THUNDER BAY -- The city's administration will have a lot of questions to answer Thursday about the proposed event centre but thinks it's up to the task.
On Monday city council received an update on Phase Four of the project and recommended next steps, which includes using $23 million of federal gas tax funding over the next decade to pay for the 235,650 square-foot facility.
The $114 million project would also need $23 million from Renew Thunder Bay, a $16.9 million debenture, $36 million from the province, $9.5 million in private funding and $4.3 million from Thunder Bay Hydro to move its substation. That price also includes $2 million from the city's land development account.
The city is hoping to hear back form senior levels of government by the end of April but city manager Tim Commisso said that's being optimistic.
"They are not in a position to confirm anything by the end of March and there is no guarantee quite frankly by the end of April,” he said Monday.
Many councillors were concerned about the federal gas tax funding, which administration said will be presented Thursday along with a history of what's historically been funded in the city through the program. Last April the federal government expanded eligibility to include sports, culture and recreation rather than typical infrastructure and transit projects. Coun. Rebecca Johnson wants to see a plan as to what projects were supposed to be funded and what would be cut by the city over the coming decade should council decide to use the money for its event centre.
"What will they do to make up those dollars because they’re not new dollars from the feds?” she said.
Administration's report states the city would try and access $21.1 million from the gas tax's convention and conference funding, another $1.9 million for a new bus terminal and still be able to access more than $45 million over the next decade for roads, nearly $10 million more than it's received between 2006 and 2015. But the city also received an additional $20 million in those same years for transit, sewers, storm sewers and waterworks.
With more than $288 million in debt already and $6.7 million in interest every year already, Johnson also wants to know what additional debt and interest for the event centre would add up to.
If the city is using the federal funding over the next decade but using it to build the centre, Coun. Rydholm wants a detailed financial plan for how the city would pay for the capital costs up front.
"I would expect contractors don’t want to wait nine years to be paid," she said.
Coun. Brian McKinnon asked for more information on the city's deal with True North Entertainment and its AHL team, which is moving from St. John's to Winnipeg.
To-date the project has cost $3.8 million, $1.8 million of that coming from senior levels of government.
On Thursday council will vote to continue the process and extend a letter of intent with Thunder Bay Live Consortium until the end of April.
