I am writing this letter over concerns I have regarding, Thunder Bay’s proposed Event Center. There are several concerns I have about this project that I will present here.
1/ Facility Cost : In the CJ Dec 17 2010,the multiplex was suggested to the public. The size was 5500 seats at a cost of $50-60 million. An example presented was the 6100 seat Essar Centre in Sault Ste Marie, built in 2006 at a cost of $25 million.
According to the Oct 9 2012 Consultants report, Thunder Bay’s expected cost is $106,116,750 million at the Water St location, this does not include the cost of moving the Camelot St Hydro station, a cost I’ve been told to be $6.3 million. The report includes the cost of a 200 car parkade, contrary to a March 2012 recommendation for a 500 car parkade at a cost of $16 million. I ask if the “missing” 300 spots are a future surprise we can expect in the future? With the 200 spots costing $7 million (not the $6 million specified) ,the cost for these missing 300 spots will add another $ 10.5 million to the Water St location. What will be the cost to acquire the properties, demolish and site preparation for these spots? I have been told in the neighbourhood of $2-3 million.
The Innova Park location is priced at $106,510 million with no extra costs. The Innova Park price also includes a cost of $4.175 million for roadwork within Innova Park. Travelling into Innova Park weekly, I have observed the roads to be in satisfactory condition, though work will likely be needed in the future but not as a priority, as there are numerous other roads more urgently requiring work. I also feel the roadwork cost is improperly allocated to Innova Parks cost. I summarize the cost as such.
Water St Cost $106,116,750
Hydro Stn relocation & cleanup $6.3 million
Additional 300 car parkade $10.5 million
Property acquisition, demolition, cleanup, etc $ 2.5 million
Total Cost at Water Street $125,416,750
Innova Park Cost $106,510,00
Less misallocated and unnecessary road work $4,175,000
Total Cost at Innova Park $102,335,000
Clearly the Innova Park option is a far cheaper location by $23,081,750. This is a substantial amount and clearly illustrates the facility should be built at Innova Park
2/ Access & Parking: The cost of parking in the consultants report includes 2000 spots at Innova Park. It does not include the full 500 spots specified in March 2012 as mentioned above. With access north to Oliver Rd via Burwood/Central/Golf Links from the NW parking lot, and south access onto Golf Links/Edward/Harbour Expressway from the SW parking lot, will make exiting Innova Park quite efficient. Innova Parks traffic flow will be substantially more efficient than from the Downtown parkades, and other parking areas. The report states that once patrons arrive at their vehicle, there departure will be immediate. This claim is quite unlikely, as exiting any parkade is a slow process and this is compounded by traffic signals at Red River Rd and Camelot St that will slow the traffic flow.
The average walk to patrons vehicle is much shorter at Innova Park, on flat terrain which will make access easier for all patrons. The hilly terrain surrounding the Water St location will become an impediment to many ,as well as deterring many. This is quite important, with over 50% of Thunder Bay’s population over the age of 50. Innova Parks central location makes it equally accessible from all area’s of the city.
3/ Proximity to Supporting Facilities : Again Innova Park is superior to Water St. Supporting facilities at Lakehead University, Confederation College, and the city’s better hotels along Arthur St are a 5-10 minute Drive. While Water St has several fine restaurants close, Innova Park has several fine restaurants with in a 5-10 minute drive. It is also a fair assumption that with the growth of Innova Park, other restaurants, hotel(s) will choose to locate there. The close proximity of these supporting facilities is of great importance to the success of the facility. Hamilton chose to locate its convention facility away from their “supporting facilities”, and it struggles in Canada’s “Golden Horseshoe”. How can we we expect to succeed by following a failing business model?
( see Gary Laine: Viewpoint CJ April 27 2012)
4/ Benefit to the whole city : Building at Innova Park offers the unique opportunity to help offset its building and operating cost. With the stimulating of Innova Park, the sale of lots there will allow the city to recover its original investment, with sale profits helping offset the cost of the facility. The new tax revenue off these lots will help offset the operating cost of the facility. Innova Parks central location offers benefit(s) to all business in Thunder Bay, not one specific area.
5/ Operating Costs : The suggested yearly operating costs are suggested to be between $1.198 million to $1.404 million, based on 40 hockey games and 180 events in the convention facility. The are quite ambitious projections and failing to meet them will only result in a far higher operation deficit. Other cities have fell far short on their projections, at a huge cost to taxpayers! One major omission is, what is Thunder Bay’s “competitive advantage”, so that we can secure these dates, at a loss to other communities? This is more concerning, when according to MacLeans magazine (Jan 16 2012) there is a glut of convention facilities in North America.
The suggested 40 hockey games, is a lofty goal, as presently the LU Thunder wolves play 20-25 games including exhibition & playoffs, with an AHL team playing 35 home games each season. In a previous report, an AHL team needed an average of 4200 fans to break even, prices in the AHL range $20-30. The LU Thunderwolves average 2500-3000 fans at $12 per ticket, clearly the AHL option is an unlikely scenario when our geographic location further compounds it. Teams in the AHL have had a recent history of being “short term”, with several relocating on a seemingly regular basis. One needs only look at the Abbotsford BC experience (CJ March 3 2012) to forget an AHL team as a prospective tenant.
The suggestion of “naming rights”, is not a certainty as the TB Community Auditorium explored this avenue with little success.
6/ Peoples Preference : Several polls that have run in the Chronicle Journal, with over 1500 voters have preferred Innova Park over Water St.
May 10 2011
Innova Park 35% 551 votes vs. Water St 26% 411 votes, the other four choices account for the balance of the 1595 votes.
June 27 2011
Innova Park 60% 1273 votes vs. Water St 29& 613 votes, the other two choices account for the balance of the 2122 votes.
Oct 17 2012 In the wrong location 64% (973 votes)
Perfect-Its the right location 21% (312 votes)
Something taxpayers can't afford 15% (221 votes)
No Opinion 1% (8 votes)
Total Votes 1514
Quite clearly, the people in Thunder Bay overwhelmingly prefer the Innova Park location, and loudly reject Water St as a location for this facility. I am of a firm belief that the taxpayers of Thunder Bay must decide the location. The taxpayers are the owners of it and ultimately will “Vote” on its location, by either supporting it, or not supporting it! It makes sense to me that the vote be held in a plebiscite to, decide its (future) location, and if we should proceed at this time. This is a very contentious and divisive issue in the community, with some resorting to personal attacks to make their point. I know as I have been on the receiving end of these personal barbs. We the people, must make the choice that wil leave a positive lasting legacy we can celebrate and bring our city together as one. To do otherwise is a trap for fools!
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