Pan Am costs on target: mayor
February 17, 2010
Stories by John Kernaghan
The Hamilton Spectator
http://www.thespec.com/News/Local/article/723240
Mayor Fred Eisenberger says the city can hold the line on its $60-million Pan Am commitment despite pressure on the city's 2015 Games budget.
Cost increases of $16 million for the Pan Am stadium, plus uncertainty about how much the Hamilton Tiger-Cats would chip in for the facility, were at the centre of Eisenberger's visit to The Spectator's editorial board yesterday.
The cost of land acquisition and remedial work at the preferred west harbour stadium site rose to an estimated $26 million from a previously projected $10 million.
That could soar to around $50 million if the worst form of toxic waste is discovered at the site, according to a preliminary environmental assessment report.
And it could be as low as $3.37 million if there's little contamination.
"I don't see the need for additional dollars" above the $60 million committed from the Hamilton Future Fund, a confident Eisenberger said as he prepared to put the stadium location before city councillors tomorrow.
He said the $16-million budget jump could be covered by $5 million from stadium naming rights, at least $4.6 million from a $1-a-ticket surcharge over the 20 years following the Games, and a minimum of $6.4 million from the sale of the Ivor Wynne Stadium site.
He expected Ticat owner Bob Young to stick to a commitment he made last year to provide "in the millions" for a new stadium.
But the city could be looking for $50 million from the private sector to bump the stadium from a 15,000-seat, $102-million facility to a larger home for the Tiger-Cats with at least 25,000 seats.
Eisenberger said the city would immediately sit down with football club officials, assuming city council confirms the west harbour location as the official site.
"The Ticats haven't been able to do an analysis of what the stadium means to them until they have a location," Eisenberger said.
Young confirmed the club's position yesterday in an e-mail.
"The Ticats cannot begin to estimate how big our contribution is going to be until we have a clearer idea of what we and our corporate partners are contributing to."
He added the club's primary contribution will be in attracting corporate support to the stadium project.
"We believe there will be lots of corporate support available," he said.
Eisenberger said the city may also be able to use its $60 million more efficiently by looking at something less than the Cadillac of stadiums.
A business plan analysis by Deloitte noted the Pan Am construction estimates used $6,800 per seat, much higher than Ottawa's proposed MLS Stadium ($5,500 per seat), the planned Winnipeg stadium ($4,500 per seat) and Toronto's BMO field ($3,140 per seat).
But the mayor stressed the stadium needs to be Hamilton's signature facility for a world stage, and also be flexible so it can get plenty of community use.
Costs
Stadium -- $102.3 million
Velodrome -- $11.4 million
Land -- $16 million
Remediation -- $10 million*
*could vary sharply
Total -- $139.7 million
Funding
Pan Am host company -- $63.7 million
Hamilton Future Fund -- $60 million
Naming rights -- $5 million
Ticket surcharge -- $4.6 million
Ivor Wynne Stadium redevelopment -- $6.4 million
Total $139.7 million
Source: Deloitte business plan