Stressing a final decision won’t be made until after October’s municipal election, Chatham-Kent councilors voted to seek a “due diligence” report from an independent firm about the proposed Downtown Chatham Center project.
Council approved a staff recommendation Aug. 8 for the Imagine Chatham-Kent proposal to be designated a priority project due to its strategic potential.
A request for proposals will now be issued for a comprehensive study. As much as $2 million was approved for these consulting services, including external legal counsel, with the money coming from the building lifecycle reserve.
Bruce McAllister, general manager of community development, told councilors the priority designation identifies the project as “warranting further resources necessary to determine, in a responsible and timely manner, its overall value for taxpayer dollars, its business validity and to ensure final decisions regarding scope reflect the current and future needs of the community.”
In June, the downtown mall’s ownership group – Rob Myers, Pete and Jessica Tsirimbis, Ron Nydam, Don Tetrault and Jim Bullock – announced the multi-phased redevelopment plan.
The first phase proposes the creation of community hub that would house the civic centre, library, cultural center and museum under one roof in the former Sears building.
The second phase involves demolishing a large section of the mall to construct an approximately 4,000-seat entertainment complex and arena surrounded by retail outlets. A third phase could see the creation of residential and work space.
In total, the projected cost estimate is $115 million to $125 million.
The firm, once selected, will conduct further public consultation, feasibility and business case assessment, along with an engineering and financial review, with recommendations on final scope, value and next steps.
“Based on the scale of this proposal, its outstanding questions, risks and public demand for further input, administration has determined there currently isn’t sufficient capacity internally for this due diligence,” McAllister said.
There will be discussions with community groups, businesses, municipal departments and other community partners, as well as studies into the impact on downtown infrastructure, traffic and parking.
South Kent County. Clare Latimer said she supported moving ahead with the due diligence report, noting the information about Chatham-Kent’s assets will be useful whether or not the project moves ahead.
“I don’t think it’s a waste of money at this point at all,” she said.
The first phase, Latimer added, likely makes sense given the replacements or renovations needed for the municipal facilities in question. She agreed with the second phase only if there was adequate senior government funding available.
East Kent County. Steve Pinsonneault entered an unsuccessful motion asking to refer the request for the due diligence study to the next council term.
He said he’s concerned “the train’s going to leave the station with no return” once the municipality pays for the consultant report.
Pinsonneault also expressed worries about future inflation impacting the estimated cost.
“There’s no doubt (this project) would revitalize downtown Chatham,” he said, “but the sad part is we can’t afford it.”
However, West Kent Coun. Melissa Harrigan called it a unique proposal worthy of further investigation.
“It clearly goes into the next term,” she said, “which allows the next council to make the decision with all of the information that they need.”
Chatham County. Michael Bondy also offered his full support for the decision.
He didn’t believe council was acting too quickly, given the consultation and investigation still to come.
“We’re not jumping in with two feet and saying ‘carte blanche,’” he said. “We’re taking a really slow walk.”
Bondy said the community is fortunate to have willing investors with a track record of development and a vision to improve the downtown core.
“If they succeed, we succeed as a community,” he said. “We’ve got an opportunity, and the opportunity may never present itself again.”