Costs too high for event centre
Stated deficiencies of Eastlink Centre do not warrant expenditure by city of $76 million to $83 million
On Dec. 20, 2017, the Charlottetown Multi-Use Facility Committee issued its report on the need for a new investment to the city’s arena’s. The main recommendation was that Charlottetown should invest some $76 million to $83 million dollars in a new event centre which would include two ice pads. The 59-page report covers many issues; however, I only intend to deal with the “need” for a new complex.
The committee’s recommended strategy is to demolish Simmons arena, re-purpose Cody Banks Arena for dry use recreation and re-purpose Eastlink Centre as a community rink. In addition to the new Event Centre there would be an additional adjoining ice pad, leaving Charlottetown with the same number of ice surfaces that it now has.
The cost of an ice pad is estimated to be from $12 million - $15 million. I have no problem with replacing Simmons and Cody Banks with two new ice pads at $12-$15 million each, which is far more palatable than the estimated cost of a new complex.
So, the question is, do we need a new complex or are two new ice pads sufficient? The task force cites four primary problems with Eastlink Centre, namely, access to the stands, lack of separation of access for players, officials and the public, and the Zamboni having to cross a public walkway. These are issues that have existed since day one but, people have learned to live with them and they certainly do not create a major problem.
The fourth primary limitation with Eastlink Centre is said to be the fact that it only has a clearance of 30 feet to the underside of the steel structure which limits the ability to attract large stage acts. This only becomes relevant if it can be established that large stage acts can be attracted to a new Centre. There are also four secondary deficiencies set forth as to why Eastlink Centre should be replaced.
Overall, the stated deficiencies of Eastlink Centre do not warrant the expenditure by the city of $76 to $83 million. In fact, it appears from the report that the driving force behind the recommendation is not the perceived deficiencies of Eastlink Centre but the desire to have an expanded arena to house large acts.
The task force states that the success of the city will gradually diminish if the Event Centre is not built because of modern replacements being built elsewhere. Reference is made to five event centres across Canada having seating capacities from 4,700 to 9,000. Eastlink Centre has a seating capacity of 3,700. In 2016 Eastlink Centre hosted 154 events, which the Task Force stated was impressive. In comparison, the five larger centres hosted from 64 events to 107 events. The task force did not state what income was generated by the larger Event Centre from high level events, but this should be of prime consideration in any project.
It appears that Eastlink Centre has found a niche in the event market.
An event centre with a seating capacity of only 5,000 will not attract large acts. In Moncton, the new Avenir Centre has a seating capacity of 9,000, Halifax’s Scotiabank Centre has a seating capacity of 10,000 and Saint John’s Harbour Station has 6,300 seats. It is not difficult to surmise where the high-level events will go.
The task force did not identify the potential financial impact of a new centre. In fact, the task force stated, “The Task Force recognizes that debate exists as to the true nature of economic impact associated with large scale public infrastructure projects and their net benefit to the economy given the size of the capital expenditure.”
In the present case, the potential economic impact would be small. Only 1,300 seats are being added over the current 3,700 seats in Eastlink Centre.
In conclusion, let us not forget, that if a new event centre were to be built we would be left with a 3,700-seat arena to be used only as a community rink and during Old Home Week. We cannot always have everything we may want.