City needs provincial, federal dollars for proposed multiplex: Commisso

The city needs to be able to leverage funding if it wants a new mutli-purpose events centre, the city manager told council Monday night.
 
Tim Commisso presented five potential locations with various site options during council’s regular scheduled Monday night meeting at city hall for a proposed 6,500 fixed-seat arena and convention centre. The price tag, which could be as high as $128.2 million total if Pool 6 was the chosen site, should not exceed one-third of the total cost or else it might not be worth considering, the city manager warned.

"The success of this project is tied to our ability to leverage funds," he said.

With the city’s Renew Thunder Bay fund expected to top $25 million, collecting more than $1 million in interest annually, the municipal contribution is there. But with the province’s Northern Ontario Growth Plan stating that funding priority will be given to projects that strengthen community cores, Commisso told council he would be surprised if Ontario funded a site that didn’t match that criteria.

The city’s cheapest option, at an estimated $62.5 million arena and $11.1 million convention centre, is located on the North side of town on the current Water Street bus terminal site. Council was shown options that include a mutli-purpose centre removing the bus terminal altogether or limiting the convention centre to 20,000 square feet, down from the anticipated 50,000.

But the city manager warned council that cities such as Duluth, one of six centres used to compare with the Thunder Bay plan, make more money off of conventions than entertainment. Thunder Bay property agent Joel DePeuter told council that a new transit master plan might remove the need for a bus terminal in the coming years though.

"It may turn out that a transit terminal on the north side is not required at all," DePeuter said.

Commisso said when other sites, such as Innova Park and land near the Thunder Bay Airport, were considered, the city didn’t know Ontario’s growth plan would have a downtown core element to funding priorities.

But the presentation Monday wasn’t about preferred sites, but about bringing council up-to-date on where plans for the project are.

The city manager has presented five reports to council, with another one on business model options expected by May 30. The city is hoping to have its feasibility study completed by June of next year.

Council approved a public consultation meeting that is scheduled for next month. A report from that meeting is expected by the end of June.