May 7, 2008

Sports Infrastructure

Edmonton rejects public-private partnership for recreation complex

RICHARD GILBERT

staff writer

Edmonton City Council decided to move ahead with the construction of a new multipurpose recreation centre under a construction management services contract instead of a private-public partnership.

At an Edmonton City Council meeting on Dec.18, 2007, a motion was passed to construct the roughly $100 million recreation centre and arena complex to serve the citizens of Southwest Edmonton.

At the time, council attempted to negotiate and finalize all necessary agreements for the design, build, finance, operation, and maintenance of the centre.

However, following the meeting, city administration was unable to negotiate the necessary agreements for the centre in a form and content acceptable to the city manager.

In response to this situation, Edmonton City Council unanimously approved a recommendation on April 16 to enter into an agreement for construction management services with Stuart Olsen to build a recreation centre near Terwillegar Drive and 23rd Avenue.

“Following extensive review and assessment, the City of Edmonton has discontinued P3 negotiations for the design, build, finance, operation and maintenance of the Southwest Community Recreation Centre,” said a project update released by the city on April 17. “An acceptable agreement on price and program could not be reached with the P3 proponent.”

According to a city council report, Stuart Olsen submitted a proposal for the Request for Proposal (RFP) for construction management services for the Southwest Community Recreation Centre and was involved as a member of the team that was pre-qualified in the RFP for the P3 for the arena complex.

Both of these RFP’s were subsequently cancelled.

The report also said that entering into an agreement for construction management services to build the recreation centre will enable an earlier construction start date, reducing exposure to cost escalation factors, and offering the best overall value.

The contractor will also pursue the design of the arena complex while construction commences on the recreation centre.

The construction of the recreation centre will be based on an existing design prepared by Sahuri and Partners Architects.

“Design work will now begin, with the goal of designing the arena component and integrating it with the recreation centre component design to achieve maximum design efficiencies,” said the project update. “Within six months, city administration will bring forward to city council a report that will outline the design and financing plan for a four-pad arena complex, as part of the city’s next three-year capital plan.”

The construction boom in Edmonton has impacted the cost of the project, which has increased to $106.4 million for the construction of the recreation centre component and the design of the arena complex.

As a result, city council has also approved a recommendation that the Southwest Community Recreation Centre budget be increased to $106.4 million, using tax supported debt as the source of funding.

Work could start as early as May 2008 on the construction of the recreation centre component and could be completed by spring 2010.

Upon completion, city staff will operate and maintain the centre.

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