City officials are not expecting any delays in the planning and construction of a pair of contentious Build Kamloops projects, despite a legal challenge to their financing.

A petition filed in BC Supreme Court last month by a Kamloops resident claims the City didn’t follow the proper “spirit and intent” of the Alternative Approval Process, which ultimately approved bylaws giving the City the ability to borrow up to $275 million dollars to get the long-planned Centre for the Performing Arts downtown, as well as a four-plex ice rink in Dufferin, financed and built.

That suit filed on October 22nd alleges a variety of missteps by the City during the AAP, such as setting the vote in the summer, as well as clarity of voting notifications and the metrics used to come up with the threshold of 8,713 “no” votes needed to stop the process.

“I fear what’s going to happen is its going to cost the taxpayers some more money to go into court to, perhaps, have the judge — most likely — say the provincial government approved this process,” said Dale Bass, the Deputy Mayor of Kamloops for November, noting the AAP was vetted by the BC government before the City launched the counter-petition process on July 30th.  “The Ministry approved this… the provincial government approved this. They said ya, this is OK, we like the wording you’ve got now. Go for it,” said Bass.

The legal challenge has prompted city officials to put a hold on any plans to initiate the borrowing process until the court case is settled.

In the interim, Bass says existing funds will be used to keep the planning process going for both projects.

“As we move forward, we’re going to use some of our internal funds that are available,” noted Bass.  “Then, when we get to the point where we start to need to spend the bigger money, that’s when we planned on applying.”

Funds are already available to continue the final design work on the Centre for the Performing Arts, after Kamloops council approved spending $7 million dollars to complete that work in February.

Cost estimates or approvals to design the arena multiplex have not been put forward, as the whole of city council has yet to formalize a tentative, four ice-sheet concept a council committee has agreed to recommend at an October 21st meeting.

Construction of both projects is expected to get underway in either late 2025 or early 2026, requiring a good portion of the $275 million approved for borrowing to pay for the work.

While construction work is around a year from getting underway, the City did have the option — ahead of the court challenge — to get the financial process moving immediately.

Part of the financing strategy for Build Kamloops includes paying off the outstanding debt owed to the Municipal Finance Authority for previous municipal projects, such as the Tournament Capital Center, then use the value of that infrastructure a collateral to back new loans — with a modified repayment scheme — for the Performing Arts Centre and the multiplex.

 

City of Kamloops still is ststill paying down for earlier projects such as the Tournament Capital Centre, the Westsyde Pool and municipal infrastructure, including the TCC and the Sandman Centreo the Municipal Finance Authority for previous projects, such as the Tournament Capital Center and others

Instead, plans are to pay off the outstanding debt from the loans used to build the Tournament Capital Centre

 

She notes the AAP did undergo a thorough vetting process before being launched on July 30th.

“The Ministry approved this… the provincial government approved this. They said ya, this is OK, we like the wording you’ve got now. Go for it,” said Bass.

A petition filed in BC Supreme Court by a Kamloops resident claims the City didn’t follow the proper spirit of the Alternative Approval Process, alleging a variety of missteps through the process connected to the notices issued by the City, the summer timing of the 40 day process, as well as the calculations used to determine the number of negative votes needed to put it to a full referendum.

It’s not clear when — or if — the Court will hear the case.