Stadium site costs set to double
February 12, 2010
The Hamilton Spectator
http://www.thespec.com/News/Local/article/720781
TOURISM HAMILTON'S executive director David Adames will make recommendations to city council next week about how to acquire properties on a three-block parcel of land in the west harbour where a Pan Am Games stadium has been proposed. A business report says the costs of acquiring and remediating the land could add $10 million to the projected cost.
Pan Am business plan backs west harbour site
The west harbour is the right site for the Pan Am Games stadium, but it will cost at least $10 million more than forecast, a business plan reveals.
The report by consultant Deloitte focuses on development of the site at Bay and Barton and says land acquisition and soil remediation could double the $10 million approved by council last February, sources told The Spectator.
But the bill could run even higher as some privately held properties have not been tested for soil contamination.
The plan, which is available to city councillors today, also lays out ways the city can cover those added costs.
The jump in price didn't deter the Deloitte report from recommending the west harbour over the airport area as representing the best business case for a stadium.
The terms of reference for the Deloitte plan were canted toward the west harbour site, as it was presented as the preferred location.
The terms of reference also noted $10 million "is likely insufficient" and asked Deloitte to examine sources to cover the increased costs.
City council committed to $60 million early last year as its contribution to a $102-million, 15,000-seat stadium and $11.4-million velodrome.
It is expected the business plan will warn tight timelines to meet the scheduling needs of the Toronto 2015 organizers could be compromised by environmental and planning appeals and hearings.
Mayor Fred Eisenberger, who anticipates the Deloitte team will endorse the west harbour, believes the provincial government, as lead partner in the Pan Am initiative, would find ways to speed up proceedings.
Pan Am plans call for almost $700 million in sports infrastructure to be built by July 2014, a year in advance of the Games.
The Deloitte team was also asked to gauge private-sector interest in contributing to a $50-million upgrade needed to increase the stadium to 25,000 to become home to the Tiger-Cats.
Deloitte's business plan goes to city council for consideration Feb. 18 with a blueprint on how to proceed.
Hamilton's stadium plans must be endorsed by the Toronto 2015 management team by the end of the year.
In 2011, Pan Am facilities will be designed, then building contracts awarded, with construction in 2012 and 2013 and completion in July 2014.
A $35-million pool at McMaster and $23-million soccer centre for Burlington are also in the Pan Am blueprint.
U.S. Steel (former Stelco)
Size: 2.71 acres
Use: Vacant
Acquisition status: Recommendations will be made to city council on an acquisition process.
B & M Metal Recycling
Size: 5 acres
Use: Processes copper wire, insulated aluminum and lead cable
Acquisition status: President Kathy Belanger is not commenting until the company hears from the city.
Former Rheem Canada
Size: 4.06 acres
Use: Not in use
Acquisition status: The city purchased the former water-heater plant last year.
Eight homes
Use: Residences
Acquisition status: Recommendations will be made to city council on an acquisition process.