Featured image credit: City of Saskatoon
The City of Saskatoon has laid out a funding plan for its proposed C$1.22bn (£684m/€807.3m/$897.7m) Downtown Event and Entertainment District, with a vote scheduled on the matter next week.
The August 28 meeting of Saskatoon City Council will discuss a report presented on Wednesday that outlines a funding strategy encompassing a mix of funding sources, including public and private contributions, grants and other funding tools that do not require an increase in the property tax rate to support the project.
The Downtown Event and Entertainment District scheme centres on the development of a new downtown 15,900-seat arena to replace SaskTel Centre, which opened in February 1988. Wednesday’s presentation outlined that this is expected to cost C$632m.
The wider project includes the renovation and expansion of the TCU Place convention centre (C$221m) and a C$52m upgrade for Sir Buckwold Theatre. Wider infrastructure costs for the scheme have been pegged at C$254m.
Saskatoon City Council revealed initial design concepts and launched a public consultation on the project back in August 2022. The City plans to fund between 27.5% to 33% of the project itself, through a 30-year debt repayment plan, with the remainder dependent on federal and provincial government investment.
When the project has advanced to a point that it is ‘shelf ready’ and all the funding elements are secured, it will proceed to detailed design and construction. However, the City has conceded it may take several years to secure required funding commitments from other orders of government.
Once the project is fully funded, it is expected to take 18 to 24 months before detailed design and key procurements are advanced enough to commence construction with a path to completion of five to six years.
The City has stressed that the proposed plan would come with no direct property tax increases for residents. “Council has the power to make whatever decision they determine, but I would say if the funding plan is seeing the revenues that it is expected to, that should be a non-issue,” said Dan Willems, Saskatoon’s director of technical services, transportation and construction, according to CBC.
The City believes it can fund its side of the project through seven funding mechanisms, which are expected to generate between C$602m and C$777m over a 33-year term. This includes private partner contributions that expect to bring a one-time C$20m cash injection, along with around C$150m over 25 years from revenue sharing.
OVG360 is being earmarked as the private partner for the project through a deal for operating rights to the scheme.
Share this