Former mayor 'stunned' by SOEC costs

By WOLF DEPNER Western News Staff Jan 03 2007 http://www.pentictonwesternnews.com/
The former Penticton mayor who helped launch the South Okanagan Event Centre says he was “stunned” by news the project cost had escalated to $73.5 million and blamed the current political leadership for the escalation. David Perry made that comment after the city last month told citizens SOEC costs increased by more than $17 million. Mayor Jake Kimberley — who defeated Perry during the 2005 municipal election partly over the SOEC — blamed the cost increase on inflationary pressures in the construction industry, but repeated earlier promises that the city would not raise the share of funding for the project coming from property taxes. But this promise does not appear to appease Perry who points to promises made by city before the Sept. 16 referendum when the public approved the construction of the facility and its management by private consortium headed by Giffels Partnership Solutions. City advertisements before the referendum stated the total project would cost $56.1 million with a guaranteed price of $39.6 million for the actual facility. “This should have never got to this point and I feel that the citizens who voted so strongly for this project must now be wondering what has happened,” said Perry. He added that the project could have been underway by now. “The only things I can reflect on is that by December 2005 the previous council would have been very close to signing an agreement to have the centre constructed at the then-current rates and underway by last July,” he said. He added that the city also had a strong relationship with the then-Liberal federal government prepared to contribute “their share of money” to the project. “What has happened in the meantime is that the mayor had a secret committee spend seven months reviewing the project while the construction costs escalated and we saw a federal (Conservative) government elected that has no intention of delivering on economic development initiatives in this riding,” he said. Perry also raised questions about the timing of the announcement coming only days before Christmas and the credibility of Giffels. "I have been stating from the beginning that the mayor had pushed for the wrong proponent to build the centre,” said Perry, who favoured the bid from Global Entertainment Corporation headed by former Penticton Knights coach Rick Kozuback, as well as the co-founders of Boston Pizza, Jim Treliving and George Melville.