New PNE Amphitheatre budget grows to $104 million

Artistic rendering of the new PNE Amphitheatre. (Revery Architecture/PNE)

The PNE is set to build its first major new permanent entertainment venue at Hastings Park since the construction of the Pacific Coliseum in the 1960s, which successfully served its intended purpose of attracting the NHL to Vancouver.

Construction on the new replacement PNE Amphitheatre — a capacity for up to 10,000 spectators, boasting a landmark world-class design of a giant free-span timber roof — is set to begin in early 2024 for a completion by Summer 2026.

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Ahead of the start of construction, Vancouver City Council is being asked to approve the revised increased budget and construction financing framework to support the design that was publicly unveiled in April 2023, enhanced revenue-generating features, increased costs due to site conditions, and inflation due to general market conditions. Next week, City Council is expected to fully approve the recommendations by City staff to increase the project’s budget and financing framework.

pne amphitheatre new design revery architecture

Artistic rendering of the new PNE Amphitheatre. (Revery Architecture/PNE)

The project now carries a total construction cost of about $104 million — up by $17.8 million from the previously estimated budget of $64.8 million approved in 2021, before detailed design and engineering work was performed.

This new total budget includes the $82.6-million cost of building the base design of a “minimum viable facility.” Value-engineering design considerations have already been maximized to reduce the cost, but without impacting revenue-generating design components.

The remaining $21.1 million comes from enhanced design components that would generate additional revenue, such as a larger back of house to support bigger and more complex productions, additional VIP suites, and three permanent concession facilities including a full production kitchen. There would also be 25 more washroom units to help support the venue’s maximum spectator capacity, as well as a sound containing wall.

The revenue-generating design components will produce $4.75 million in additional net revenue each year, based on the venue’s hosting of 30 large events annually. This includes the sponsorship of newly funded amenities, higher food and beverage spend per individual based on the PNE’s recent sales figures, increased producer charges for the use of the sound system, and higher sales revenues from the use of the VIP suites.

Artistic rendering of the new PNE Amphitheatre. (Revery Architecture/PNE)

When the previous makeup of City Council approved the project in 2021, the construction was to be financed by a repayable loan from the municipal government’s capital financing fund.

This repayable loan has now been restructured into two different loans, and it maintains the plan to achieve the project as 100% self-funded by the PNE.

One smaller loan to support the $21.1 million cost for enhanced revenue-generating design components will be repaid within five years.

The larger main loan to support the base design cost of $82.6 million has a 23-year repayment schedule, but the PNE anticipates it will be able to expedite full repayment to 11 years due to the enhanced revenue-generating design components.

Separately, the site-wide infrastructure upgrades to support the new amphitheatre will increase by $1.4 million to $6 million due to cost escalation. This will come from the Hastings Park Reserve.

Naming rights sponsorship of the venue will also generate additional revenue. According to the PNE, their ongoing bidding process for the venue’s various sponsorship opportunities has “generated significant interest.”

Artistic rendering of the new PNE Amphitheatre. (Revery Architecture/PNE)

The existing PNE Amphitheatre, and the footprint of the new venue. (PNE)

The new amphitheatre will be built on the footprint of the existing 1960s-built amphitheatre, which is currently in very poor condition as it was meant to be a temporary venue. It also lacks back-of-house facilities, amenities, concessions, washrooms, accessibility considerations, and a roof for its outdoor space.

The existing amphitheatre attracts an average of five events per year outside of the PNE Fair period, but the new amphitheatre — with a roof cover and modern facilities and amenities — is expected to host 78 shows annually by its fifth year of operations, including 48 commercial/corporate events and 30 community events. The roof cover, in particular, significantly expands the venue’s operating season, and the built-in amenities and equipment will lower the cost of putting on events for non-profit groups. According to the PNE, there is a very strong business case to support the project’s implementation.

Designed by Vancouver-based Revery Architecture, the new amphitheatre’s vaulted roof is anchored by three points, and structured in a way that frames views of the North Shore mountains — made possible by a clear span of 105 metres (345 ft) from buttress tip to buttress tip, created by “six-barrel vaulted segments intersecting at diagonal planes.” The overall design is inspired by the shell of the 1950s-built CNIT building in Paris.

It will be built to Passive House and LEED green building standards, along with state-of-the-art sound and acoustic considerations to reduce the noise bleed out of Hastings Park.

Artistic rendering of the new PNE Amphitheatre. (Revery Architecture/PNE)

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