'Didn't meet the standard': Mace stops Riders practice twice
35m ago
The Saskatchewan Roughriders didn't practise up to their standard on Tuesday.
The City of Saskatoon released the total project costs for the Downtown Event and Entertainment District on Wednesday, estimating it will take $1.22 billion to make it a reality in 2024 prices. Of that, the city needs to produce roughly $400 million.
However, Chief Financial Officer Clae Hack said “The final construction decision, that’ll come years down the road.”
Once the funding is in place, the project would take five to six years to complete.
Hack said, “There is no risk as of today,” for council’s vote next week on whether to move forward with the project or not.
Currently, the city has spent over $40 million on land acquisitions, amongst other costs.
The Director of Technical Services Dan Willems said, “As far as consulting and administration time, I believe we’ve got about $2.5 to $3 million spent and we’re sitting around $1 million left in their budget.”
The project has been in the talks for roughly two years.
Chief Financial Officer Clae Hack, City of Saskatoon (Céline Grimard/650 CKOM)
Property Tax
Property Tax increases are so far not in the plan. “If the funding plan is seeing the revenue that it is expected to, that should be a non-issue,” Willems said.
The city is hoping property values will increase in the area resulting in more property tax being paid.
Revenue Sources
The city is relying on unsecured funds from seven revenue streams to pay off this project in 30 years. These include:
Accommodation Funding Contributions
Hotels would either have additional tax or the city would make a direct agreement with them.
Amusement Tax
Willems said under legislation they can include a 9.5 per cent ticket tax on ticketed events.
Parkade Revenues
The city is hoping to raise more than $572,000 per year until the arena is built. Once it’s built, the city expects it to bring in more than a million dollars a year.
Tax Incremental Financing
Hack explained new hotels and other businesses are likely to build next to an arena and the property taxes they pay could then help repay the project.
Property Realized Reserve Contribution
Funds from this reserve were used to purchase land downtown.
SaskTel Centre Reserve Contributions
Hack says they plan to use several million dollars from this reserve for the downpayment.
Private Partner Contribution
The City of Saskatoon is considering a private partnership with the facility management company OVG360, which is projected to contribute $20 million in up-front capital contribution.
Government Funding
According to Hack, preliminary conversations with the province won’t happen until council votes in favour of a plan.
No federal funding program exists to date for arenas.
“We’d be waiting on one,” said Hack. “There’s likely a federal election between now and any new grant programs would be announced.” He mentioned that convention centres have been covered in the past, but not arenas.
Willems added, “What would the city look like without SaskTel Center or without TCU Place? …Would we be able to attract newcomers and help major employers attract talent to our city without these types of amenities?”
Willems also said it was SaskTel Centre and TCU place that raised the flag about needing a major investment. Back in 2018, they proposed a business case to go with a district concept.
If city council decides to move forward, the next step is to confirm each of the seven funding sources.