Sunderland Arena Project

• 6 new dressing rooms (requested scope change/flexibility- range of 4-6 and keeping 2 as fully accessible)
• Community use room (required- size not determined and dependant on budget)
• Storage (required- size not determined and dependant on budget)
• Ice resurfacer room (required as part of the grant)
• Replacement of concrete pad (required as part of the grant)
• Expansion of ice surface to regulation size (requested scope change/flexibility- increase but size to be determined)
• Updated refrigeration system (required as part of the grant)
• Reconfigured seating around the ice surface (will be determined by changes to the ice surface size)
• Renovation of the lobby and current dressing rooms to create a larger lobby (required)
• New food booth (required as part of grant)
• Second floor viewing (required)
• Accessibility (required)

Timeline of the project:

• May 2021, Grant approval 
• August 14, 2023 project approval- with range $9,200,000 to 10,000,000 depending on scope. Council Report
• September 2023, Formal Application to descope part of the project to meet budget (with range $9,200,000 to 10,000,000 depending on scope) - current activity
• Dec/Jan 2023/2024, Formal descope approval expected  (requiring Provincial and Federal Approval)
• Procurement of project management and design build contracting currently being investigated.

• The Sunderland Lions Club has notionally indicated that they would be interested in contributing to this project, based upon a number of expectations for the project.

• One time fees collected from developers at the time a building permit is issued. These fees help pay for infrastructure required to provide municipal services to a new development.  The use of DCs is to ensure pressures of increased development doesn’t fall completely on the existing tax base and ensures services keep up with where growth is occurring.  The funds are contributed, however, become Township revenue to be used to support development.  The Township, in accordance with the Development Charges Background Study, determines how the Development Charge contributions will be allocated.

• The Sunderland project was placed into the 2019 DC study in the event that the grant was not successful.  

• Even though the grant was approved the Township will be able to use a portion of DCs to assist with this project.  Significant time was spent to determine how much of this project was DC eligible.   The DC portion is likely going to be 60 to 65% of the net cost after the grant is deducted from the total cost.  The amount that can be used must be substantiated by growth.  The Township has along list of underfunded projects and Development Charges are one source of revenue that helps support growth related projects.  By using development charges where possible it lessons the tax burden that would result from acquiring new debt for the project.  Borrowing costs have escalated with inflation.  Borrowing from committed reserves results in debt payments even when we borrow from our own reserves.   We are ensuring that we keep borrowing to a minimum on the project that already has exceeded the budget that was set when the grant was submitted. Our only other option would have been to keep the budget as it was but the project would have suffered due to escalating costs and the reduction of external funding that likely will not happen well into the future.  

• Development Charges are received with each new development (residential, non-residential, etc.) within the Township.  If the Township has low development, the prospects for future Development Charge collections to support growth will be limited.  The Township needs to ensure a balance in their DC projects and focus on projects driven by growth.  

• In 2024, the Township will be required to complete another DC Study.   This new study will be driven by the outcomes from the 2023 Parks and Recreation Master Plan (among other inputs).   These will be based on need projects that are driven by community growth.  
• The Lions Club has notionally indicated that they will contribute between $500,000 to $800,000 for this project, however, the confirmed funding level is dependent upon final approved project scope   The Township is aware that there may be funding of approximately $576,000 owed, as a result of a recent Ontario Land Tribunal Decision with Kaitlin Corporation, however, the funding, if received, would flow between the Kaitlin Corporation and the Sunderland Lions Club.  There is uncertainty over the timing of this agreement as any potential payments are tied to the issuance of building permits.  There is a delay in the issuance of building permits as there are issues which must be first resolved regarding water and sanitary servicing.  As a result of these timing issues, the Township does not believe that the potential funding from Kaitlin can be counted on as a funding source currently for the Sunderland Arena and Expansion Project.

Project Next steps:

1. Meet with facility user group appointed member(s) to outline the components of the project and what is required and what can be changed to meet the project budget.
2. User groups to meet with their internal team to identify their priorities from the descope list of option. Selecting from most important to least important.
3. Hire the project management firm
4. Project Management Team and Township Team to procure the project with expected start date spring of 2024
5. Estimated timeline:  18 months from start of construction.