Less than two weeks after being turned down by the federal government in their bid for $20 million to help pay for a new events centre, city officials say the plan may be back on track.
City manager Tim Commisso, in a release issued on Tuesday, said the feds have told Thunder Bay the convention/trade centre portion of the $80-million project is eligible for P3 Canada funding in the next round of allocations.
The city was originally turned down for a number of reasons, including not having a viable site plan and economic impact statement, as well as the nature of the project itself.
Some clarification from Ottawa helped clear the air this time around, Commisso said.
“We followed up. We wanted to know what was behind the decision of a couple of weeks ago. We were able to get some clarity behind it," Commisso said. "Really it was what we anticipated. It was a policy decision that was made at the federal level that certainly was broad-based and excluded any sport and recreation projects from the P3 fund."
When Thunder Bay originally applied for third-round money, the category was in place.
"What they did confirm is that if we have a component of the project which is a convention centre or trade show facility, which we'll be looking at, that that component is certainly eligible and if there's a fourth intake (of P3 funding), which I anticipate there will be, we can certainly submit that component for that back into the P3 funding," Commisso said.
There is recent precedent for federal dollars being injected into convention centre projects.
Earlier this year in Halifax Ottawa committed $51 million toward the Maritime city’s new world trade and convention centre, with both the city and province of Nova Scotia kicking in $56 million apiece. It’s part of a $500-million private development that also includes a hotel, financial centre and retail space. However, a sports facility in Calgary had its application turned down in the third round of funding.
It’s expected Thunder Bay will make its next application in the late spring or early summer, he added, once a business plan with projected revenues has been completed, something administration is working on in a $125,000 phase 2 feasibility study, paid for through the federally funded FedNor agency.
“We’ve also learned that P3 Canada has reduced the minimum capital project expenditure threshold to $20 million, which may help in the long run,” Commisso said.
The city has committed about $25 million of municipal money, through the TBayTel-sponsored Renew Thunder Bay fund, to cover its portion of the cost. Commisso said the province will also be tapped for a share, as possibly will the private sector, though no requests for proposals have been issued by the city as of yet.
Once again the city manager reiterated the project likely won't go ahead without federal dollars, a fact Mayor Keith Hobbs confirmed.
Hobbs, who said he's heard little opposition to the project, said city council likely wouldn't want to accrue long-term debt to make the events centre happen no matter what.
"It has to be affordable and it has to be sustainable. If we don't receive funding from the Feds and the province, this is going to be a no-go. I don't think there is a stomach for debentures for this kind of project right now. I could be wrong on that, depending on how council wants to proceed with it," Hobbs said.
"I know I'm hearing loud and clear that we need federal and provincial money to make it go forward."
Asked if it should be included on the 2014 municipal ballot, the mayor said it might not work with the current timetable to hold a referendum on building the facility, which would include a new arena to replace the aging 60-year-old Fort William Gardens.
"I'd like to see us proceed before that on this project," he said. "I think this is a great legacy project for Thunder Bay, and like the city manager alluded to, it's going to be a great project to attract people to this area."
The P3 Canada fund is a $1.2-billion nest egg set aside by the federal government to help municipalities across the country pay for large-scale infrastructure projects.
Eligible projects include water and wastewater infrastructure, public transit, core national highways, green energy, cultural projects, connectivity and broadband, local roads, rail, shipping and airports, to name just a few of the 15 categories.
More than 120 municipalities applied for the third round of allocations, which left Thunder Bay on the outside looking in.
Of the six projects confirmed since May 2010, only one, a $5.8 million transit improvement in Barrie, has been approved in Ontario, though more are expected when the third round is officially finalized.
Thunder Bay has put together a consortium of expert consultants to help them with their bid, a group that includes CEI Architects, PricewaterhouseCoopers and True Grit Consulting. The study must be completed by the end of March 2012.
The study will include final site selection, proposed facility design and concepts for each site, confirmation of capital funding and a business model and the economic impact analysis.
The group is expected to meet with city officials in early January.
