"Enhanced" event centre adds $1-million onto bill

By JOHN MOORHOUSE February 4, 2008 Penticton Herald

Late enhancements to the South Okanagan Event Centre will add almost $1 million onto the final price tag. But city officials say the additions, unanimously approved by Penticton council Monday, won‘t impact taxpayers‘ contribution towards the facility. The additional funding will come entirely from casino revenues. Following a directive from the provincial government that it wants more wood used in the complex, council agreed to a number of enhancements to provide more wood content in the entrance way and link to the nearby Penticton Trade and Convention Centre. Improved sport lighting/shade systems and fibre system information technology will also be added. “We‘re not building a hockey arena,” said Jack Kler, the city‘s director of corporate services. “We‘re building an event centre that has a dual functionality of holding first-class events as well as being able to provide hockey.”

Total cost of the enhancements is estimated at $955,000 bringing the total cost of the project to $78.4 million. More than $1 million in other suggested improvements were either postponed to 2009 or not recommended by city staff. Kler said the money comes from $1.1 million in unused debt capacity for the project plus $500,000 in the city‘s casino fund reserve. He noted the casino revenues are only available for capital projects and cannot be directed into general city revenues. Mayor Jake Kimberley said the government‘s directive to include more wood products in the event centre was a main reason behind the enhancements. Initial plans for the event centre called for the extensive use of wood in its construction, which the government suggested could help promote B.C.‘s forest industry for the 2010 Winter Olympics. “It was not overlooked initially,” the mayor said. “It was looked at as a cost issue back then and the province and the premier himself is somewhat insistent that we include those products.” “I think it softens the whole approach to the event centre and makes it a much nicer entranceway, which is what is going to be the focus from both sides of the building (the main arena and smaller community rink),” he said. Kimberley said the only alternative is to build a second-rate facility. Wood features planned for the event centre will be manufactured by a Summerland firm. The Penticton Indian Band has also been invited to provide poles, wood carvings or other First Nations artwork for the facility. Coun. John Vassilaki worried that the public could wrongly interpret the added costs to the project. He pointed to recent rumours within the community that the project cost could top $100 million. However, Kimberley promptly discounted such allegations. “They‘re totally unfounded,” he said. “There was a contingency built into this project that accommodates this kind of expenditure.” Coun. Rory McIvor said the financial impact from the enhancements are “modest” and suggested council should “do it right.” The additional features are not expected to impact the scheduled completion of the event centre. The latest reports from contractor Giffels Partnership Solutions indicate the project remains on time for a September opening.