Proposed arena has steep price tag
Fort McMurray moving ahead with its plan for downtown facility
Fort McMurray is moving ahead with a proposal for an arena facility that could cost up to $580 million in the midst of an economic downturn stemming from plummeting oil prices.
The Regional Municipality of Wood Buffalo is negotiating a deal for a downtown sports and entertainment centre with Arizonabased International Coliseum Company.
If a plan can be agreed upon, it will be presented to the municipality’s mayor and council just before Christmas.
“People in the community are concerned about the cost of building a sports entertainment centre when there is, I would call it, a recession in the oil business here,” said Ted Zlotnik, the municipality’s director of supply chain management.
“Construction will create a lot of jobs in a badly needed time.”
The total cost of the arena itself, including financing, operations and maintenance, would be $404 million.
The municipality has also asked to see options for an attached parking structure and retail space, which would pump up the price tag to a total of $580 million to be paid for over four decades.
The arena is a sunken bowl design that will house 6,200 fixed seats, but Zlotnik said additional seating could be added to bring that up to 8,000.
A privately owned hotel would be built with interior access to the arena.
The municipality sent out a re- quest for expressions of interest in 2011. Since then, the process was slowed after negotiations with the company originally chosen broke down. ICC was next in line. ICC president Rick Kozuback said in a telephone interview from Fort McMurray he thinks it could be beneficial to build during a dip in the economy.
“It may be cheaper to build the facility now than it might be three to five years from now. There’s probably a number of trades that would be eager to get a contract. Pencils might be sharper.”
Kozuback’s company has also been hunting for a flagship hockey team for the rink. There had been the hope the city could attract an NHL affiliate.
He was in Fort McMurray this week to participate in several public engagement sessions.
Zlotnik said about 40 people in total attended the sessions held over three days. “We were hoping for more.” Coun. Sheldon Germain said he was pleased people in the community were getting an opportunity to have a look at what’s happening with negotiations.
“It’s been a lengthy process getting to where we are, but it speaks to the magnitude of the matter and the careful thought that must be put into the potential undertaking of such a project which must be given due consideration,” Germain wrote in an email.
Zlotnik said an information booth will also be set up at a trade show that started Friday and runs over the weekend, and an online survey will be available for residents to fill out until Oct. 13.
Negotiations with ICC will continue so the process isn’t further delayed.
If the deal is approved, construction could begin in late spring 2016, with an anticipated completion of July 2018.
.There’s probably a number of trades that would be eager to get a contract. Pencils might be sharper.