Experts cast doubt on economic benefits of proposed arena in downtown Regina
CBC
Nearly a week after the publication of the catalyst committee's final report on where to build a series of mega projects in downtown Regina, the debate over whether they are needed at all continues.
One of the largest lightning rods is the proposal for a new event centre/arena that would serve as a replacement for the aging Brandt Centre.
The report recommends that Regina construct its new arena somewhere in the city's downtown core. It's an idea that Mayor Sandra Masters expressed support for after Wednesday's meeting of Regina executive committee.
"I think our downtown needs some investment and if we're not getting any private investment — and haven't for a number of years in some respects in terms of construction — [and] if the city is going to build something, perhaps then that's when you focus it on downtown," she said.
The catalyst report says there are established benefits to the presence of an arena downtown.
"A new Events Centre is expected to have a large positive economic impact," the report reads.
However, two experts CBC spoke with for this story say that the picture is far less clear.
"There are lots of reasons to consider putting an arena in. It's a fun amenity, but hoping to make a bunch of money from it is is one of the things you shouldn't count on," Victor Matheson, a professor of economics at College of the Holy Cross in Worcester, Mass., told The Morning Edition with Stefani Langenegger.
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The proposed 10,000-seat arena, with an estimated price tag of $156 million, is larger than the 6,500 seat Brandt Centre. However, it will still likely draw most of its patrons from in and around Regina, he says. Mega events are unlikely to head to Regina with larger centres such as Winnipeg or Saskatoon nearby.
Matheson, who studies the economics of stadiums, says one of the main things in play with arenas is the substitution effect.
While people might end up spending money at the arena or commercial stores around it, he says, it's just money that would have otherwise been spent in different areas of the town. There's not a significant amount of new spending.
The arena is at the bottom of the list of projects recommended by the catalyst committee in its report, which means it could be awhile before construction begins.
The committee has been clear that if any of the proposed projects is delayed by a decade inflation could boost the price tag by as much as 80 per cent.