Coming up next Wednesday at City Council, Administration has a funding strategy to present for the Downtown Event and Entertainment District, with the goal of ensuring there would be no property tax increase if the project were to become a reality. Director of Technical Services, Transportation and Construction, Dan Willems, says federal and provincial funding would have to be in the mix as well as a private partner, which if approved at the same Council meeting, would be the international arena management company, OVG360.
Other possible funding sources include a tax on tickets, a tax for hotel stays, parkade revenues, money from the City’s Property Realized Reserve and from the SaskTel Centre Reserve. Chief Financial Officer Clae Hack can’t say how hotel owners would feel about a hotel tax, saying, “You know, I certainly think Administration’s context is they are very supportive of the project and the economic benefit it would bring to the city. There are still some conversations to be had on what exactly the accommodation tax looks like, and how it implemented and their rate and all those pieces.”
Another funding source is Tax Incremental Financing. Willems describes this as new builds in the downtown area which would have their taxes directed toward the project instead of into the general fund until the project is paid for. He stresses it may take several years to secure required funding commitments and no final decision on whether to move ahead will be made until they are in place. He states, “There is no question this project will have broad provincial benefit far greater than just the Saskatoon area. Having a modern entertainment and events centre, and convention centre, in the heart of Saskatchewan’s largest city will be essential in maintaining and enhancing both Saskatoon and Saskatchewan’s competitive advantage.”
The report to Council says doing nothing is not an option because the City then risks being excluded from major events and tourism becoming stagnant. Renovating an aging SaskTel Centre would cost in excess of $300 million, and while it was happening, it would be closed for at least two years, meaning a loss of business coming in and renovation doesn’t contribute to a revitalized downtown.
The total cost estimate is $1.22 billion, which includes a new arena and event centre, an expanded and renovated convention centre, renovated theatre, new parkade, public plazas, park space, and utility upgrades. Willems says of that, the City would fund somewhere between 27.5 to 33 per cent, which is what is usually required under projects that include federal and provincial funding. Right now, there is no federal funding program which includes arenas, so for this project to happen, that would have to be in place.
