Cost of new arena keeps on rising
Land cost not included in $10.6-million twin-pad tab

by Richard Gleeson
Northern News Services

NNSL (Dec 03/97) - The price of building a new twin-pad arena and community centre complex jumped by more than a million dollars in a matter of minutes Monday night.

At a special public meeting called to discuss the facility, city staff revealed the $10.6-million price tag does not include all costs.

Ald. Bob Brooks questioned staff about an inconsistency he saw in figures presented for the development of one of the sites.

"Site costs were never included in the $10.6-million price," said director of community services Max Hall.

"In that case, I'm a little confused," said Brooks. "We've been told all along this was a $10.6-million project, and suddenly it's jumped from $10.6 million to $12 million."

Though the jump seemed to catch Brooks and other members of council by surprise, city administrator Doug Lagore said it should not have.

"It's always been clear that the budget doesn't include site development costs," Lagore said.

There is no mention of additional costs for the project in city's 1998 draft budget, which allots $10.65 million for the project.

A breakdown of costs presented Monday also did not include construction management and architectural contracts the city has signed for the project.

The cost of the facility, and the possible failure of a plebiscite to OK borrowing for it, was the focus of aldermen and members of the public.

"When we add on site costs, money to Yk (Education District) No. 1 and the youth centre, when we take a look at the sites left, we're looking at a debenture of $4.5 to $6 million," said Ald. Robert Slaven.

"And when you talk about a debenture of more than $5 million, it's going to go down in flames."

Resident Ray Pickett went one step further, imploring council to "pay for it before we build it."

Pickett argued prudent spending is required in the face of the falling price of gold and government downsizing associated with territorial division.

Ter Hamer, president of the user group Sport YK Plus, also urged restraint. He said a $9.5-$10 million plan presented at the meeting by Bellanca Developments was more than the city could afford.

Hamer said a proposal that his Wade Hamer Foundation made years ago for a bare-bones, twin-pad arena teamed with a youth centre to be established at Akaitcho Hall, would have no trouble winning ratepayer approval.

"If you were to say nothing, the Wade Hamer Foundation proposal or a Cadillac, I think the Wade Hamer proposal would win by a mile."

Resident Vincent Gauthier took exception to Lagore's comment that the facility would place no additional tax burden on residents.

The administrator explained payments on debt would not exceed the $500,000 in block funding the city has been saving each year for the facility.

"That's all well and good if our tax base remains the same," said Gauthier, later adding, "I will not, personally, support a debenture of $4 million."