Winnipeg Free Press - PRINT EDITION
Water park incentive all wet
IT should be clear to the city by now that the private sector is not going to build a water park with a $7 million public subsidy, particularly when a decent facility would cost more than $40 million. If it is the will of council and the public that Winnipeg build a water park worthy of the name, not just another indoor swimming pool with slides, of which we have plenty in both the private and public sphere, then the city must consider more imaginative ways of getting the job done. The current approach isn't working.
The latest failure was exposed this week when Free Press city hall reporter Bartley Kives reported that the city was considering a proposal to build a luxury hotel and water park at The Forks with the $7 million subsidy. The land in question is located across from the Canadian Museum for Human Rights and near Canwest Global Park. It is one of the most valuable pieces of land in the city and it must be developed in a way that serves the best interests of the community. A hotel or hostel to serve students and tourists visiting the museum or a parkade to accommodate traffic are reasonable suggestions, but a water park is not.
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It's interesting that when the city asked for an expression of interest, it received only one response, and it was for land located in the city's most popular destination. If other developers had believed that location was available for a sprawling hotel and water park complex, there probably would have been more proposals. Who wouldn't want a golden opportunity to exploit the opportunities that will be created when the museum opens in 2012, not to mention the other amenities in the area that attract thousands of visitors every year?
It's not clear if the response to the request for expressions of interest will be pursued by the city, but one thing is clear: Council is in no position to consider it until a more comprehensive report on the future of the site is prepared.
The long and winding road to The Forks began in 2004 when newly elected Mayor Sam Katz cancelled plans to build a transit corridor with $43 million in provincial and federal grants. The money was redirected to recreation facilities, but $7 million was left over from that effort, so the city decided nearly two years ago to offer it to anyone who would build a water park.
Only two serious contenders came forward, including David Asper with a plan linked to a new stadium in south Point Douglas, and Canad Inns with a winning bid to expand its Polo Park hotel and build a $43.6-million water park. The city pulled the plug earlier this year, however, when Canad Inns failed to begin work for reasons that were never disclosed, but which were probably related to the high costs of the project, coupled with the city's requirement that the public have generous access, with special rates for the poor and disadvantaged -- a tall order for someone trying to run a hotel business.
If the city wants a water park, it might look underground for the money. The civic parkade beneath Portage and Main could be sold, if a buyer can be found who is prepared to pay at least $26.5 million. If the $7 million grant is added to the pot, that would give the city at least $33.5 million toward the cost of building a water park. It would, however, each year leave the city short $1.8 million in profits earned by the parkade, although that would be offset by the revenues of the new facility. A more palatable solution might be to invest the windfall, and take the interest as revenue.
Other cities have built water parks through private-public partnerships. The City of Richmond, for example, developed a vacant 10-hectare plot of industrial land in 1995 by working with a developer who built a multi-rink arena and giant indoor water park and leased them for 30 years to the city. With those anchors in place, new businesses followed and a once-desolate section of town came alive with tourists and activity.
The city, then, has options. It just has to determine if it is serious about building a water park, because a $7-million carrot just isn't doing the job.
Republished from the Winnipeg Free Press print edition November 5, 2009 A12
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