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
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.