THUNDER BAY – Thunder Bay’s mayor isn’t too concerned at the news the city has missed out on provincial funding for its proposed multi-use indoor sports complex.
The funding was never built into cost estimates for the project, said Mayor Bill Mauro, while the city continues to seek a variety of funding from other sources.
The city received a rejection letter Monday for an application for $650,000 in funding through the Northern Ontario Heritage Fund Corporation (NOHFC), which cited high demand for funding as a reason for denial. The money would have helped cover development and design costs for the facility.
The city’s cost estimates for the project, which city council approved to proceed to tender in August, don’t rely on provincial or federal support, Mauro pointed out Friday.
“The estimated price did not have this application built into it, so being declined by the NOHFC doesn’t represent an increase on the cost side for us,” he said.
The complex’s sticker price is pegged at $33.6 million, but costs are expected to rise to $42 million if the city receives no support from the provincial or federal governments. That’s thanks to interest payments on a $14 million debenture – essentially a loan – the city would require to pay for the project.
A review by the city’s Community Economic Development Commission (CEDC) earlier this year suggested actual costs to the city could exceed $48 million.
The city has long sought support from upper levels of government, applying for around $1 million through NOHFC and FedNor (including the now-denied application), and nearly $22 million in federal infrastructure funding.
The city will no longer be eligible for that larger pot of funding once the project’s tendered contract is awarded – expected to occur in February.
In the denial letter from NOHFC, provided to TBT News by the city, the agency cites high demand for funding.
“The NOHFC receives many project applications and as a result, demand on the Northern Ontario Heritage Fund is high. Regrettably, not all projects can be supported,” it reads.
General manager, community services Kelly Robertson said there remained possible opportunities for NOHFC funding in the future, including through the agency’s Strategic Economic Infrastructure Program. Like most NOHFC funding streams, it’s been suspended until the first quarter of 2021 as the agency retools to put a greater focus on COVID-19 recovery.
The city has plenty of time to pursue other funding sources before taking out a large debenture, Mauro maintained.
“There’s still fully two years before the debenture goes on the city’s books, so we’ve still got time to try to find some other funding sources,” he said.
He hinted efforts were underway for other major infrastructure projects, as well.
“Certainly there will be opportunities, and the city will position itself the best we can – whether it’s for the multi-turf program, the conservatory, or Victoriaville, we’re always looking for opportunities to make applications to senior orders of government for a variety of projects,” he said.
