THUNDER BAY -- A new report recommends city council moves forward with the detailed design and construction of the full-scale, $114.7 million event centre pending provincial and federal funding.
City administration will provide an update on phase four of the event centre plan, including a breakdown of the financing plan, and ask council on Monday to extend the letter of intent with Thunder Bay Live Consortium by one month to April 20, 2015 to secure government funding.
It will also be recommended council proceed to phase five of the project – the detailed design and construction. However, that’s conditional on provincial and federal funding.
The project is the approved design set out in the phase three feasibility study; it includes 5,730 fixed seats and 66,000 square feet of convention, trade and exhibition space. The city estimates the facility would host about 200 events annually.
The cost of the facility is outlined as 60 per cent coming from the federal and provincial governments and the private sector withthe remaining 40 per cent covered by the municipality.
The provincial government would be responsible for $36 million of the proposed event centre and the federal government would cover $23 million through the Gas Tax Fund.
That fund lists sports, cultural, tourism and recreation infrastructure as eligible projects.
Mayor Keith Hobbs said if approved by Infrastructure Canada, using the Gas Tax Fund money for the event centre won’t take away from other infrastructure like roads and sewer.
“We’re going to be putting more money into roads and we’re going to continue the path we have and it’s affordable. We can do that with the gas tax and enhanced infrastructure renewal program,” said Hobbs.
Roadwork and other infrastructure projects can also be funded through the Ontario gas tax and the city’s water and sewer now have their own 20-year plans that don’t include funding from the federal gas tax.
Hobbs also said the event centre is infrastructure of a different kind.
“I don’t want this to be the council that just works on roads and storm sewers. We have to build this city and that includes infrastructure buildings and legacy projects for our children and grandchildren,” he said.
The city’s portion of the funding includes $23 million from the Renew Thunder Bay Reserve Fund and $16.9 million through a 25-year debenture.
The city projects private sector funding sources through a corporate naming and sponsorship program at $9.5 million.
The financing also includes Thunder Bay Hydro paying the $4.3 million needed to relocate its Camelot Street substation.
The impact on taxpayers is slightly less than the phase three report projected in September of last year as the impact on the city’s tax levy is now predicted to be one per cent, down from 1.1 per cent.
“For 63 years of my life that I’ve been alive, Fort William Gardens has been around and we’ve enjoyed it. I hear the biggest gripes from baby boomers who have enjoyed that facility and to me, it’s selfish. Let’s building something for our children and our grandchildren and let them enjoy what we’ve enjoyed for the last 60 years,” said Hobbs.
A meeting will be held on March 26 for a decision on the next steps of the project and members of the public who wish to make a deputation to council at that meeting can register to do so through the city clerk's office.
If funding doesn't come from both levels of upper government, Hobbs said the city could look at debenturing the whole project, but he doesn't want to do that.
"If we're told by the feds and the province we're not getting funding, I can pretty well assure you this will be put on hold," he said.
