Cost Sharing Agreement
The City has entered into a comprehensive cost sharing agreement (CSA) with its partners for the Kingsway Entertainment District. This CSA covers all costs and obligations for the City for any development outside of its property limit.
The four partners are:
- the City of Greater Sudbury (responsible for the event centre),
- Gateway (responsible for the casino and restaurants),
- the hotel/conference centre (represented by the developer, Mr. Zulich), and
- the developer (responsible for the remaining lands).
All partners are working together and are committed to the successful completion of the project, as evidenced by the signing of the cost-sharing agreement.
The cost sharing agreement focuses particularly on the common areas/works and blasting. Each partner is responsible for the development of their own site, including buildings and parking lots.
Mitigating Risk
The cost sharing agreement was negotiated with value for money and the interests of the community in mind and with the aim of mitigating risks to the municipality and to taxpayers.
There is a clause that allows the City to terminate the agreement without penalty at any time before the Local Planning Appeals Tribunal (LPAT) process has been completed.
All parties have agreed to delay major site work until LPAT direction is received. Planning work will continue to ensure that the project maintains a shovel-ready status.
Tendering and Administration
The City has agreed to be responsible for the tendering and administration of the road work and the intersection improvements.
By leading the procurement and the administration of the contract, the City can ensure that it is in compliance with:
- the City’s Purchasing By-law and
- the contracts are awarded in a fair and transparent process.
The developer is providing security to the City for payment of its financial obligations: the City is leading the majority of the works and the developer has agreed to put up a bond to ensure that the City is reimbursed.
Cost Sharing Agreement
The costs associated with each of the major elements of the site’s development are below. The agreement outlines every financial obligation that will be borne by the City.
|
Item |
Event Centre (City) |
Casino and Restaurants (Gateway) |
Hotel (Developer) |
Remaining Lands (Developer) |
|---|---|---|---|---|
|
Road Works |
27.9% |
14.7% |
7.3% |
50.0% |
|
Intersection Improvements |
27.9% |
14.7% |
7.3% |
50.0% |
|
Site Preparation (blasting and grading) |
55.9% |
29.4% |
14.7% |
0% |
|
Storm Water Management Pond |
50.3% |
26.5% |
13.2% |
9.9% |
|
Festival Square
|
60% |
30% |
10% |
0% |
|
Bus Loop, Festival Square Stairs, Trails, Overflow Parking |
100% |
0% |
0% |
0% |
Road Works and the Intersection Improvements
The cost for the Road Works and the Intersection Improvements is divided equally between the properties within the crescent (Event Centre, Casino and Restaurants, and the Hotel) and the Remaining Lands (Developer).
The 50% cost for the properties within the crescent is allocated to the Event Centre, Casino and Restaurants, and the Hotel based on the property area of each. With the Event Centre being the largest property, it has the highest cost allocation, and with the Hotel being the smallest property, it has the lowest cost allocation.
The Road Works include all site servicing required for the properties, including water main, sanitary sewer, sidewalks, cycling infrastructure, and storm sewers.
Site Preparation
The site preparation contract has been awarded, and the costs are to be allocated to each party based on the property area of each. By tendering a single contract for site preparation there are benefits to all partners that include economies of scale, simplification of site management issues, and a shared commitment to achieving the Detailed Integrated Site Design.
Storm Water Management Pond
The Storm Water Management Pond costs are to be allocated to each party based on the property area of each. There is an allocation to the Remaining Lands as the road drains to the storm water management pond and that is a benefit to the Remaining Lands.
Festival Square
The cost of constructing Festival Square has been split into different items.
The backfilling will occur in different stages as the properties are developed and the cost allocation is based on this development scheduling.
The cost of the surface is allocated to each party based on their end use.
- The Casino and Restaurants are responsible for the surface of the restaurant patios.
- The Hotel is responsible for their patio area.
- The City is responsible for the remainder of the cost. This is to ensure that the City maintains full control of the design as well as the programming on Festival Square. The City will also be responsible for the amenities that are included in Festival Square outside of the partner patio areas. Festival Square is being designed as a public space open to all.