The Regional District of Central Kootenay board has approved a $2.5 million increase in the overall budget of the proposed Castlegar arena expansion, to be paid for through taxes.
That amount would cover a building permit, moving a watermain and fire hydrant, plus a 10 per cent contingency fund. The RDCK says by paying for these costs through taxation rather than reducing the project’s $15 million design-build budget, they hope to improve their chances of attracting qualified proponents.
“We wanted to ensure the $15 million was there for the design-build,” recreation commission chair Brian Bogle said. “We felt if we dropped it down by the $2.5 million, we may not be able to have a design come in that would be able to be built within that $15 million.”
If voters of the City of Castlegar and Area J approve the second sheet of ice and a walking track in a referendum that could be held in late November, the extra tax impacts would be spread over three years. The cost to the average home assessed at $520,000 would be $168 per year. Bogle said after the $2.5 million is paid off, residents would start paying down the $15 million.
The project’s actual estimated cost is $19 million to $29 million. The RDCK hopes to bridge the gap in part by selling naming rights to the new facility.
The proposed project includes a new arena with an NHL-size ice surface and an overhead walking track connected to the existing Castlegar and District Community Complex.
The project entered the first of two phases of procurement at the end of May. A request for pre-qualification was issued, inviting qualified firms to submit information about their experience and capacity to deliver the proposed project. The RDCK anticipates shortlisting up to two proponents who will then be invited to participate in a request for proposals, expected to be issued in late July.
The RDCK said previously that if the referendum is approved this fall, construction would not start for at least six months. The second ice sheet would replace the recently demolished Pioneer Arena.
