The estimated cost of the new Fredericton performing arts center amounted to $ 58.3 million, prompting city staff to shuffle funding sources to make the budget work.
The original estimate for 2019 was just over $ 45 million, but according to Mayor Kate Rogers, that figure increased due to inflation.
“It’s another reason we need to move forward on this project now before it continues to grow and grow,” Rogers said. “These are current dollars, so they have to be spent today while still maintaining their value.”
A report presented to the council on Monday says that apart from inflation, the estimate was also affected by rising material and labor costs due to COVID-19.
The report says the city will not borrow more than the $ 14 million planned for the project, despite rising costs.
The deficit will be covered by the Federal Community Building Fund of Canada, which was initially earmarked for a water and sewer project. This project will be funded by a joint provincial and federal infrastructure agreement called the Integrated Bilateral Agreement.
About $ 41 million comes from the Canada Community Building Fund, formerly known as the Gas Tax Fund. The rest of the cost will come from a $ 14 million municipal loan, a $ 3 million community grant estimate and a $ 100,000 donation from Oromocto.
The Council voted to approve this financing plan on Monday and ordered staff to submit an application to obtain a loan from the province’s Municipal Capital Loan Board for $ 14 million.
City spokesman Wayne Knorr said Tuesday afternoon there will be a funding announcement related to those numbers.
Why a new performing arts equipment?
At the board meeting, Sara DeGrace, the city’s deputy administrative director, said an evaluation of the 2012 facilities considered the Playhouse to be “beyond its useful life.” At the time, the city made a new performing arts center its number one infrastructure priority.
The facility will include an 850-seat theater and a 300-seat theater that will share later facilities, between racks and cargo areas, DeGrace said.
He said the center is an opportunity “once in a generation” and that it is economically and culturally the most important investment in the city’s history.
The design process was led by Diamond Schmitt Architects.
In 2021 the city bought land in the city center at 560 King St. for $ 8.2 million, which it was then intended for the new location of the art center.
Community impact
The project has been in development for about 10 years. For Rogers, this new center is a game changer.
“The first design job that is being considered, I mean, is really state-of-the-art and it’s what Fredericton as a capital deserves,” Rogers said.
He said it is a miracle that the building lasted during the 10 years the project was under construction.
Rogers said that while there is some pressure over time as the building needs to be replaced, they wanted to do it in an affordable way for city residents. He said they were aware of how much they were investing in the project as there are other projects to which they also want to contribute.
Murray Jamer, chairman of the Fredericton Playhouse board, said the performing arts center is a community center.
Murray Jamer, chairman of the Fredericton Playhouse board, said the new performing arts center is important to the entire community. (Hannah Rudderham / CBC)
“It’s important for the art community … but also for people who like to go to shows,” Jamer said. “It’s also important for the whole community, for the business community, for the opportunity to attract new people to come to Fredericton.”
He said the city has to make difficult decisions about funding and that this project takes a long time.
“If not now, when will it happen? It won’t be less expensive as we move into the future,” he said.
Construction of the art center will begin in the fall of 2023.