GREATER SUDBURY, Ont. — A new-build downtown arena/events centre has been recommended by Greater Sudbury staff, at a total budgeted cost of $200 million.
To fund this project, the city recommends securing an additional $135 million in debt to top up the amount already borrowed for the project ($90 million, minus expenses to date).
This, according to a report by city CAO Ed Archer which the city’s elected officials are slated to debate during their April 16 meeting.
The report offers a long-awaited answer to the question of whether the city should proceed with a new arena/events centre build or renovate the existing Sudbury Community Arena.
On April 16, it will be up to city council to decide whether they agree with Archer’s assessment.
In his report, Archer estimates a reasonable grand opening date the city could expect for a conventional design-bid-build project on its current timeline could be April 2028.
Within Archer’s report are the findings of Brisbin Brook Beynon Architects, which analyzed whether the city should build new or renovate the more than 70-year-old Sudbury Community Arena.
They found the cost of renovating is roughly the same as a new build, but wouldn’t achieve nearly as many goals as a new build would, such as increased seating and modernizing the centre to meet industry best standards.
At $200 million, the arena/events centre as proposed could be a tough sell for city council.
This, judging from the fact the previous city council unanimously voted down the project’s previous incarnation, the Kingsway Entertainment District, when its projected cost hit $215 million in July 2022.
At that same meeting in 2022, a near-unanimous vote also shot down a motion to pare the project down to $150 million.
In the lead-up to the 2022 civic election, Mayor Paul Lefebvre said the arena/events centre project’s finances should stick to the original amount borrowed.
“On the issue of cost, we need to ensure two fundamentals,” he said at the time. “That the project is within our means, well planned and managed and does not exceed the money already allocated by the last council, less the amounts that have been already spent. We need to live within or below that budget maximum.”
The City of Greater Sudbury has earmarked $90 million in debt toward the project, of which Archer’s latest report notes approximately $65 million remains after having spent money on the KED and various downtown land purchase/demolitions to make way for the arena/events centre and ancillary services.
Paying for the $135-million additional debt load could be done by pulling funds from a capital levy intended for roads, or by increasing the tax levy by 0.4 per cent per year for four years beginning in 2025, Archer’s report recommends. Increasing the municipal accommodation tax, a ticket surcharge and fundraising are other funding options outlined in the report.
At 5,800 fixed seats, the downtown arena/events centre being proposed would have the same number of seats as the Kingsway Entertainment District would have had.
A renewal of the existing building is estimated to cost $180 million. Factoring in reduced revenue attributable to a new event centre build option, the cost hits $191 million.
A new build would cost $187 million.
These cost estimates exclude stormwater management, service relocations, and do not address parking. Demolition of the existing arena is estimated to cost $5.5 million, and is not included.
Work to incorporate a high level of Community Energy and Emission Plan objectives (environmental) would require an additional $6 million to $8 million.
A choice to exceed Accessibility for Ontarians with Disabilities Act requirements, such as which city council is currently considering for the Cultural Hub at Tom Davies Square library/art gallery project, would cost an additional $2 million to $3 million.
Alongside the new build and renovation options is a third option — do nothing.
“With a 73-year-old building, doing nothing signals acceptance of a risk level that exceeds council’s expressed risk tolerance and increases the likelihood of unplanned service interruptions and/or high repair costs,” according to Archer’s report.
The April 16 city council meeting will begin at 6 p.m. and can be viewed in person at Tom Davies Square or livestreamed by clicking here.
Tyler Clarke covers city hall and political affairs for Sudbury.com.
