Contract details event centre fees

By WOLF DEPNERWestern News StaffJan 12 2007 http://www.pentictonwesternnews.com/ (FULL STORY)
The private firm hired to build the South Okanagan Event Centre is receiving almost $5 million for managing the project and other professional fees, according to city documents released this week. The public is learning about these figures amid growing media interest and rumblings of legal actions against SOEC critics. The figures are spelled out in the contract the city signed with Giffels Partnership Solutions Dec. 21.

The city released the contract this week after several news organizations including the Penticton Western News asked for a copy in light of new figures that show the overall cost of the project rose to $73.5 million from its original estimate of $56.1 million. The contract pegs Giffels’ professional fees at $2,476,014, with the cost for project and construction management totaling $2,560,266. Peter Hall, senior vice-president and managing director for Giffels Partnership Solutions, said the company had reduced its fees by a total of $1.2 million.
The event centre’s rising cost has prompted criticism and questions about its cause, cost estimates heading into the SOEC referendum Sept. 16 when voters approved borrowing for the facility and the relationship between the city and Giffels. The Penticton Western News has also requested, but so far not received, several documents that could shed more light. They include a preliminary costing document and an updated cost analysis.