New North Rustico rink has cost twice original estimate — and still isn't done
CBC
An independent consultant brought in by the P.E.I. government has found North Rustico's still-unfinished new rink has cost twice as much as expected, coming in at more than $22 million — and some major suppliers have not been paid.
David Boyd of Resolve Advisory Services in Halifax was hired to examine the town's books with regard to building and operating the Eliyahu Wellness Centre at Canada Games Place. He has more than 25 years of experience working with businesses and governments when projects are in trouble financially.
"I think the total construction project is going to come in around $22 million," Boyd said in an interview with CBC News.
The province reached out to Boyd after the town raised concerns about liens being placed against it earlier this year for unpaid work at the rink.
CBC News has confirmed millions of dollars in liens have been registered against the Town of North Rustico for unpaid bills, one for more than one million dollars.
When the town first announced a new recreation centre would be built, the cost was estimated at $10 million. Plans for the new facility included a walking track, a fitness centre and an Olympic-size ice surface, as well as an elevator.
The arena was prominently used as Prince Edward Island hosted the 2023 Canada Winter Games, acting as the venue for figure skating and short track speed skating.
But when it did so, parts of the project were not completed and remain unfinished to this day.
"The province really wanted to understand... who might be owed monies on this project and how to resolve those issues. And then outside of that is 'Was it done?' And 'What else needed to be done on the rink in order for it to be fully completed?'" Boyd said.
The consultant spent all summer meeting with the mayor, councillors, town and rink staff, and suppliers.
His firm is also looking at the operating model for the rink, to figure out how a town of 650 residents can afford to operate the facility.
Another part of his assignment is figuring out how to pay what suppliers are owed — now about $2.5 million.
Boyd's firm discovered up to $400,000 in work that still needs to be completed, including:
Who pays for all that is still to be determined.
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