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Council moves new arena to next step — costs estimated at $60M+

Council has given its approval and now it's up to the staff of the City of North Bay to crunch the numbers a consultant says are almost guaranteed to soar past the original $52-million upset limit
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Council chambers and downtown North Bay as seen from the Mayor's Boardroom on the fifth floor of North Bay City Hall.

North Bay City Council voted 9-1 in favour of moving forward with a plan for a revamped twin-pad arena and community centre project during a special council meeting on Wednesday.

Before the vote, Coun. Lana Mitchell, the chair of council's infrastructure and operations committee commented, "I think we've reached a point where we need to draw a line in the sand and move forward. We're either building an arena or we're not. I don't know how else to say it."

Earlier this year, a trident-shaped community and recreation centre project was shelved as bids to build ballooned to more than $70 million.

During the special committee meeting portion held earlier in the evening, council members learned this reboot will, according to a Colliers Project Leaders consultant, come with an estimated cost of at least $60 million. After receiving a presentation from Andrea Findley on Colliers' market-sounding report, council members posed their questions about the project to Findley and CAO John Severino.

See related: Report: Proposed arena target budget of $52M is 'insufficient'

Adjusting for an approximate premium of 20 per cent for the net zero-carbon build, Findley estimated the project will cost upward of $60 million while Coun. Mark King used a figure of $62.4 million in discussions. Findley later agreed that $62.4 million might not be the upper limit for the project. Coun. Chris Mayne reasoned the cost could reach as high as the rejected $70-plus million price tag for the last project if more talk and no action is taken.

"How do we get the best bang for the taxpayer's dollar?" King asked.

Severino responded, "If we use the Progressive-Design-Build (PDB), we'll be costing it at certain milestones — 20 or 30 per cent, 50 or 60 per cent — that we'll get potentially more competitive prices if supply and demand issues are aligned but there are no guarantees. The marketplace will determine that."

Mayor Peter Chirico also favours the PDB approach. "As we move forward in this project, we can ensure as a council that everything we need as a functional program — including barrier-free — is maintained."

Councillor Jamie Lowery cast the lone dissenting vote while Coun. Mac Bain was absent. "I see a lot of risk, there are so many competing priorities for the city," Lowery told his colleagues.

Coun. Tanya Vrebosch successfully pushed for a barrier-free build similar to what was included with the first project by way of an amendment.

Council then approved the recommendation that accompanied the consultant's and staff reports on the project. The move will see staff prepare a design proposal to be issued in the first quarter of 2024 in an attempt to complete the build in 2025 while fulfilling the net zero-carbon requirements to receive nearly $26 million in federal funding. Council's direction will also see staff prepare budget target options for council consideration early in the new year so a Request for Proposal (RFP) can be issued "that ensures broad industry interest and participation."

See also: Ready for more new arena talk? Status update coming

In September, the Community and Recreation Centre Ad Hoc Committee recommended — and the council soon after approved — investigating the feasibility of a new project with a $52 million upset limit that will include the minimal possible functional programming, according to this report from Severino. A third-party Class A estimate was completed in November 2022. Council committed in September to an inclusive budget of $52 million for a rebooted project with the budget covering the complete cost, including all consultants, construction, and internal costs.

See: Council sets in motion new arena project with $52M upset limit

In the Colliers report, the participants indicated the desired project budget of $52 million was "likely insufficient given the current design and Net Zero energy requirements ... the overall commentary was that even with a redesign, the Net Zero requirements will drive the cost higher and likely above the budget. The full impact on cost and schedule was unknown."

The City of North Bay has set key milestone dates of September 2024 for construction drawings that meet v2 design requirements for the federal GICB program and substantial completion in 2025 to coincide with the City of North Bay’s centennial celebration.

In July 2022, Nipissing—Timiskaming MP Anthony Rota announced up to $25.77 million in funding for the previous version of the project stalled due to high costs and public opposition. The GICB funds were earmarked to help with the cost of the architecture and engineering design and were contingent upon the construction and commission of a net zero-carbon building. City officials have been formulating plans for a new building design with that federal money still in place.

The requirements of the Net Zero Carbon CaGBC design standard v2 must be met to receive the GICB Program funding from Infrastructure Canada. Projects must submit for certification before September 30, 2024, or upgrade to version 3.

Industry insiders stated the "2025 timeline for completion was aggressive ... Most participants in the market-sounding report agreed that construction would range from 16 to 20 months from start to finish," while two "suggested the City may wish to amend the target for the Centennial to having a groundbreaking in 2025 as this would likely be more achievable than opening the facility in 2025."


Stu Campaigne

About the Author: Stu Campaigne

Stu Campaigne is a full-time news reporter for BayToday.ca, focusing on local politics and sharing our community's compelling human interest stories.
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