City Council Endorses $57 Million Multi-Use Sport and Event Centre; Council to Commit 33 Per Cent of Cost Towards Project
/City Council endorsed a financial structure for the new Multi-Use Sport and Event Centre (MUSEC) project to replace the Peterborough Memorial Centre at their meeting on Monday night.
Mayor Jeff Leal showing support for the new centre at his initial press conference at the Peterborough and Kawartha Chamber of Commerce on Monday. Photo by David Tuan Bui.
Council endorsed a motion to direct the following:
That Council commit 1/3 of the cost, approximately $57 million, towards the Events Centre project;
That staff be directed to provide a report identifying the funding plan to finance this $57 million commitment including amendments to the City's debt limit;
That staff be directed to initiate proactive advocacy and explore options to acquire the remaining 2/3 of the cost, approximately $114M, from the Government of Canada, Province of Ontario, County of Peterborough, private sector partners, fundraising, naming rights and sponsorship opportunities, and non-debt supported sources;
That staff be directed to provide Council with a report detailing options for funds from non-debt supported sources; and
That $1.7M be pre-committed in the 2027 budget to include a project manager position, site studies and preliminary consultant services.
Staff provided a number of options related to the approval and construction of the MUSEC in the report for Council's consideration. These options range from not proceeding to partial and full financing approval.
Council has previously approved the MUSEC's preferred location at the existing City bus garage site on Townsend Street.
The Multi-Use Sport and Event Centre (MUSEC) project was initiated in 2018 with two feasibility studies. Previous studies have considered features, the expected project timeline, cost-benefit analyses of upgrades to the current Peterborough Memorial Centre versus a new building, a market analysis, and locations.
Council has previously considered developing a new sports and entertainment complex to replace the Peterborough Memorial Centre and support economic development, tourism, and community recreation objectives. Preliminary estimates indicate a total project cost of approximately $170 million, inclusive of construction, soft costs, and contingencies.
The current report evaluates options for next steps with information on various considerations, such as:
Debt capacity
Ability to finance the City's ongoing capital program
Long-term financial risk and sustainability
Municipal tax rate
Credit rating
Three financing scenarios are analyzed in the report:
Determining the maximum amount the City can reasonably afford within the City’s current debt capacity and seeking funding partners for the balance
Financing the full project cost by increasing debt issuance up to the Provincial Annual Repayment Limit
Funding $100 million through the sale of City assets and debt financing the remaining $70 million
Options presented for Council consideration include:
Approve the project moving to a Concept Confirmation and Further Site Development Phase - funding the next phase of design specification, without a commitment to move forward with the full project
Approve financing to the maximum of the existing debt limit policy and seek partnerships - committing $30 million debt capacity toward the project, and pursuing private sector partnerships to finance the remaining portion of the project
Approve financing for 33% of the project and seek remaining funding from other levels of government - committing $57 million towards the project that would require amendments to the City's debt limit, proceeding to the full design phase so that the project can be presented for funding opportunities to other levels of government, pre-committing $8.5 million in the 2027 Budget for the necessary next steps
Financing the entire project through a combination of Asset Sales and debt servicing - a report will be provided to Council at a later meeting on the potential sale of City assets that could be used toward the costs of the MUSEC
Full approval and financing of the project - financing the entire $170 million project cost with amendments to the City's debt limit and pre-committing $8.5 million in the 2027 Budget for the necessary next steps
Do not proceed any further with this project
