Financial frustrations over Milton Velodrome

Figures for the operating costs of the Milton Velodrome were recently submitted to town council. The staff report indicates a more refined financial accounting than had been seen in previous business plans, and the costs have left some worried.

The full three year forecast shows an operating cost of nearly $5 million dollars before revenues. Staff have indicated that the new report is a close match to previous numbers.

Jennifer Reynolds, Community Services Director for the Town of Milton told insideHalton.com that the report is “not completely identical because we’ve now refined our staffing costs, we’ve refined utility costs. We don’t think it’s far off the mark.”

The biggest concerns are over the $1.2 million projected shortfall over the same three years of operation, after including the funds from the legacy funding from the Toronto 2015 Pan Am Games.

The velodrome is meant to be a multi use facility and will include a gym, a walking track and basketball court, expressly to broaden the appeal beyond those in the cycling community. Additional revenues will also come from leasing out retail and office space. Both Cycling Canada and the Ontario Cycling Association will move into office space at the velodrome.

Councillor Rick Malboeuf has expressed concerns with the cost of the facility, writing a letter to the editors of insideHalton.com.

Part of his reservations are a result of Milton not having representation on the Legacy Funding Allocation Committee, the body that determines which facilities receive funding, and exactly how much.

“The $736,000 [of legacy funding] per year is to help cover the operating deficits for the first three years. My concern was we had no idea if this $736,000 would cover all, some or just a small portion of the anticipated annual deficits, as no velodrome budget was presented,” wrote Malboeuf. “This could leave a $1.2 million shortfall that would have to come from Milton taxpayers.”

Malboeuf went on to comment that he felt this was a bad deal for the residents of Milton.

Fellow councillor, Mike Cluett has meanwhile set out to remind people that the facility is meant to be multi-use, and that the velodrome will offer even greater value to the community if and when Wilfred Laurier University is able to go ahead with a satellite campus adjacent to the velodrome.

The velodrome is set to open in September 2014, and will play host to the 2014 Canadian Track Cycling Championships.