Telus CEO Darren Entwistle described the B.C. government’s cancellation of a $40 million contract that would have allowed it to rename BC Place Stadium as “regrettable.”
“We are deeply disappointed with this decision,” Entwistle said in a March 7 statement after Pat Bell, the minister of jobs, tourism and innovation, claimed the deal “did not provide best value for taxpayers.”
Telus (TSX-T) spent as much as $15 million installing video screens and mobile phone and Wi-Fi antennas. The BC Pavilion Corp. (PavCo) was so close to announcing Telus as the naming sponsor that it paid $60,510 for Telus marquee signage footing and reinforced steel and $30,277 to remove the BC Place sign last August.
The biggest signal that the deal was over came last month when stadium workers, who were issued generic shirts and jackets last September, finally received BC Place-branded clothing.
Telus privately opposed the Vancouver Whitecaps’ branding of the field as Bell Pitch, but publicly acknowledged the difficulty crews had working in the stadium. Construction problems restricted their ability to install and test equipment before the September 30, 2011, reopening.
“It was a fantastic feat of engineering by our team members. They were so under the gun from a testing front, they literally ran out of time,” Entwistle said after a March 2 news conference.
He conceded that Telus remains in talks to be designated an official supplier. The sale of naming rights and land leases were part of PavCo chairman David Podmore’s plan to soften the blow on taxpayers for the budgeted $563 million renovation. Vancouver city council approved Paragon Gaming’s bid to move Edgewater Casino to the west side of the stadium last year, but quashed an expansion proposal.
The PavCo service plan from 2012-13 to 2014-15 contemplates cumulative operating losses at BC Place of $49 million.
The stadium, however, could have a bigger problem.
Grease leaking from the roof support cables has damaged the fabric roof, and BC Supreme Court Justice Jon Sigurdson heard March 6 that the cost to repair it could be as high as $10 million.
Cable installer Freyssinet, which is headquartered in France, sued Quebec-based Canam Group for almost $6.5 million on October 31, 2011. Steel contractor Canam responded with a $26.15 million counterclaim on November 18, 2011. An 85-day trial is expected to begin in October 2013. Leaks in the stadium’s roof were discovered in November 2010. Supplier Geobrugg, which is headquartered in Switzerland, claimed in a September 9, 2011, report that lubricant was used to protect interior steel wires from corrosion.
Podmore did not respond to interview requests. BC Place spokesman Duncan Blomfield said CEO Warren Buckley was unavailable because he was travelling. Blomfield claimed lubricant stains are “unnoticeable without close inspection,” and he estimated the cost of repairs at less than $1 million.
“This excess lubricant is a contractor deficiency and all costs associated with cleaning and repair are the contractors’ costs not PavCo’s cost as it is a fixed price contract,” Blomfield said.
A Business in Vancouver request to view the damaged fabric was not fulfilled.
Canam was hired as a $122 million subcontractor by PCL Constructors Westcoast. Canam, in turn, hired Freyssinet for $30 million. In April 2011, Canam blamed a $25 million cost overrun on Freyssinet. Troubles with the cable installation delayed application of the roof fabric to July 2011, which delayed Telus’ installation schedule. •
