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
Grandparent scam: London, Ont., senior beats fraudsters not once, but twice
It was a typical Tuesday for Mabel Beharrell, 84, until she got the call that would turn her world upside down. Her teenaged grandson was in trouble and needed her help.
Deaths of 4 people on Sask. farm confirmed as murder-suicide
The deaths of four people on a farm near the Saskatchewan village of Neudorf have been confirmed a murder-suicide.
CRA no longer requiring 'bare trust' reporting in 2023 tax return
The Canada Revenue Agency announced Thursday it will not require 'bare trust' reporting from Canadians that it introduced for the 2024 tax season, just four days before the April 2 deadline.
Full parole granted to man convicted in notorious 'McDonald's murders' in Cape Breton
The Parole Board of Canada has granted full parole to one of three men convicted in the brutal murders of three McDonald's restaurant workers in Cape Breton more than 30 years ago.
Incident on Calgary's Reconciliation Bridge comes to safe resolution
Nearly 20 hours after a man climbed and remained perched on top of the Reconciliation Bridge in downtown Calgary, the situation came to a peaceful resolution.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
George Washington family secrets revealed by DNA from unmarked 19th century graves
Genetic analysis has shed light on a long-standing mystery surrounding the fates of U.S. President George Washington's younger brother Samuel and his kin.
'We won't forget': How some Muslims view Poilievre's stance on Israel-Hamas war
A spokesman for a regional Muslim advocacy group says Conservative Leader Pierre Poilievre's stance on the Israel-Hamas war could complicate his party's relationship with Muslim Canadians.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.