FACT: The failed AAP challenge for the Kamloops Centre for the Arts and the Kamloops Arena Multiplex resulted in real and measurable financial impacts due to inflation, project delays, and increased risk exposure.

During the AAP challenge period, construction activity was effectively paused for approximately eight months, at a time when inflation was running at 5% (now stabilized closer to 3%). Eight months represents roughly 67% of a fiscal year, or an estimated 3.35% inflationary impact.

For the Kamloops Centre for the Arts, this delay alone accounts for approximately $7.06 million of the total project budget of $211 million. Had the project proceeded as originally planned, it is estimated the cost could have been closer to $203.93 million.

Applying the same inflationary assumptions to the Kamloops Arena Multiplex, the AAP delay has already increased the project budget by an estimated $4.99 million, although the project budget has not yet been finalized.

In addition to inflationary impacts, the AAP challenge created uncertainty that negatively affected donor fundraising, as private donors typically require confidence and momentum before committing funds to large community projects.

In short, while the AAP challenge did not change the approved project scope, it increased costs, paused progress, and introduced financial risk that otherwise could have been avoided.

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