Saskatoon council approves $25M land purchase for downtown arena site

Saskatoon’s city council voted unanimously Wednesday to proceed with the purchase of land for the city’s planned downtown arena.

Council approved the $25-million purchase of the Midtown Shopping Center north parking lot, the location which city administration recommended over the other option, the downtown city yards.

Mayor Charlie Clark called Wednesday’s decision a “pivotal moment” for Saskatoon.

Saskatoon’s city council discusses the proposed location for the new downtown arena on Nov. 16, 2022. (Libby Giesbrecht/650 CKOM)

“This is probably one of the most significant decisions that’s been made to shape the city and shape the downtown for the last 50 years,” Clark said.

Clark said it is impossible to share the full costs of the project with residents without a location selected and a plan in place, because the design process needs to take the location into account.

“That was very complicated to get to this point,” he said.

The central location of the lot — close in proximity to restaurants, bars, hotels and TCU Place — was a recurring theme during the meeting.

Clark emphasized the need for a vibrant, inclusive downtown that will bring and keep families, businesses and opportunities to Saskatoon, and said he already sees the city becoming a more global and modern. The city as it stands today is not the same city it will be in a few years, Clark said.

The $25-million cost of the site purchase — which is set to be finalized as soon as the details can be sorted out — will be covered by Saskatoon’s land branch (or property realized reserve), which has amassed $90 million from land sales by the city.

Once the land is purchased, Clark said it will have long-term benefits for the city even if the arena project does not come to fruition.

How the remaining costs of the project will be covered has not yet been determined.

“That’s the tricky part,” Clark said.

“I absolutely would want to see a project where we don’t rely on property taxes.”

The mayor said city administration has been directed to explore every option so the city can proceed with the downtown entertainment district project with minimal effects on property taxes.

Clark said possible funding options include money from the provincial or federal governments, hotel levies and fees on tickets.

The mayor said the city will review all the options once the total cost is known, and will then develop a financial plan.

During the four-and-a-half hour long special meeting, Saskatoon’s city council heard from citizens, business owners and organizations including Downtown YXE and Tourism Saskatchewan.

Representatives from SaskTel Centre and the hospitality industry noted they’ve lost out on significant income opportunities because Saskatoon has been passed over as a venue for larger shows and events as a result of the limitations of the current arena.

While all councillors present voiced their support for the chosen location, several expressed concerns they have in moving forward with the process to create a downtown entertainment district.

Ward 9’s Bev Dubois said she supported the choice of location, but emphasized a need for more transparency on the part of the city as the project continues.

Dubois said she wants to see better engagement with the people of Saskatoon about the project and, most importantly, wants the city to be transparent and forthcoming with the public about the costs — and the fact that the city doesn’t yet know how large the final price tag will be.

Sarina Gersher, councillor for Ward 8, said she’d like to see more information about the bus rapid transit station that would need to be built as a critical part of the proposed entertainment district. Gersher said she didn’t feel as though she had all the answers she needed around that aspect of the project at the end of Wednesday’s special council meeting.

She also echoed other councillors’ desire for the project to move forward with no effect on property taxes, and promised to closely examine the completed funding plans when they are presented to council next year.

Gersher said people want to know the price of this project, and residents want reassurance that they won’t be the ones shouldering the cost.