THUNDER BAY – City council has settled on a multi-million-dollar plan to replace the Victoriaville mall, establishing the budget and design theme for a project city leaders hope will spur activity and new development in Thunder Bay's south end.
The preferred option recommended by city administration faced some questions over its $17.5-million price tag – which could require the city to debenture north of $15 million – and its winter hardiness.
Ultimately, however, the plan was greeted enthusiastically and approved unanimously by council in a Monday meeting.
Several councillors argued the design will not only add attractive new public spaces and improve traffic flow in the heart of the south end, but make for a good bet on the downtown’s economic future, too.
“No one likes the word debenture, but this is a worthwhile thing to invest in,” said Coun. Mark Bentz. “I think it’s literally going to breathe fresh air and light into this core – you take that roof down, you’ve got a clear sight through, it’s going to change this end of town.”
“I hope this transforms the core, I hope people buy into it, and I do think it’s going to enhance civic pride. You really can’t put a price tag on civic pride.”
Westfort Coun. Kristen Oliver said the revitalization plan “knocks it out of the park,” agreeing it has transformational possibilities.
“As a ward councillor from the south side of the city… I hear on a regular basis, ‘When is it our turn? The north side seems to get a lot of investment,’” she said.
“I think this certainly shows the south side is a very important part of this community, and the city is doing everything it can to address the current state of the downtown south core – we certainly recognize it’s in need of some support and some rejuvenation.”
The $17.5-million Class C estimate presented for the work includes a $2.5 million contingency and another $300,000 that, if the work stays on budget, could fund a public art project or water feature.
That compares to a $10.75 million Class D estimate from 2020, leading Coun. Albert Aiello to ask how "we went from $11 million to $17 million."
Joel DePeuter, the city’s director of development services, said the project’s construction value had increased only slightly, to around $12.5 million, with the remainder largely accounting for “add-ons” to improve the space.
"There’s been interest from council, interest from the public to build a fantastic project and to include some premium streetscaping features, so that’s been included," he said.
DePeuter added demolishing the mall will also save money, by taking its roughly $1-million annual deficit off the city’s books.
Coun. Andrew Foulds called the spend "almost a no-brainer" given its potential to encourage more development in the city's downtowns.
“It’s the downtown cores that are really contributing a lot to our revenue, and frankly, it’s about time they see the investment they’ve been making,” he said. “We can have some sticker price shock, but you look at what the downtown property owners are giving us to work with – it’s significant. And by making this kind of investment, it’s only going to get better.”
Questioned on more costly elements of the design, Craig Rowbotham of consultant KGS Group called them essential to maximizing benefits.
“I think you have to really invest in your infrastructure,” he told council. “If we went with conventional materials only, just asphalt, just concrete throughout, I really think you’ll have a tough time [attracting] businesses wanting to set up shop.”
Coun. Brian Hamilton agreed, suggesting the city should “be the aesthetic standard-bearer for public spaces.”
Stephen Margarit, chair of the city's downtown Fort William revitalization committee, argued in a deputation that public dollars invested in the area are likely to drive business, residential, and office development.
"What we’re hoping for is to create that economic growth," he said. "Reopening Victoria, turning Syndicate Avenue into an open public space, that’s going to create a change, and hopefully – and we think it will – move the private sector to rethink their investments too."
"This is going to be a generational change for the area, this is a once-in-a-lifetime opportunity. Yes, there's a cost associated with this and we're higher than originally anticipated, but the cost of not doing it is also there, and the costs of postponing this will only increase.”
Margarit noted the proposed budget may not cover items the committee flagged as important, such as a prominent public art piece or water feature.
In fact, the design was trimmed down significantly from what KGS initially prepared based on public feedback, which came in “well above $20 million,” DePeuter said.
That was reined in by administration “to scale back the project to a budget we felt council could accept,” he said.
A stage, public art spaces, fountains, and public washrooms are among items supported by the public but left out of the final design.
The approved design does little to address the one significant problem with demolishing the mall identified in a city review – its impact on vulnerable populations including the homeless, who have used the mall as a gathering place.
Staff previously suggested elements like public washrooms and a cooling feature could help address that, but those are not included in the final design.
The city will issue three separate tenders for the work: A renovation contract to prepare facades facing into the mall for outdoor exposure is estimated at $4.2 million; a second contract for deconstruction of the mall at $4.8 million; and a final contract to rebuild Victoria Avenue and public spaces at $3.5 million.
Renovations are set to begin in late 2023, with demolition in late 2024, and reconstruction in the second quarter of 2025.
The city has budgeted over $6 million for the project so far, including a $4.7 million debenture in this year's budget. It could have to debenture more than $10 million more in the next two years, depending on final estimates and the outcome of $2.5 million in funding applications to FedNor and the NOHFC.
