THE COST OF KINGSTON'S FLAGSHIP ARENA IS GOING UP.

EXACTLY HOW MUCH -- WE DON'T KNOW JUST YET.

BUT IT COULD BE IN THE MILLIONS.

CITY OFFICIALS CONFIRMED TODAY THAT THE ORIGINAL BUDGET OF NEARLY 42-MILLION DOLLARS -- FOR THE DOWNTOWN SPORTS AND ENTERTAINMENT CENTRE -- WAS NOT REALISTIC. A LOT OF TENSION AND EXCITEMENT IS BREWING DOWNTOWN BECAUSE OF FEB FEST BUT THERE MAY BE SOME TENSION BREWING FROM CITY HALL OVER ON THE NORTH BLOCK. THAT IS WHERE THE NEW LVEC IS BEING BUILT.

A SOURCE TELLS CKWS NEWS THAT .THERE WILL BE COST OVERRUNS ON THIS PROJECT--THE CITY'S FLAGSHIP PROJECT--BY AS MUCH AS TWO MILLION DOLLARS CITY OFFICIALS WON'T CONFIRM THAT BUT THEY WILL ADMIT THE COSTS HAVE GONE UP

LANIE I HAVE HEARD THAT THE COST OF THE LVEC IS ABOUT 2 MILLION OVER BUDGET IS THAT ACCURATE?

I WOULD SAY THAT WE ARE CURRENTLY IN THE PROCESS ON FINALIZING A DOLLAR FIGURE. I CAN TELL YOU THAT WE ARE GOING TO COUNCIL NEXT WEEK TO MEET- IT IS SOMETHING THEY HAVE ASKED FOR AND WE WANT TO MAKE SURE THAT WHAT WE BRING IS ACCURATE--WE DON'T WANT TO BRING A FIGURE THAT IS A MAYBE.

THAT IS WHAT WE ARE IN THE PROCESS OF DOING

CITY COUNCILLORS WERE BRIEFED ON THE COST OVERRUNS THIS WEEK. WE ARE TOLD THE EXTRA TWO MILLION DOLLARS IS A RESULT OF SEVERAL FACTORS. FOR EXAMPLE THE ENVIRONMENTAL MONITORING WORK THAT HAS BEEN GOING ON ON THE LVEC, HIGHER COST OF FURNITURE AND CONCESSIONS, HIGHER COST OF INSTALLING CONCESSION STANDS--ALL THOSE PRICES HAVE GONE UP. AND THE LVEC'S OWN CONTINGENCY BUDGET--FIVE PERCENT OF TOTAL IS TOO LOW, AND NOW THEY ARE GOING TO HAVE TO BOOST THAT BUDGET AS WELL.

ALL OF THOSE FACTORS NOT INCLUDED IN THE ORIGINAL PRICE TAG OF 42.2 MILLION THAT COUNCIL APPROVED JUST OVER A YEAR AGO. SO AGAIN THE LVEC PROJECT MANAGER SAYS THERE WILL BE COST OVERRUNS, JUST HOW MUCH WE DON'T KNOW YET..

I THINK IT IS ALWAYS DIFFICULT FOR COUNCIL TO DEAL WITH ANY ADDITIONAL COST AND HOW IT WILL BE ADDRESSED. IT ISN'T EASY THIS PROJECT HAS BEEN A POINT OF INTEREST, SO IT ISN'T GOING TO BE EASY TO LOOK AT EXTRA COSTS AND ADDRESS THEM. I THINK IT IS A REALITY WE WILL HAVE TO ADDRESS.

WHAT WILL COUNCIL DO? WE ARE TOLD THAT CITY OFFICIALS NOW LOOKING AT WAYS TO FIND THE EXTRA MONEY--SOMEWHERE IN THE 2007 BUDGET TALKS. MAYBE TAP INTO RESERVE FUNDS CLEARLY THERE WILL BE PEOPLE SAYING TOLD YOU SO--THE ORIGINAL PRICE TAG WAS TOO LOW. POLITICIANS WILL GET OPTIONS FROM BUDGET TALKS WHICH RESUME ON WEDNESDAY--WHICH IS VALENTINE'S DAY. COULD BE A BITTERSWEET EXPERIENCE FOR ALL OF THEM