Gateway committee aims to board modernization train (6 photos)

Gateway committee aims to board modernization train (6 photos)

The Economic Development Corporation feels the timing and plan is better than ever for development of the Gateway site.

At Monday's city council meeting EDC CEO Tom Dodds presented a report on the much-maligned Gateway site and urges prompt action now that the timing is right.

"Presently, both at the Gateway site and lands adjacent there is a unique game changing window opportunity for growth," said Dodds. "It's an undertaking requiring a dedicated and collaborative partnership between the EDC and the city to be successful. We are all in this together."

Dodds went on to say he has seen very few occasions where circumstances and timing have come together to present such a fruitful opportunity.

The timing he's eluding to relates to the Ontario Lottery and Gaming Corporation's modernization plans that will see them privatize casinos throughout the province and the redevelopment of the former St. Mary's Paper site.

"The combination of OLG's casino privatization and willingness expressed by the new St. Mary's owners to develop this downtown waterfront location creates a unique opportunity," Dodds said.

Council voted 11-1 in favour of accepting a report developed by the EDC - in partnership with Forrec Ltd. (planning and design firm) and PKF Consulting (consulting firm) - about the Gateway site as information.

(Shown above and in our photo gallery below are artists' renderings of what the site may look like when completed.)

Ward 6 Councillor Frank Manzo was the lone member of council to vote against the motion and doubts whether anyone will purchase property on the Gateway site.

"I'm going to tell you guys now, you're wasting your time," said Manzo. "Nobody is going to buy that property unless it's cleaned and prepared for sale properly."

Manzo accused the EDC is pulling the wool over tax payers eyes and said an environmental assessment of the site should have been done before the report was created.

Pointing to the potential large-scale benefits of the Gateway site, Ward 1 Councillor Paul Christian voiced opposition to Manzo's view.

"This is something we've looked at for many years," said Christian. "It appears things are coming together with the development of the surrounding area. I realize this requires an ongoing commitment from the city to operate it, but I wouldn't turn down a proposal like this because it's potential is so large."

Christian mentioned the West End Community Centre and Essar Centre as examples of where municipal funding helped jump-start development.

Next up in relation to the Gateway site will be the formation of a committee with representatives from city council and the EDC to further examine the issue.

Ward 3 Councilor Brian Watkins and Ward 6 Councilor Joe Krmpotich will represent council on the committee.

Meanwhile, city staff will work to develop a next steps report - which CAO Joe Fratesi expects to have for an Aug. 13 council meeting.

As for the details in the report, plans for the Gateway site now include making the site operational throughout the year and changing the focus from drawing in tourists, to luring in locals.

"This site will have enough attractions to entice people from the Sault and beyond," said John Plumpton, Project Director at Forrec Ltd. "We came to the conclusion that you must first draw residents to the site order to form an solid economic base."

The proposed program for the Gateway site includes a public plaza, discovery centre, exhibit space, four seasons landscaped atrium, condominiums, waterfront restaurant/cafe and destination retailers.

"This will not be a singular attraction destination. There are too many examples of failed ones in the North and we won't repeat those mistakes here," Plumpton said.

Additionally, the Agawa Canyon Train Station and Art Gallery, along with the Algoma Farmer's Market are being proposed to relocate to the site.

The Gateway site would also include an interactive fountain which could be used as an ice skating rink in the winter.

Key to the new site is the Sault Exploration Centre (18,000 sq. feet) which is described as an active participation culture and entertainment centre telling the story of our city's past, present and future.

"We're very interested to see the scale of which each one of these elements can be incorporated," said Plumpton. "There is plenty of space reserved for each element so we can be flexible."

Total cost of the Gateway site is pegged at approximately $69 million - broken down to $36.5 million of public funding and $33 million in private investment.

In addition to the above funding, other public sector commitments would include the contribution of 14 acres of land to the project valued at approximately $2 million and getting the site development ready.

"From the city's perspective, they would also be responsible for the selling of property to the residential and commercial sector," said Fran Hohol, Principal at PKF Consulting. "In addition, they would be responsible for the building and operation of the core attractions."

Hodol said the Exploration Centre and Icon Tower are not financial viable to the private sector and will require public dollars to build and operate.

"They're not unlike any attraction in the province and will require operating subsidies," Hodol said.

She added they are currently attempting to come up with a model to help off-set those costs.

Construction of the Gateway site is expected to generate $22 million in GDP for Algoma District, along with 239 jobs and $16 million in labour income.

The report also projects close to $8 million in revenue for the area and $1.6 million in direct Federal, Provincial and Municipal taxes on an annual basis.

Hohol said the financial projections were on the conservative side.

The largest generator of income on the site is expected to be condominiums - projected to create $20.86 million in project revenues by the third year of operation.

There will be 64 residential development condos which will cost $326,000 for units that will average around 1,360 sq. feet.

While the condos will fatten the wallets of those involved, the Sault Exploration Centre is expected to be the largest draw.
By the third year of operation, the report projects attendance of the centre at 101,200.

"It will be a great attraction for families on their March break and school field trips during the school year," said Plumpton.

"We foresee the exploration centre as the centerpiece of the proposed Gateway site."