Deal to be set in concrete (Penticton)

By John Moorhouse Monday, September 18, 2006, http://www.pentictonherald.ca/article_2015.php
Following the overwhelming show of public support for the South Okanagan Event Centre in Saturday's referendum, Penticton city council's efforts now turn to finalizing contracts with the two private sector companies involved in the project.Council is expected to pass final reading of the borrowing bylaws for the $56-million event centre project tonight, setting the stage for final negotiations with Giffels Partnership Solutions and Global Spectrum.Mayor Jake Kimberley said the city will sit down with Giffels officials next month to work out a final agreement to design and build the event centre. Giffels has stated its bid is firm, provided a contract is signed before the end of October.However, Kimberley added there is a proviso that would allow Giffels to add inflationary costs for steel and other materials. Any additional funding required would be paid through city reserves."We're going to crunch numbers here and I think the end result is we're going to get a top class facility for minimal dollars," he said. The mayor pointed to recent announcements by the Vancouver Canucks and the Swiss national hockey that they intend to use the new Penticton facility for training camps.The final referendum results saw 80.3 of voters in favour of borrowing up to $36.1 million for the project. Kimberley said he's pleased to see the nearly 55 per cent voter support for Global Spectrum to operate the event centre, as well as Memorial Arena and the Penticton Trade and Convention Show. He said Global's contacts within the industry are much more extensive than what the city could attempt to create."I don't think the alternatives are affordable. We are still going to get a report as to what it would cost us to operate it through the city government," he said. "Management companies are driven their entrepreneurial approach to making things work. Governments are driven by making the dollars just pay for themselves, basically."City taxes will increase two per cent, amounting to $9 per $100,000 in assessed residential property value, to pay for the event centre project.The provincial government has agreed to direct $40 million in casino revenues to be utilized over the next 13 years to help pay back the debt. The province's $9.7-million grant announced last year is also earmarked for the project. Among those in the crowd for the referendum results Saturday night were Penticton-Okanagan Valley MLA Bill Barisoff and Okanagan-Westside MLA Rick Thorpe who both applauded the overwhelming show of support for the facility."I was hoping it would be up in the higher numbers because my colleagues in Victoria were waiting to get on the telephone to take the money (if Penticton voters rejected the referendum)," Barisoff said.Judy Poole, president of the Penticton and Wine Country Chamber of Commerce, was also thrilled with the results.Poole noted she recently attended events associated with the Wine Access Awards and the Three Flags Classic motorcycle ride from Mexico to Penticton."Both of those groups have committed to come back here and are excited that they are going to have choices. I think this is such a huge thing for Penticton, just huge," she said.