Rising costs fail to diminish SOEC support

http://www.pentictonwesternnews.com/ Jan 5
Chamber president convinced event centre is still worth the price A local business leader still supports the South Okanagan Event Centre despite cost escalations. Penticton and Wine Country Chamber of Commerce president Chris Browne said news that the SOEC cost rose by more than $17 million to $73.5 million “initially surprised” him. “But looking at the bigger picture, when we consider the amount of government funding that has come through for this, I am still pleased that the project will be going ahead,” he said.

Close to $50 million in funding for the facility comes from provincial sources — a $9.7 million grant and an un-guaranteed $40 million “revenue-stream” from the B.C. Lottery Corporation. Other funding sources include city reserves and money raised through property taxes.

City officials acknowledged last month that the cost escalation will impact the city’s ability to pursue other projects for at least three years. But they also insisted that the project remains affordable and predicted that it will help generate substantial revenues that will benefit the community for decades. Browne’s defence of the centre comes as public criticism of the SOEC is growing. Former mayor David Perry — who helped launch the facility and secured some of the funding for it — recently joined the chorus of critics voicing their displeasure through letters to the editor.

Perry said he was “stunned” by the cost increase and blamed the current administration of Mayor Jake Kimberley for the cost overrun. Perry also suggested that the project could have been under way now at an affordable cost if the city had chosen Global Entertainment rather than Giffels Partnership Solutions, whose credibility he challenged. City advertisements before the Sept. 16 referendum stated the total project would cost $56.1 million with a guaranteed price of $39.6 million for the actual facility, based on a verbal promise made by Giffels at a special meeting last June. Giffels and the city, citing rising construction costs, have since distanced themselves from this apparent promise.

Browne said he could not comment on the details of the negotiations between the city and Giffels because he was not privy to them. “But once again, I was surprised that the terms had change so much,” he said. “I can’t really say anything bad or negative about it because I do not have that inside information.” But Browne believes that last month’s contract signing between the city and Giffels offer certainty. “This is what we got and this is what we are paying for,” he said.

He also supported plans for a new $3.5 million health facility next to the SOEC. While the so-called Wellness Centre was dropped from the original SOEC design because of the rising construction costs, the city is planning to borrow the money for the facility separately. Browne said it will be a “welcome addition” to the community. All things considered, the SOEC is still “a wonderful project” for the city, he added.