October 19, 2009

Sports and entertainment

Creative partnership with private sector to fund BC Place roof

RICHARD GILBERT

staff writer

The B.C. government is looking for creative financing to pay for a new roof on B.C. Place Stadium, after delays caused by a lack of funding for the project in the last budget.

“Since this project went out to tender, the world has changed and the government is in a deficit,” said Kevin Krueger, minister of tourism, culture and the arts.

“Agreement on the price was substantially done before the government released the last budget.”

In September, the provincial government released an updated 2009 budget that contains revised deficit forecasts of $2.8 billion in 2009-10, $1.7 billion in 2010-11, and $945 million in 2011-12

“We have decided to bite the bullet of putting a retractable roof on the stadium instead of replacing the existing roof,” said Krueger. “We want funds from taxpayers, but we are also looking for private-sector participation. We have received some interesting proposals and all private-sector parties want a retractable roof.”

According to a story in the Globe and Mail earlier this month, private-sector involvement at B.C. Place may include B.C. Lions owner David Braley and Vancouver Canucks owner Francisco Aquilini.

Braley and Aquilini have both expressed interest in a partnership to finance the project, in exchange for the right to develop provincially owned land.

The False Creek North Official Development Plan has already been amended to allow for commercial and residential development on the property around B.C. Place.

The money generated from the development of this prime downtown property would be used for the stadium’s maintenance and refurbishment costs.

A private investor could also demand control over operations of the facility, which is currently held by the B.C. Pavilion Corporation (PavCo), a Crown corporation.

According to PavCo president and CEO Warren Buckley, financing is the main factor that has contributed to the delays in awarding the contract for phase two of the project.

The delay “is more about what other financing options are available,” he said.

“This is an opportunity to find a private-sector partner or spread out construction over a longer period.”

PavCo has finalized the roof design with Geiger, the head engineering firm. PCL, the main contractor on phase two, has put the project out to tender.

The project is so complex that it has been broken up into 40 different bids. Kruger said the leading bids have been chosen, but have been delayed.

Bidders have agreed to hold their bids longer than originally anticipated.

BC PLACE

Phase two of the BC place renovation plan includes the installation of a state-of-the-art retractable roof. The technology for the roof can be found at Commerzbank Arena in Frankfurt, Germany, which is the home field of Eintracht Frankfurt of the German Bundesliga. A key feature of the roof design is the installation of a centrally hung electronic scoreboard.

Buckley said PavCo analyzed various bids, as well as the implications for capital cost and debt with the provincial Treasury Board. At the same time, many other factors were considered.

“It’s a cornucopia of matters that need to be addressed, including cost, safety, relocation of tenants and the impact on the Whitecaps if delayed,” he said. “What we are faced with is a project where the roof, components and some of the equipment are very complex. The previous facilities we looked at in Germany were smaller. This stadium is larger in space and the opening is wider.”

The technology for the new roof is found at Commerzbank Arena in Frankfurt, Germany, which is the home field of Eintracht Frankfurt of the German Bundesliga.

“What we are very sensitive about is we have 200 event days that will be affected by this process. Where can 12 football games be held, as well as home shows and trade shows, during ten to 12 months of construction?”

The new retractable roof will go ahead, but it probably won’t be completed on time to meet the original target of summer 2011.

Delays on the construction of the roof may have an impact on the Vancouver Whitecaps’ bid for a Major League Soccer (MLS) franchise. The league’s second Canadian franchise was awarded to the Whitecaps in March based on a plan that included a refurbished stadium.

The roof was scheduled to be completed in time for the start of the 2011 MLS season.

With the 2010 Olympics coming to Vancouver, PavCo was able to get a loan from the government for a $365-million stadium upgrade.

The renovation plan, which includes interior refurbishments and the installation of a retractable roof, is being implemented in two phases

The $65 million renovation plan for Phase One began right after the football season in November 2008.

Phase Two of the renovation plan was scheduled to take place after the 2010 Olympics.

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