A new Nanaimo arena with a First Nations design will be built on city-owned downtown waterfront land — if voters approve a borrowing referendum on March 11.
Nanaimo council chose property the city owns at 1 Port Dr. over the option of privately owned property, known as the Howard Johnson site. In doing so, they followed the advice of their consultant.
The city said the Port Drive site — an open and paved area at a former railyard — delivers better certainty around the cost of designing, building and running the centre.
It was anticipated that higher costs would have come with the other site, including buying the property along with additional lots nearby to acquire enough land, as well as building demolition, site decontamination and access.
Council members voted in-camera on their preferred option. Mayor Bill McKay said he did not participate because of a potential conflict.
He has a personal connection with a property owner near the Howard Johnson property.
Anticipated capital costs start at $69.8 million and go up to $86.6 million, depending on the option chosen, says a report from consultant Brisban Brook Benyon Architects.
Project supporters are keen to see a Western Hockey League team established in Nanaimo and play at the arena.
There has been no word on what funding sources, such as a public-private partnership, the city wants to pursue.
A special council meeting is being held in Nanaimo today to vote on the first of three readings of a borrowing bylaw, McKay said.
But he would not release information about how much money citizens will be asked to approve.
If the referendum passes, the borrowing bylaw returns to council for adoption.
Council is considering an arena with up to 5,700 seats for hockey, and up to 8,300 for concerts.
Nanaimo is making arrangements for mail-in advance voting for citizens who will not be in Nanaimo on March 11, McKay said.
Kim Smythe, president and chief executive officer at the Nanaimo Chamber of Commerce, said the business community wants to see a business case, funding model and partnership possibilities.
Pro and con campaigns started gearing up this month.
Critics charge that the project is being “rammed through,” that costs could skyrocket, taxes rise and too much remains unknown, such as site-remediation costs on the Port Drive property.
Supporters argue that the community needs a new arena, that it would bring millions of dollars into the economy, create jobs and help revitalize downtown.
The city’s goal is to have all available information posted on Nanaimo’s website by Feb. 6, said Kim Fowler, chief sustainability officer for the city. Six open houses are planned.
Businessman Don Bonner said he is among about 20 people in the new NoVote2017.com group.
Financial uncertainties are their top concern.
“We are looking at probably in the neighbourhood of $100 million on this thing once it is done,” Bonner said.
“In principle, I am not opposed to the concept. I’m just opposed to the way that this one is being done. I would love to see an extended period of discussion and debate, but we are not getting that. This thing is being rammed through,” he said.
Project advocate and businessman Tali Campbell said: “Nanaimo is growing minute by minute, day by day. We’ve got to look at this investment as a long-term investment.”
It would create construction jobs, support tourism, hotels and nightclubs, and would help revitalize Nanaimo’s downtown, he said.
“There’s a massive economic boost to it.”
A new events centre would bring “millions upon millions of dollars” into the local economy, Campbell said.
Special events, such as concerts, would draw people from throughout the Island, including Campbell River, Duncan and Victoria, he said.
Campbell worries that young people graduating from school may leave Nanaimo to seek work elsewhere.
“We want people to be excited to live in Nanaimo.”
- - -
WHAT’S ON THE TABLE
What’s being considered in discussions about building a new multi-purpose events centre in Nanaimo, based on a report from consultant Brisban Brook Benyon Architects
• Cost, depending on options chosen: $69.8 million to $86.6 million
• Lower-cost project: Hockey seating for 5,700, concert seating up to 7,100
• Higher-cost project: Hockey seating for 5,700, concert seating up to 8,300; additional space for guest services, such as multi-purpose rooms for recreation and meetings, upgraded interior and exterior architecture. The consultant recommends this approach.
• Hockey aspirations: Attract a Western Hockey League team
• Location: City-owned waterfront property at 1 Port Dr.
• Getting approval: Citizens vote in a referendum on March 11.
• Possible opening date: September 2019, after two years of construction
• Building size: about 160,000 square feet
• Design: Based on a traditional First Nations Coast Salish longhouse, featuring wood, glass and a green roof
• Number of events each year: 126, including 39 Western Hockey League games and 32 touring shows
• Market: Nanaimo Regional District had 163,000 residents in 2015; attendees are expected from outside the district
• Construction: About 30 per cent of materials and 75 per cent of labour would be sourced locally.
• Jobs: Venue operations would create 20 full-time and 133 part-time positions; this does not include a professional management company.
• Additional jobs: A WHL team would create 20 to 40 positions, totalling $826,000 in annual salaries and benefits; total operating budget for a WHL team is $2.5 million to $3 million annually.
• Out-of-town visitors: An estimated 27,000 overnight visitors each year staying in paid accommodation, spending about $3.9 million.
• WHL games average attendance of 4,535; Kelowna and Red Deer, with demographics similar to Nanaimo, each draw 5,000-plus.
