Cost estimate for Fredericton arts centre jumps by $13M

The cost estimate for the new Fredericton performing arts centre went up to $58.3 million, prompting city staff to shuffle funding sources to make the budget work.

The original estimate in 2019 was just over $45 million, but according to mayor Kate Rogers, this number jumped due to inflation. 

"It's another reason why we have to get moving on this project now before that continues to increase and increase," said Rogers. "These are today dollars, so they need to get spent today while they still hold their value."

A report presented to council Monday says aside from inflation, the estimate was also affected by increasing material and labour costs because of COVID-19.

The report says the city will not be borrowing more than the planned $14 million for the project, despite the cost increase.

The shortfall will be covered by the federal Canada Community Building Fund, which was initially earmarked for a water and sewer project. That project will be funded by a joint provincial and federal infrastructure agreement called the Integrated Bilateral Agreement instead. 

About $41 million is coming from the Canada Community-Building Fund, formerly known as the Gas Tax Fund. The remainder of the cost will come from a $14 million city loan, a $3 million community donation estimation and a $100,000 donation from Oromocto.

Council voted to approve this funding plan Monday and directed staff to submit an application for a loan from the province's Municipal Capital Borrowing Board for $14 million. 

City spokesperson Wayne Knorr said there will be a funding announcement Tuesday afternoon related to these numbers.

Why a new performing arts facility?

At the council meeting, Sara DeGrace, the city's deputy chief administrative officer, said a 2012 facility assessment deemed the Playhouse "beyond its useful life." The city then made a new performing arts centre its number one infrastructure priority. 

The facility will include one 850-seat and one 300-seat theatre that will share back-of-house facilities, backstage and loading areas, said DeGrace.

She said the centre is a "once-in-a-generation" opportunity and is economically and culturally the most important investment in the city's history. 

The design process was headed by Diamond Schmitt Architects.

A downtown chunk of land at 560 King St. was purchased in 2021 by the city for $8.2 million, which was then earmarked for the new site of the arts centre. 

Community impact

The project has been in development for around 10 years. For Rogers, this new centre is a game changer. 

"The early design work that's being considered, I mean, it's really state of the art and it's what Fredericton as a capital city deserves," said Rogers. 

She said it's a miracle that the building lasted over the 10 years in which the project was in the works. 

Rogers said while there's some pressure with timing since the building needs to be replaced, they wanted to do it in a way that was affordable to the city's residents. She said they were mindful about how much they were putting toward the project since there are other projects that they want to contribute to as well. 

Murray Jamer, the president of the Fredericton Playhouse board of directors, said the performing arts centre is a community hub.

"It's important for the arts community … but also people that like to go to performances," said Jamer. "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 tough decisions about funding and that this project has been a long time coming. 

"If not now, then when does it happen? It's not going to get any less expensive as we go into the future," he said.

Construction for the arts centre is set to begin as early as fall 2023.