How The D/W Tunnel And An Arena Delay Help The Engineering Complex

Oh my. We all expected something like this but so soon?

Is the $65 million and counting East end arena going to cost us even more money now? There it was, the headline "New arena behind schedule."

What does the contract provide for if there are delays? Weren't we told some horrific figure per month if this project was delayed when the justification for doing the deal in the first place was given. Lucky that we rushed into signing it eh!

You know, it looks like this is the City's fault:

• "We had planned to be in the ground earlier than we were. This is reflective of our start date, there are no delays in construction said Helga Reidel."

If the City is at fault, PCR may be pretty pleased to be honest. Perhaps they can charge an amount as an extra to their "fixed price" contract because of the City's actions. I sure hope that the City does not cause more problems for the contractor because then we will have to give him even more money.

Oh thank goodness this was announced right AFTER the session on the Operating Budget. Imagine how we might have had to increase the tax rates to pay for the extra costs. Ooooops, I forgot. We cannot do that because Councillor Postma told us that such a thing could not happen.

I guess that the projects steering committee only found out this information yesterday. They would not have held it back from Council would they? Or did Council already know and just forgot to tell us or include it in the Budget deliberations?

Thank heavens that the Star story spared us the details of the amount of any extra cost. It might have ruined my evening when I saw it last night.

Why I remember Don Sadler saying

• "Tuesday's proposed budget is not set in stone. If anything, costs will shrink in the event the contingency fund isn't used up.
  
  "This budget has got a 95 per cent accuracy," he said. "We're able to bring to this community a wonderful complex at the right price."

I know, I know...the answer will be that it's all part of the $2M contingency so let's not fuss too much. That's what a contingency fund is for isn't it?

I was interested that Helga Reidel, general manager of corporate services and project sponsor for the new arena gave us the bad news. You might have thought that such a momentous announcement would have been made by the Mayor or at least by the Councillor formerly known as Councillor Budget. However, if either made the announcement, they might have to take the blame too. Better to let Helga be the bearer of bad news.

What was the excuse:

• "A delay created in assembling property and getting environmental clearance approvals."

Now I do not get this. I hope we get the actual details

What land had to be assembled? I thought it was to be built on the Lear site? That land is already there isn't it since digging has started? Has it been severed yet?

What environmental clearances? There was no EA was there!

Now don't say I did not warn you, dear reader. There was Mr. Sadler saying again:

• "Environmental assessment complete; groundbreaking set for Jan. 31 An environmental assessment has been completed and a clean bill of health given to the new east-end arena site.
  
  "There are no environmental issues," said Don Sadler, the city's director of parks.
  
  The area, which sits behind the Lear plant on Lauzon Road, was inspected for metals and other contaminants, Sadler said."

Do we have another Peace Beacon on our hands

• "Poor soil conditions are being blamed for $300,000 in cost overruns on construction of the Peace Beacon in Dieppe Gardens, according to a council report.
  
  "Every shovel full was another nightmare," said parks director Don Sadler."

And then there was this environmental problem around the same time. Who can forget the extra money to clean up the mess where Mr.Fahri is to build his new condo on the river that the City is paying for.

• "The city will have to pay up to $200,000 to remove a foundation left behind from an old brewery on the Riverside Drive site that is part of a land swap for the new arena development."

Thank goodness that you read this BLOG. You will get the real story here about what all of this means and how it is all tied together.

Again, as I have warned you before, you must read right to the end of Star stories to get the real info. There it was. You have been put on notice:

• "Bad weather and unforeseen factors during construction could possibly push the opening date back even further, said Reidel, although that prospect seems remote."

Expect that the arena will NOT be built for some time. Why you might ask?

$15 MILLION

Here is my speculation. This money, $15M, was "set aside" for the arena when it was to be a P3 and this was the maximum the City was going to put in as its contribution. If the City wants the University to build its huge Engineering Complex downtown, Dwight has made it clear that the City has got to put in some big cash....

Well from where is Eddie going to get the money. How about the arena money...all $15m of it that was set aside.

Stall off the arena errrrrrrrrrr, I mean.... The arena has to be delayed because of external factors so we need to park that $15M somewhere (we don't actually have the money but have to borrow it but that is a small detail). So put it into the University complex or at least say you are going to do so. (I told you that Eddie is a quick-learn! He must remember the St. Clair and University of Windsor deals re Super Build funding)

Now it is the Province that has to ante up or risk losing two seats in the October election. High stakes poker game eh!

But when we need the $15M for the arena, I am sure the financial wizards will find that money in the budget somehow. Actually, once Eddie subleases the entire Detroit/Windsor Tunnel or securitizes the revenues, he will get money from that and we will be fine.

All figured out. No need to be concerned! Right. The Feds will be dumb enough to agree to put in their $75M for the Tunnel...Eddie has this under control. Nothing can go wrong, go wrong, go wrong...