Event centre the best deal for residents

Penticton western news= Sep 15 2006 EDITORIAL
Penticton residents you are the next contestants on Let’s Make A Deal. And the question that will be asked of local voters tomorrow is whether we want to walk away with the $49.5 million of provincial funds the city has in hand, or risk it all for what’s behind door No. 2. Saturday’s South Okanagan Event Centre referendum asks Penticton residents if they approve borrowing $29 million for the construction of the facility as well as an additional $7 million for site servicing. Construction of the event centre is set at $39.6 million, with another $16.56 million set aside for other site work, field relocation and contingency costs. That $56 million total pricetag is enough to cause some concern for almost any taxpayer. But when you consider the provincial government has rolled out a pledge to cover nearly $50 million of those costs, the concerns quickly evaporate. That is why Penticton’s mayor and the entire city council, along with the vast majority of the local business community, tourism operators and primary users of the proposed facility are urging residents to vote for the offer on the table. Project opponents, led by the Coalition for an Affordable Public Event Centre, are asking residents to reject the proposal in the hopes that a better deal is around the corner. While it is always good to shop around, there comes a time when you have to make a commitment or risk seeing the deal fall through. We are convinced that time is now. Maybe it is possible to shave a few million off the cost of a new event centre. Perhaps we could use cheaper seating and hope the audience doesn’t mind being uncomfortable for a few hours. Why not cut back on washroom facilities and let people endure long lineups? Or instead of an esthetically pleasing facility that will fit in with the surrounding area, how about just going with a giant concrete box? Any or all of these measures are bound to save the city a few million. But it is completely unrealistic to believe a bare-bones facility would qualify for the same level of provincial funding, creating the likely scenario where the city is spending more and getting less. SOEC opponents also caution residents that cost overruns could push the $56 million total pricetag even higher. What they don’t explain is how delaying the project a year or two in a time of spiralling construction costs will make the project more affordable. The event centre is expected to create hundreds of local jobs and bring upwards of $50 million annually into the city’s economy. And with the province’s funding commitment, all that can be ours for a cost of $7 million to local taxpayers. Should we risk that for an uncertain fate? Tomorrow, you decide.

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By WOLF DEPNER News Staff Reporter Sep 15 2006 Penticton Western news=
Mayor Jake Kimberley is looking for the support of 70 to 80 per cent of voters in tomorrow’s referendum on the South Okanagan Event Centre. “That would show clear support,” he said.Anything less would show some concerns that would need to be addressed, said Kimberley. He said the city will go “back to the drawing board” if voters reject city plans to hire a private management company to operate the South Okanagan Event Centre in tomorrow’s referendum. Kimberley made that promise yesterday in an interview leading up to Saturday’s referendum which runs from 8 a.m.-8 p.m. at the Penticton Trade and Convention Centre. The referendum will ask residents in a binding question whether they approve the city borrowing $36 million to help pay for the facility estimated to cost $56.1 million. The city plans to pay off that debt (as well as a smaller debt of $3.2 million for field replacements) with a $40 million “revenue stream” of casino money. Other funding sources include a provincial grant worth $9.7 million and property taxes. A second non-binding question will ask residents whether they approve the hiring of a private management company — a consortium headed by Giffels Partnership Solutions — to operate the new facility, as well as the convention centre and Memorial Arena. “If there is a negative, (council) will go back to the drawing board,” said Kimberley.