Budweiser Gardens management says they need some cash from the city for a renovation.
But, some councillors aren’t so sure about the idea.
At a Corporate Services Committee meeting on Tuesday, members of council heard from both management of London’s downtown arena as well as an executive from OVG360 – the group that manages the arena.
They were pushing a $33-million expansion plan for the arena, which would include multiple phases and upgrade mostly areas that aren’t public-facing. That includes upgrades to the back of the house and the London Knights’ dressing room.
“When we built the arena, we knew at some point, we were going to need a refresh,” said Peter Luukko, co-chair of OVG360. “We need more space.”
Luukko suggested that replacing an arena like Budweiser Gardens would cost $250-million and that getting major events like the Brier, the Memorial Cup, and the Junos back in the city would require upgrades to the facility.
“We’re very supportive of an expansion,” said Tourism London General Manager Cheryl Finn. “It helps us do our job and do it well.”
“If we don’t get that space if disqualifies us from an already competitive market,” she told London News Today after the meeting when asked how the renovation being turned down would impact bringing events to the city.
The plan comes with an 80-20 funding split with the city on the hook for the majority of the cost. The City of London collects 70% of the revenues the building creates.
Phase one of the project would be funded by the city’s hotel tax, which adds a four per cent surcharge to booking a hotel room in London to create a fund that can be used only for promoting tourism in the city.
“I think there are too many questions in terms of the details right now to authorize a $9-million expenditure,” said Ward 6 councillor Sam Trosow, who argued for several changes to the wording of the motion that staff had prepared. “I understand that the expenditure is not going to be put on the taxpayer’s levy, it’s coming out of different funds. But it’s still city money.”
The decision made at the committee was to have staff draw up what a potential agreement with OVG360 would look like, but they have not agreed to commit the funding at this point. That motion was passed 5-0.
“Essentially, the dollars we’re spending are, when you heard about all of the things that are happening at Budweiser Gardens and all the people who are drawn in, it’s the people who stay in those hotel rooms, who put money into that fund,” Mayor Josh Morgan said. “It gives us something that aligns with the fund perfectly.”
Brian Ohl, the general manager of Budweiser Gardens, was concerned about haggling over the wording of the motion.
“Overall, we’re happy. Would have liked to avoid those amendments. I think it slows the process down a bit,” Ohl told London News Today after the meeting. “We’re happy that it is moving forward and that it wasn’t a no.”
The plan will be discussed at full council next week.
