FACT: The combined budget of $211 million was just finalized and approved for the Kamloops Centre for the Arts, and is the highest amount that will be required to not only build and fully fit-out the Kamloops Centre for the Arts, but also an additional level of parking, all site costs (such as third party utility relocations, streetscape improvements, and landscaping), and professional fees. In addition, this total includes allowances for construction contingencies, material escalation, and all potential risks that could be faced during construction. As the project progresses and potential risks are retired (i.e. risks are not realized, escalation isn’t as high as expected, etc), Council will have the option to reinvest savings into the project or use them to reduce the overall project cost. Short of a pandemic-level disruption or similar force majeure event, this total reflects maximum allowable cost, adjusted to 2025 dollars and supported by a fully developed design.

This is not a matter of being “over budget”. In February 2024, Council authorized staff to complete the validation and detailed design phase of the Kamloops Centre for the Arts, resulting in a Class A estimate for the project. That process was completed in August 2025, and staff proceeded to develop a funding strategy for the construction and fit-out, the soft costs, and the additional parkade option. Staff presented the validated Class A estimate to Council in November, and Council approved the funding strategy and the additional parkade.

As the validation process proceeded, Council sought public approval to borrow up to $140 million over 30 years to fund the construction of the Kamloops Centre for the Arts. This amount was determined in consideration of other borrowing requirements (i.e. Arena Multiplex, Kamloops Police Services, and other projects) to stay within municipal borrowing limits, minimize the impact of the borrowing on Kamloops taxpayers, and still cover a significant portion of the construction cost. At the time, the estimated total cost of the construction was $154 million. Through the design and validation process, the integrated project delivery team created a Class A estimate of $150.5 million to construct the Kamloops Centre for the Arts. The borrowing was approved in September 2024 and will be financed through a 1% tax increase per year for 5 years (2024-2028). This increase supports not only the borrowing to construct the Kamloops Centre for the Arts but also borrowing for the design and construction of the Arena Multiplex and preliminary work on other Build Kamloops projects.

The funding plan is designed to avoid additional borrowing or tax increases and follows the original funding strategy outlined in June 2024, using a mix of debt, reserves, fundraising, and reallocation of existing funds. Over $1 million in community donations has already been contributed to the project. In addition, the City is actively applying for grants, such as the Strategic Priorities Fund (up to $7 million for the Kamloops Centre for the Arts), and will continue to seek further grant and investment opportunities throughout the project.

Bottom line: The project is not over budget. The $211 million figure is a combined budget for construction and fit out; soft costs, site costs, and allowances; and the additional parkade. It is the maximum, risk-adjusted budget, designed to protect taxpayers and deliver a fully realized facility with no additional borrowing or tax increases.

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