By Pepper Parr

June 8^th, 2026

BURLINGTON, ON

Staff presented a report on the background of the 1200 King Road development and set out the steps that should be taken going forward.

They first asked Council to endorse the updated scope of community facilities under consideration on the 1200 King Road development to include:

Event Centre (arena)

Community Centre (inclusive of aquatics and/or basketball facilities)

Recreational Ice Facility

Conference – multi-purpose space

Parking Facility

Direct the Chief Administrative Officer or designate to proceed with a Detailed Due Diligence Phase, inclusive of:

Community engagement;

Confirmation of available capital costs and operating models;

Negotiation with prospective partners and funding contributors, potential operators and other service delivery partners;

Evaluation of preferred financing options, including tax increment financing and funding from senior levels of government;

Development of a comprehensive business case and funding strategy; and

And to report back to Committee and Council with a recommended funding strategy, partnership model, and implementation plan for consideration prior to any capital or financial commitments, targeted for Q2, 2027; and

Instruct the CAO to proceed in accordance with the recommendations contained in confidential documents discussed in CLOSED session of Council. 26.

Executive Summary

The purpose of the report before Council this morning was to: Provide an update on the 1200 King Road community facility opportunity; Present an expanded scope of community facility opportunities for council consideration; Seek Council endorsement of an updated project scope; and Obtain authorization to proceed with detailed due diligence to develop a funding and delivery strategy.

Key findings:

The concept of partnering with the private sector to develop access to one or more community facilities aligns with Horizon 2050 and the City’s Live and Play Plan

Early indications suggest that a range of financial models exist which would permit the City to unlock access to upfront capital construction costs and/or offset municipal capital and operating contributions.

Research indicates that the full capital costs for an arena facility are estimated to be $150M to $200M. To construct multiple community facilities within a larger hub, the prospective  estimated costs rise to $300M.

A due diligence phase is necessary to determine which community facilities should be in-scope based on community need/benefit, the capital and operating costs associated as well as partnership and funding options available to offset municipal contributions.

If approved, it is anticipated that staff will report back in Q2 2027.

At this stage: Capital costs are not finalized; Operating impacts are unknown; Municipal contributions are not determined.

The requested authorization does not commit the City to capital funding or debt issuance.

Staff are seeking authority to enter a due diligence phase to further refine all of the above.

Background

In March 2024, Council considered report ECDEV-02-24 and directed staff to report back on future investment opportunities at 1200 King Road, including a detailed development concept and partnership framework. The property owners (Alinea Properties) have since advanced the vision for the site and through continued dialogue with City staff have identified a range of community facility options which could be located within the development site.

1200 King Road represents one of the last significant development opportunities within Burlington’s urban boundary and is uniquely positioned as a transit-oriented complete community.

The broader development is envisioned to include:  approximately 8,800 residential units, significant employment and institutional uses, retail, office, and campus uses,  integrated parks and open spaces.

As such, the opportunity to host a range of community facilities at this location represents a strategic opportunity to support planned population and employment growth, capitalize on existing transit infrastructure, act as a catalyst for increased economic and tourism growth and meet future recreation and event infrastructure needs.

When completely built out – this is what the development might look like.

A key differentiator with the 1200 King Road development in comparison to other transit- oriented community developments across the GTHA is that the site already benefits from existing two-way all day GO Transit service, coupled with easy access to highways. This reduced reliance on future provincial infrastructure investment will accelerate the market demand while also allowing the City to prioritize its advocacy efforts beyond transit infrastructure.

Is the Aldershot GO station parking space at capacity?

The concept of hosting a range of community facilities at 1200 King Road strongly aligns with Council’s approved Horizon 2050 vision and long-term city-building objectives, including: Complete Communities: Supporting the development of a mixed-use, transit-oriented community that integrates housing, employment, recreation, and culture in a compact urban form; Mobility and Transit Integration: Leveraging proximity to the Aldershot GO Station to advance intensification in a Major Transit Station Area (MTSA) thus reducing the reliance on automobile travel.

Finalized in 2024, the Burlington Live and Play Plan is the City’s recreational facilities masterplan and outlines long-term programming and space needs. A range of high – level recommendations and options align with the concept of increased community access to recreational facilities.

Data suggests there is existing pressure on the current ice pads provided for community use, and that exploration of options to accommodate future need should be explored. ‘Among the options:

Acquire a new site large enough to accommodate a twin pad arena, gymnasium, indoor walking track, multi – purpose spaces, and potentially an indoor pool. Developing a site concept should confirm site size requirements’.

One of the recommendations is to explore partnership opportunities to meet current and future ice needs, potentially through new ice pad development with the private sector or increasing access to existing non-municipal ice operators’.  Monitoring space needs in Mixed Use Intensification Areas (MTSAs) with consideration given to partnership opportunities with the development industry to incorporate multi-purpose programmable space within condominium buildings, which should have regard for public access, flexible and sufficiently sized spaces, parking accommodation, and supporting amenities such as storage spaces and countertops. As population increases in Mixed Use Intensification Areas, consideration may also be given to leasing space.

The following map highlights the number of City owned (or accessible) gymnasiums for public use. Since this map was created, two additional City operated spaces have begun to operate (Bateman and Skyview community centres respectively). Both are located in the southeastern quadrant of the city. The map indicates there is no City operated gymnasium on the west side of Burlington.

Skyway Community Centre located in the eastern side of the city.

Bateman Community Centre

Analysis

Through discussions primarily led by the property owners, the potential options of community facilities have evolved beyond the initial concept presented in 2024 and now include:

Arena/Event Centre (5,000–7,000 capacity)

Community Centre

Recreational Ice Facility

Aquatics facility (50m pool and leisure pool)

Basketball facility

Multi-story parking lot (either fully or partially owned by the City)

Integration of a hotel conference/multi-purpose space through a public/private sector partnership

Each facility has the potential to provide standalone community value; however, a consolidated, hub of community facilities should generate significantly greater economic, social, and operational benefits. As well as allowing the City to unlock a variety of standalone funding sources and partnership opportunities, thus offsetting municipal capital and operating contributions via a consolidation of these sources.

While City staff is recommending that the scope of community facilities be expansive at this early stage, the specialist consultancy firm engaged in conducting analysis on behalf of the City recommends the prioritization of the Arena/Event Centre, Ice Facility, hospitality and event infrastructure partnerships (hotel and parking lot).

Secondary components include aquatics, basketball, and community centre expansion.  These remain important components but not an immediate focus from a funding and partnership perspective. That said, the City should be ready to act should funding from an alternative level of government or a partnership opportunity emerge which makes these elements fiscally viable in the shorter term.

Staff are proposing a three-phase approach:

Phase 1 – Scope Endorsement (Current Report)

Council endorses project scope

Authorization to proceed with due diligence.

Phase 2 – Due Diligence (finalized early 2027)

Detailed business case and financial modelling;

Partner negotiations and funding commitments;

Council consideration of finalized scope, financing and partnership approach.

Phase 3 – Implementation (2027+)

Final design and procurement

Council approval of capital and operating commitments

Construction and delivery.

Implications

An early capital cost estimate for an arena/event centre would conservatively cost around $150M–$200M. This estimate is based on our specialist consultants research and knowledge of similar projects across Canada. A full build – out including multiple facilities as described would exceed $200M and likely be closer to $300M.

The final scope of community facilities recommended to proceed, along with projected capital and operating costs, will be determined through the proposed due diligence phase. Accompanying this, will be a more concrete revenue/funding/partnership stream intended to offset the necessary municipal capital and operating contribution.

Research has identified a variety of funding sources and partnership models which could significantly offset impact on the existing municipal tax base. Further work is necessary to determine the maximum amount of funding available across these sources and how best to unlock these funding amounts through appropriate partnership agreements and advocacy.

Potential Funding Sources

A range of funding tools have been identified, including: Senior Government Funding, Public-Private Partnerships, Tax Increment Financing (TIF), Municipal Sources, Reallocation of operating and capital budgets from aging facilities,  Revenue Commitments by facility user groups.

Paul Paletta, President of Alinea Land Group, has been waiting a long time for this development to get to where it is today.

Ownership and operating models will significantly influence potential municipal financial exposure and the ability to unlock funding from other levels of government. It will also be important to consider this project in the context of other competing community development priorities, as well as the City’s ability to develop a financial model which aligns existing fiscal capacity and limitations.

Private Facility Operator Partnership/Agreement

One funding opportunity worthy of exploration is a long-term (typically 20 to 30 year) operating agreement with a private facility operator. This model has been leveraged by a variety of municipalities to unlock a high degree of upfront capital to support initial construction, with the facility operator recovering their initial investment plus revenues through effective facility management over the duration of the contract term (securing events and activities, ticket surcharges, naming rights, sponsorships, food and beverage sales, suite rentals).

There are a range of benefits to the City, should it pursue this model. A reduction in the upfront capital contribution necessary for facility construction, sharing of financial risk, improved revenue performance, access to professional venue management expertise, increased likelihood of attracting major events and tenants.

Preliminary conversations have occurred between the property owner, the City and facility management companies, and early indications suggest there is interest in pursuing this type of agreement.

Approval of the due diligence phase would permit City staff to enter into formal negotiations with the landowner and appropriate facility operators to establish contractual terms for future Council consideration.

Whatever recommendation comes of out the Standing Committee will go to Council for final approval on  June 23, 2026