Experts toil over multiplex options

The planning for a new multi-purpose event centre in Thunder Bay is turning towards feasibility and public opinion on everything from location to size, and who the main tenant should be.
Phase two of the study started this week, with a team of consultants visiting the top three site locations and outlining the direction the study will go.
“It’s part of the process of getting to the point where we get our homework done and our due diligence,” said city manager Tim Commisso. “Phase two will narrow down the site, design, firm up the program, decide how many events is reasonable, and financing. It’s all those components we need to put together to know where we stand.”
There have been no decisions made yet, but Commisso said they need to be in a position where the project is ready for construction when the time comes to ask for financing and go forward.
The locations being considered for the centre are the north-side downtown waterfront area, the Thunder Bay International Airport and the Innova Business Park.
In terms of financing, Commisso said they will be looking to the provincial government, the private sector and the city’s reserves. He said the city would leverage their share.
The study’s team is looking into business, design, cost and revenue, location, the environment, parking and transportation.
The team includes Conrad Boychuk, project leader and head of CEI Architecture’s Venue Development group. He said he lived in Thunder Bay for 20 years and went to Fort William Gardens for many family events, but the time has come to construct a centre for multiple events.
“In terms of, does the city need one and is this the right market? I say definitely,” said Boychuk, who now lives in Southern Ontario. “Fort William Gardens is a hockey building. This city needs a multi-purpose facility and the Gardens doesn’t do that.”
Boychuk said sports will be a critical component of the centre in terms of private suites and the viability of the building. Few people will rent a private suite unless there’s something they can depend on like games, which make up 40 nights a year, he said. Beyond that, he said a centre needs up to 80 events a year to make a building profitable. Boychuk said many of those are community-building events.
“The facility needs to cater to that broad spectrum so they can host as many events as possible,” Boychuk said. “But you have to remember sports is one of the cornerstones.”
In terms of location, he said all the proposed sites can comfortably house a 6,000-seat spectator facility.
Ron Biduka, head of PricewaterhouseCooper’s Deals Market segment, said he will be looking at where the money is coming from to support this facility. He said a venue such as this generates revenue from rent, ticket sales, advertising and touring shows. He said he will be quantifying the finances and looking at where the money will come from, how much it will cost to operate the building and develop a business plan to show how it can make money and get financing.
So far, he said Thunder Bay can support a centre of that nature.
“Certainly this market is large enough to support that,” Biduka said.
He added that a building of that size would need a main attraction, a hockey team, to get people to support the facility.
“That will give you a lot of your day-to-day operating revenue, then supplement that with concerts and special events,” Biduka said.
Buildings like the multi-purpose centre could generate as much as $5 million in revenue, he said. After expenses, their net income could be enough to break even, or generate around $500,000 to $1 million in profit.
The size of the rink they are planning, he added, could easily support an OHL or AHL league team or the Lakehead Thunderwolves.
The study team also includes Adam Rose, principal manager of engineering services at True Grit Consulting. He will be leading a team focusing on environmental assessment as well as providing an assessment of existing infrastructure.
Alun Lloyd, a principal with the BA Group — a consulting firm specializing in transportation — will be providing expertise in traffic and parking at all three sites.
The team will be hosting a public information session on their study on Feb. 29 at the Italian Cultural Centre. The meeting will include concept designs and comments on the economic impact, traffic issues, cost implications and site selection criteria. Commisso said they are planning another one in April.
A final report will be presented to city council in May.