City staff will formally assemble a business plan for the community centre that would be built in West Ferris.
Council is directing the city’s CAO to come up with a business plan for the operation of the community centre which includes operating and capital expenses along with revenues projected over 20 years.
An amendment to the motion was also passed that will include projected revenues generated by potential sport tourism events at the community centre.
Councillor Dave Mendicino brought forward the amendment as he felt the impact of sport tourism has not been considered in the planning of the community centre.
“What I came to realize over the past day or two, any numbers we saw did not include any potential new revenues from sport tourism events for economic benefit,” he stated.
“I wasn’t really thinking about that particular angle,” responded councillor George Maroosis. “We need to bring all the factors that could influence this because we need a fair assessment of what this structure will be bringing us when it’s built.”
Councillor Johanne Brousseau brought up the projected operating cost of $100,000 a year for the arena that will be on the city’s dime, adding the community’s need for the centre outweighs that issue.
“We know we have the demand. Projected usage will drive the projected revenues,” she stated.
Councillor Mark King, who brought forward the motion to request the business plan, was wary of the city’s strategy to fund the arena by itself.
“As we start to recognize the pressures that municipalities will feel because of COVID, the usual process is no longer the right process,” he said, suggesting the private sector be involved in the project to alleviate costs for the city.
Councillor Bill Vrebosch was quick to point out that involving the private sector doesn’t guarantee cost savings for the city.
“Private doesn’t lose money, the citizens lose money because if they (private company) do lose any money, they come back to the city for whatever the difference is,” he said.
Dave Mendicino followed up by saying the private/public split on construction was considered three times in the community centre’s planning, with it being deemed uneconomical all three times.
“How do they make money? They double the rates,” he said. “If the city wants the user groups to be able to have affordable rentals, we have to kick in annual amounts.”
Mendicino continued by addressing the fact that user groups of the community centre are still in need of more ice surfaces, with roughly 1,600 kids in the city playing hockey.
“For every kid that’s playing, there are three adults – parents and grandparents – that are coming to see that kid play. That’s 4,800 individuals on top of the 1,600 kids…how much more of a community centre do you want?” he said.
While the community centre project has yet to go to tender, it is estimated to cost about $42 million to build, which includes construction to the intersection of Booth Road and Lakeshore Drive.
