THUNDER BAY – A veteran city councillor said unless new information is presented, she will not be supporting the proposed event centre under the current funding formula.
Coun. Rebecca Johnson on Monday told tbnewswatch she is not in favour of reallocating money from Ottawa to create the perception of federal funding or scaling down the project just to make the costs more palatable.
“I am not prepared to take money from the gas tax and reallocate it to the event centre. Those dollars have been set aside in our long term financial plan for infrastructure. There is no means to replace those dollars outside of raising taxes, which I will not vote for,” Johnson said in an email.
City officials unveiled the latest financial implications of the project last week, where they announced the federal contribution would come from $21 million in gas tax allocations while Ontario is being counted on to chip in $36 million.
That announcement drew the ire of MPP Michael Gravelle (Lib., Thunder Bay-Superior North), who told tbnewswatch the province should not be expected to be contribute more than the federal government.
Gravelle later met with Mayor Keith Hobbs and city manager Tim Commisso to discuss the financial plan.
Council will receive that report at Monday’s meeting before voting on Thursday during a special meeting on whether to proceed to Phase 5, which would grant conditional approval to begin detailed design and construction if funding comes through.
Johnson said she can’t support the project if it results in an increase to the municipal tax levy.
“I cannot support an additional one per cent increase in the tax levy,” she said. “I did not support the three plus per cent tax increase and will not support any further increase.”
Meanwhile, a vocal opponent of the project says he believes the city could be on the hook for as much as 75 per cent of the project cost if it goes ahead.
Ray Smith, the chairman of the Concerns Taxpayers of Thunder Bay citizens’ group, held a rally at the Fort William Gardens on Monday and said he expects the city’s share to increase to more than $86 million, rather than the $46 million announced by municipal officials last week.
“We eliminated the federal portion because that’s not new money,” Smith said. “Whether we build this or not, we’re going to get the $21 million. The only thing the federal government might give us is $1.9 million to move the bus terminal.”
Smith slashed the provincial share to $23 million from $36 million, arguing the province will likely only match whatever the federal government contributes.
He also disagrees with the city anticipating $9.5 million in private sector contributions, instead estimating naming rights, sponsorship and other private funds to total $3 million.
“We would be very fortunate, I think, if we got $1 million over 10 years or $100,000 per year,” Smith said. “When they tried for the Thunder Bay Community Auditorium it never went anywhere and this city isn’t exactly booming so I don’t think we’re going to be running down to city hall with $1 million cheques.”
From what he has heard, there is no stomach for that kind of increase while costs have already been increasing.
“I think the taxpayers are feeling pretty stressed out right now with the tax and water rate increases,” he said.
Smith said he intends to appear before council on Thursday to give a deputation.
