North Rustico residents have big questions after report criticizes handling of rink project

Changes made to the initial plan for the Eliyahu Wellness Centre, which omitted items including financing costs and a Zamboni to maintain the ice surface, led to the facility having an Olympic-sized ice surface. (Ken Linton/CBC - image credit)
Changes made to the initial plan for the Eliyahu Wellness Centre, which omitted items including financing costs and a Zamboni to maintain the ice surface, led to the facility having an Olympic-sized ice surface. (Ken Linton/CBC - image credit)

The cost of building the new Eliyahu Wellness Centre Canada Games Place in North Rustico, on P.E.I.'s North Shore, was underestimated right from the start, a consultant hired by the town has concluded.

And the situation only got worse as plans for a larger facility were developed, according to an executive summary of the report by the consultant MNP, dated Oct. 4 and now posted to the town's web site.

"The town lacked the required skills and experience to execute a project of this magnitude," the report concluded.

The provincial and federal governments also came in for criticism. As project funders, the report said, they should have reviewed the capabilities of the town — both administratively and financially — to complete the facility.

The town has blamed the COVID pandemic for the cost of the project rising from $9.9 million to $23 million, citing supply-chain issues, labour shortages and inflation.

But the MNP report said those issues accounted for no more than $3 million of the extra costs.

The initial estimate for the arena left out key items, such as a Zamboni and financing costs, and other costs were significantly underestimated, the report says.

North Rustico's new rink, the Eliyahu Wellness Centre, includes an Olympic-size ice surface, 10 dressing rooms, a fitness centre, and a campus for a private sports academy.
North Rustico's new rink, the Eliyahu Wellness Centre, includes an Olympic-size ice surface, 10 dressing rooms, a fitness centre, and a campus for a private sports academy.

North Rustico's new rink, the Eliyahu Wellness Centre, includes an Olympic-size ice surface, 10 dressing rooms, a fitness centre, and a campus for a private sports academy. (Shane Hennessey/CBC)

Then, after the initial budget was approved, new plans were drawn up that made the facility 64 per cent larger than had been outlined in the 2019 feasibility study for the project.

'Absence of a governance plan'

The expansion was planned to accommodate speedskating events for the 2023 Canada Games and provide a new home for the Mount Academy, a private preparatory and athletic school.

That happened in the "absence of a governance plan to clarify roles and responsibilities, accountability, delegation of authority, documentation requirements, and communication expectations," the report authors wrote.

Hockey action is underway at the Eliyahu Wellness Centre in North Rustico but work still needs to be completed. Neither the commercial kitchen nor the canteen are operating.
Hockey action is underway at the Eliyahu Wellness Centre in North Rustico but work still needs to be completed. Neither the commercial kitchen nor the canteen are operating.

Hockey action was well underway at the Eliyahu Wellness Centre in North Rustico before the project was finished, with neither the commercial kitchen nor the canteen operating by late 2023. (Wayne Thibodeau/CBC)

"We did not find evidence that this likely funding shortfall was clearly communicated to Council in 2020 in terms of scale and quantification. Instead, close to $6.6 million of construction tenders were issued and awarded, contractually committing the town to begin a project that it had not yet secured full funding for."

The business plan was not updated to assess the sustainability of a larger facility, the report adds.

In March of 2021, the town approved a motion to pay its portion of eligible costs tied to the facility, presumed to be $4.8 million. Representatives of the town and province decided at that time not to apply for additional federal funding, which meant that the town's funding obligation was actually $9.9 million.

Last month, the province authorized a $3.5-million, five-year loan to the town to help cover those costs.

Residents call for accountability, resignations

While the report confirmed what many residents of the town already knew, some are left wondering what comes next.

Ken Lloyd, who's lived in North Rustico for nine years, said the federal and provincial governments should step in to help cover the arena debt.

He also thinks surrounding communities that make use of the centre, but don't share the same tax burden as North Rustico residents, could have some financial role to play.

"I think there's a lot of things that can be done. Now, I'm not sure that our council has the ability or the understanding to actually do it," Lloyd said.

I think it's time now for accountability, and I think our mayor, Heather McKenna, should probably resign. — Trent Olney

Trent Olney said the town "blindsided' residents with the cost overruns when the project was nearly complete. He worries about future generations who will continue to have to pay off the arena debt through taxes.

Olney said he wrote to North Rustico's council, calling for accountability.

"To this point in time, no one has admitted mistakes, no one's said: 'We're sorry this happened,'" Olney said.

"I think it's time now for accountability, and I think our mayor, Heather McKenna, should probably resign. She's been here since Day One of the project, she knew what was going on, she helped make these mistakes, and I think she should step aside."