Markham goes slow on NHL-sized arena plan
Markham councillors defer a site plan report for an NHL-sized arena, concerned they need more time to understand the $325 million project’s impact.
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Remington Group would like to start preliminary studies on the land set aside for a future NHL-sized arena, but councillors voted Tuesday to go slow, fearing the consequences if they later reject the project.
Markham councillors have deferred a site-plan report for an NHL-sized arena over concerns that they need more time to understand the impact of the $325 million project.
If Markham City Council had supported the report — which city staff recommended they endorse — it would have allowed the project’s private partner to begin planning the transportation, parking and road infrastructure around the 20,000-seat arena planned for the city’s downtown. Final site approval would still be contingent on several conditions, including council approval of the financial framework for the project.
Instead, council sent the report to the development committee to consider at its Nov. 6 meeting.
“If we are going to engage the public, we have to do it in the right way, “said Ward 4 Councillor Carolina Moretti.
A public meeting on Wednesday evening will give residents details on the infrastructure around the arena.
The project has not been without controversy for this city of 300,000. In April, council voted to take on $325 million in debt to finance the project. Through a complicated formula of development levies, ticket surcharges and parking fees, the city will pay for half the costs. The other half — $162.5 million — is being backed by billionaire developer Rudy Bratty of Remington Group, who has formed a partnership with arena promoter Graeme Roustan.
But some residents and councillors worry that the project is moving forward too quickly, and that details have been slow to come out.
On Tuesday, councillors appeared concerned that moving too fast would leave them vulnerable to legal action if, down the road, they rejected the final plan. Several councillors pressed staff about the order of process and ramifications of a future vote that against approval.
Approving the site plan would allow Remington Group to begin conducting more detailed studies on the land, involving a sizable investment.
“What happens if the good applicant here goes through this process here, and spends all kinds of money, and the city decides against this project? Where do we stand as to having to compensate them for this. Do we have some sort of indemnification … or can they come back on us?” asked Councillor Don Hamilton.
The city’s legal counsel quelled few fears when she answered: “Anyone can be sued for anything,” and that the developers could find recourse at the Ontario Municipal Board, if they chose to do so.
A spokesman from Remington said he “took exception” to the comments that it would litigate or take the city to the OMB.
Council was given a sneak preview of the presentation residents will see Wednesday evening, including details on the road network, public transit options and sustainable elements of the facility. There was lengthy discussion on parking options around the arena. Councillors disputed with Genivar traffic consultant Sharon Sterling on the practicality of pushing a transit-focused approach in an area where public transit options are few and far between.
“I don’t want to dissuade people from coming to the building,” said Deputy Mayor Jack Heath.
The plan calls for 4,400 parking spots, but both city staff and Mayor Frank Scarpitti say there will probably be thousands of parking spots nearby.
Wednesday’s meeting will be the fourth public meeting in recent months on the arena. Scarpitti issued a statement this week clarifying his position and the process going forward.
“The City of Markham has NOT entered into any binding contracts committing to the proposed arena,” wrote Scarpitti, adding that council would proceed to the next step only after there is more disclosure and debate.
Scarpitti said the Memorandum of Understanding will be finalized and released in coming months and will be subject to a third party review.
He also said he is “on the record” as wanting to release consultants’ reports the city commissioned as part of its due diligence on the financial framework and arena promoter Roustan, and said he “has instructed staff to release them.”
But on Tuesday, council went behind closed doors to discuss a motion by regional councillor Jim Jones to make the due-diligence reports public. Councillors received presentations on the reports in April, but have been denied access to the reports themselves by staff, despite numerous requests.
Later on Tuesday, councillors supported Jones’s motion to make the reports public. That will be considered at the next council.