Considering the climate in this region, it stands to reason that a permanent, indoor velodrome would help develop a substantial track culture. Unfortunately, cycling is at best a fringe sport here in Ontario so I won't be surprised if they bail on the idea and build up the cheapest temporary track possible.
The primary purpose of bringing a games like the Pan-Ams is to bring tourist dollars and any lasting infrastructure is just a bonus. I think most local would-be trackies have stars in their eyes about a place to train and race through the winter and aren't looking at it through the lens of the majority, non-cycling taxpayer. The only real chance this velodrome has is to show a high level of youth participation and engagement from other jurisdictions and hope that it starts to be perceived as a facility that will encourage athletics with youth and that there will be enough users to keep it afloat.
If it does go through, it will be really exciting to see what kind of athletes this area starts producing in the years that follow. Assuming that the velodrome in London continues to thrive, we could see track racing really blow up in southern Ontario.