Kingsway Entertainment District cheaper, offers more economic benefits, report concludes
An updated report has concluded the benefits of building a new entertainment district on The Kingsway offers the most economic benefit to Greater Sudbury, at a lower cost.
City council asked for the report from PricewaterhouseCoopers, the firm that did the original analysis four years ago. The original analysis said downtown offered a slight advantage over the Kingsway, because the economic benefits were more certain downtown.
City council backed the Kingsway Entertainment District in a 2017 vote, setting off a series of legal challenges that wrapped up in December 2020. With COVID-19 pandemic in full swing, causing significant economic disruption, councillors asked PwC for an updated analysis.
A report headed to city council June 16 concluded the case for the KED is stronger now than in 2017.
"New aspects of the current, approved Kingsway site makes it the approach that offers the highest economic benefits and the lowest cost," the analysis said.
"Agreements now in place between the city, Gateway Casinos and the hotel developer that did not exist in 2017 offer the highest direct financial returns."
Building a renovated arena downtown would cost between $125.4 million and $128.6 million, the report said, not including the need for a parking structure. That compares to $113.8 million for the KED, which does include parking. A renovated arena also couldn't host several major events that could be held at the KED.
Building a new arena downtown on a new location would cost about $115.8 million, the report said, but comes with some complications.
"Some of the lands for the downtown site are privately held, and the city no longer holds options on these properties," the report said.
"As a result, staff has included an acquisition escalation factor in the outlined costs. In addition, some of the commercial properties at this site have made building improvements since 2017, which will further escalate the cost identified. If these owners are not willing sellers, then any scheduled construction will be further delayed."
A remodelled Sudbury Arena would not only be more expensive, it would require a higher annual operating subsidy, the report said.
"It would not be able to offer the same range of events or visitor experience as a new event centre," the report said.
"Development of this option would also be complicated by a reduction in events and potential relocation of the Sudbury Wolves and Sudbury 5 for two seasons at additional expense to the project."
The market for the KED, however, looks positive, the report said.
"The effects of COVID-19 create unique opportunities for mid-sized event centres to attract performances that might not traditionally have considered them as suitable locations," PwC said.
"This is due, in part, to the effects of COVID-19, as both performers and patrons rebound from the effects of worldwide lockdowns and relatively low economic activity. Early indications show significant pent-up demand, with performers competing for the same venues showing a willingness to expand their reach by selecting mid-size venues that would not normally have been part of their tours."
Direct benefits to Sudbury are also higher with the KED, with expected revenue of about $2.665 million in property taxes and the creation of 1,500 jobs.
"From a cost and timing perspective, the Kingsway location presents the lowest risk," the report said.
Read the full report here.
CTVNews.ca Top Stories
Justin Trudeau to step down as PM following Liberal leadership race
Prime Minister Justin Trudeau is stepping down as Liberal leader, and is proroguing Parliament as the Liberal Party of Canada embarks on the journey to replace him.
Trudeau resignation: recap key moments, analysis, reaction as it happened
Prime Minister Justin Trudeau has stepped down as Liberal leader. Here's a recap of key moments, analysis, and reaction as it happened.
Justin Trudeau steps down as Liberal leader. Who are the top contenders to replace him?
With Prime Minister Justin Trudeau's resignation as Liberal party leader, several well-known political faces may be waiting in the wings for their opportunity to take his place.
'Together, what a great nation it would be': Donald Trump, Elon Musk react to Justin Trudeau's resignation
Amid news of Prime Minister Justin Trudeau's resignation as leader of the Liberal party on Monday morning, reactions from prominent figures began piling in.
Trudeau says Parliament is 'prorogued' until March. What does that mean?
In his resignation speech on Monday, Prime Minister Justin Trudeau announced that Parliament would be prorogued until March, which will give the Liberal party time to find a new leader ahead of an expected confidence vote and early election.
Justin Trudeau is resigning, what will be his legacy? A look back at key political eras
In a seismic political move, Justin Trudeau has announced his intention to step down as leader of the Liberal Party of Canada and prime minister, once his successor is named. This decision comes after more than nine years in the country's top job and nearly 12 years at the helm of his party.
Justin Trudeau resignation: Here's what he said in Ottawa today
Prime Minister Justin Trudeau delivered a speech about his political future Monday morning outside Rideau Cottage in Ottawa. Here's the message he delivered to Canadians.
Alberta government signs new oil and gas agreement with Enbridge
The Alberta government has signed an agreement with Enbridge that Premier Danielle Smith says will increase exports of the province's heavy oil to the United States.
Trudeau leaves mixed global legacy as he exits during turbulent time, analysts say
Prime Minister Justin Trudeau will leave the world stage with a legacy of promoting feminist causes and focusing on Asia, along with criticism that Canada's actions fell short of the government's rhetoric.