Cost of new PNE Amphitheatre balloons to $103.7 million, up more than 60%

The budget for Vancouver’s new PNE amphitheatre has increased by more than 60 per cent, with Vancouver councillors approving an increase in loan financing for the project on Wednesday morning.

The new outdoor space was initially projected to cost $64.8 million, but a report to mayor and council from the Pacific National Exhibition and city manager now pegs the price tag at $103.7 million.

The PNE is expected to repay $77.8 million for the new amphitheatre over the next 11 years, and another $21.1 million for additional design elements over the next five years. It will not be funded by taxpayers.

“When the amphitheatre projected costs were done, the designs were not complete. Now we have a complete design for a fantastic new facility,” Coun. Sarah Kirby-Yung, PNE chair, told Global News.

“The business case for this facility and this amenity is really strong, and in fact, the sort of robust design actually provides for a stronger business case than was originally thought.”

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The city’s news release did not mention the swollen costs of the project, only that an increase in loan financing had been approved to reflect “updated design plans.” It said the additional investment will allow the PNE to repay its loans more quickly, as it now expects increased revenue.

Kirby-Yung said she felt the council had been fully transparent.

“Council had a really robust discussion today in our public council meeting and the report was there. It clearly articulates the cost … that report is available online, it was discussed in council today, it’s part of the public record, so I think there has been complete and full transparency about this.”

According to Wednesday’s report, “despite efforts made to limit the costs,” site configuration conflicts, soil remediation and additional equipment needs ballooned the budget, in addition to higher construction and design prices.

The report said that a “minimum viable facility” would now cost $82.6 million — $17.8 million more than the original tab — but that the PNE team had identified design elements that would generate additional revenue at a cost of $21.1 million.

The report further recommends the city increase its multi-year capital budget for the associated site-wide infrastructure renewal program from $4.6 million to $6 million, due to other cost escalations as well.

Kirby-Yung said it was important that the new facility was not “underbuilt,” and that the opportunity was seized to maximize its potential with state-of-the-art equipment and facilities.

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The new amphitheatre is expected to accommodate about 10,000 spectators, with an annual attendance of more than 340,000 people at more 75 performances. It will have one of the largest free-span timber roof structures in the world, will be built with sustainable products and will have multiple energy efficiency and environmental certifications.

“The PNE is excited to see this project move forward – this new investment will mean technology, features, and sound mitigation will be state-of-the-art from the moment it opens,” said Shelley Frost, PNE CEO, in the joint release.

“This new space will be a beautiful, inclusive venue, welcoming talent from across the world and enhancing summertime experiences for residents and visitors alike.”

The increased spending will be managed with the current annual capital expenditures budget. The amphitheatre is expected to open in 2026.