County council must tussle with multiple arena cost issues
By Collin Gallant on November 8, 2018.
cgallant@medicinehatnews.com @CollinGallant A study of cost estimates to upgrade the Irvine Ag Complex Arena also highlights potentially competing priorities for Cypress County as it studies partnering on a new hockey rink and community centre in Dunmore. In July, the Prairie Rose School Division laid out its early stages plan to construct a full-sized arena with other flexible-use space near Eagle Butte High School. It would serve a new hockey academy program, but also include community use space in the hamlet that currently has none, and asked county officials to consider funding half the $10 million construction cost and pay part of ongoing operating costs. County councillors, which took that under consideration and launched a formalized business case study, also received the Irvine arena cost estimates this week for consideration. That potential budget was tabled at county council on Tuesday and shows basic repairs could cost $2.1 million. Aside from the potential of $7 million total capital costs, if both projects go ahead, analysts also note that, there is the potential that annual recreation spending costs could rise dramatically depending on their final decisions. “Having two facilities would increase current operating costs from $100,000 to $400,000 (total across both facilities),” the report states. School board officials say their intention is to keep the Irvine arena financially viable. Junior high academy students in that town use it, but an arena in Dunmore is needed for high school students in coming years. PRSD assistant superintendent Reagan Weeks told the News this week the proposal is currently in the hands. The formal business case study is underway, she said, and they are awaiting the results. “It’s not a full feasibility study but enough of a study to ensure they have good information on all that’s in play,” she said. According to this week’s report, the major item at Irvine is work on the ice-plant, estimated at $1.5 million. Replacement of ice and curling labs would total $380,000, and a host of other mechanical and structural work bring the basic budget total to $2.14 million. The facility was built in 1985, has since no major work since and is performing well, but requires repairs. Adding space, for community use, a library or seniors facility at the site, or incorporating aesthetic upgrades could move the budget to more than $3 million. In terms of operating funds, the county provides $100,000 per year to the Irvine Ag Society, which runs the facility and the county grant makes up for an operating loss. The initial estimate from PRSD is that its facility would run at an operating loss of $85,000 per year, and they’ve asked the county to consider a grant to make up the difference. Administrators state that based on operating figures from two arenas in the city of Medicine Hat, arena loss would be closer to $200,000 per year. Compounding that, the report states, if Dunmore draws user groups away from Irvine, the revenue gap there would widen, thereby requiring a larger outlay there. The PRSD proposal includes the school board supplying land and utility service for the $10-million project, located on the Eagle Butte’s underused baseball field. Fundraising of $1 million and borrowing would complete their about $3 million cash investment. The county was asked to consider providing the remainder. 20
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