To the editor:
Last week the city revealed the financing report for funding for the proposed event centre. In the report the city stated that the city's share would be around $42 million or 40 per cent of the projected cost of $114.7 million dollars.
The Concerned Taxpayers of Thunder Bay believe the report is incorrect as the city's share is more likely to be closer to $80 million.
The report is nothing more than an illusion.
The federal government is giving the city no new money towards this project. The city plans to take money out of the federal gas tax fund which the city usually uses for roads and sewers.
The only funding the city might receive is from the provincial government and MPP Michael Gravelle has already disputed the amount, if any, they might give the city.
The $9.5 million the city states they hope to obtain through naming rights and a sponsorship program is very generous and not believable. Most arenas are lucky if they get $1.5 million for naming rights that are paid over a 10-year period and are paid in equal annual installments. A few years ago the city attempted to get naming rights for the Thunder Bay Community Auditorium and failed.
With regards to the cost to move the Thunder Bay Hydro station the city has stated that Thunder Bay Hydro will fund the estimated $4.3 million dollar cost. However, it will be the taxpayers who will pay for this as Thunder Bay Hydro has applied to the Ontario Energy Board to increase hydro fees to cover this expense.
A recent media poll of 548 respondants indicated that 87% said they do not support the Event Centre after reading the city's funding report.
Attatched is the city's breakdown for funding.
The Concerned Taxpayers of Thunder Bay have given a more likely comparison.
With regard to the option of a 50-50 split between the city and government sources city manager Tim Commisso stated " We're not recommending 50 per cent."
The city's share of funding for the proposed Event Centre is already well beyond this. That means stop!
The city should put this project on hold until the next municipal election. The city stated they did not give the citizens a vote on the proposed event centre in last year's election as they didn't know what question to ask and there wasn't enough time.
A plebiscite in the next election as to the need and location of a proposed new hockey arena could settle this once and for all and would help to unite a very divided city.
Raymond A. Smith, chairman of Concerned Taxpayers of Thunder Bay
