site preparation work last year included County 10. 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, having abstained, was counted as negative).
Given that they voted against the $100 million project, it is unlikely that more than doubling the cost of the project to $215 million will convince them to support the project.
“As you know, I never voted in favor of this bill,” Cormier said. “That certainly won’t change given the additional impact on taxation that it would create.” Without an identified source of funding to cover the additional costs, I do not believe it would be prudent for us to continue to pursue the project.”
McIntosh declined to comment, while McCausland confirmed his growing opposition to the project.
“This is a time of uncertainty, with rising costs already affecting families across Canada, and we have no shortage of roads, pipes and buildings in Greater Sudbury that need investment,” he said. “I believe the city council needs to focus on the outcomes, what we’re trying to achieve with an arena investment, and see that there’s still an opportunity to turn around and provide what we want and need both for today’s events, and for generations to come.”
McCausland wants to see the city “breathe new life into the old barn” — the downtown Sudbury Community Arena — by accepting Project Now’s proposal to renovate the 70-year-old building.
“We can add nearly a thousand seats, improve the arena as a performance venue for concerts, add modern locker rooms and bathrooms, improve accessibility, add restaurants, shops and concession space, and improve the loading area for traveling shows, all while stunning approach so that the Wolves’ season is not interrupted,” he said.
This option was proposed in 2020 at a cost of approximately $60 million, which does not include the parking structure, which is estimated to cost approximately $35 million.
Leduc said that with KED’s price more than doubling to $215 million, why wouldn’t the downtown options, which were originally slated to cost about the same or more, increase at the same rate?
While KED, as currently proposed, is likely to fall at Tuesday’s City Council meeting, it remains to be seen what might take its place.
Leduc told Sudbury.com he plans to table a motion or amendment to proceed with the project in a format other than the one presented, while Bigger said it’s the best decision made by whichever incarnation of city council is elected on October 24.
The city’s current debt includes $90 million already secured and earmarked for KED, which they secured along with $110 million for other projects at an interest rate of 2.416 percent.
“I’m sure different councilors will come up with different proposals on how to spend that money, but there are still some unresolved topics that our community really cares about,” Bigger said, citing embattled Laurentian University as an example.
Signoretti, Vagnini, Montpelier, Sizer and Landry-Altman did not return Sudbury.com’s phone and email messages for comment. Lapierre clarified that he could not comment due to limited cell coverage where he is.
Tuesday’s City Council meeting will begin at 2 p.m., at which time members of the public can witness proceedings in person at Tom Davis Square or watch a live stream by clicking here.
Tyler Clark covers City Hall and political issues for Sudbury.com.
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