City hall needs 'refresh' on downtown Saskatoon arena district funding

Saskatoon city hall administration is planning to "refresh" the funding strategy for the proposed $1.2-billion downtown arena district amid a lack of commitments from higher levels of government.

The funding plan from city hall calls for one third of the massive project's cost to be covered by the federal government and one third by the provincial government. The rest of the cost would be paid for through revenues and taxes raised by the project.

A report that will be considered by city council Wednesday says no federal programs exist that could provide money to build the district, which would include a new downtown arena and an expanded and updated TCU Place convention centre.

"To support informed decision making and advance discussions with funding partners, the administration intends to proceed with refreshing the project’s funding strategy to reflect current conditions," the report says. 

Eight years after council approved a new downtown arena instead of investing in upgrades to 38-year-old SaskTel Centre, located on the city's periphery, the project appears to be no closer to proceeding.

City council asked for a funding strategy that would not involve a direct increase in property taxes, even though the city has purchased downtown land for the project from reserve funds that are replenished by city revenue.

City officials continue to focus on the message that the district is aimed at achieving economic goals that extend beyond city limits, the report adds.

"Building on this foundation, ongoing efforts continue to focus on encouraging provincial and federal partners to consider participation in the project’s funding," the report says. "The absence of any eligible federal funding program(s) means continued advocacy is needed to bring the project to life."

The city administration plans to update the plan "to confirm funding feasibility" and report back later this year, according to the report.

City council will also consider whether to enter into a partnership with a private company to operate the proposed Downtown Event and Entertainment District.

Council deferred a decision in October on moving forward with a deal with OVG360, a giant in the North American sports and entertainment business that operates hundreds of facilities.

The administration is recommending council approve the deal and has included more details about revenue projections for city politicians to consider.

Over the potentially 30-year agreement with OVG360, the city estimates total revenue generated by the arena and convention centre facilities at $411 million, with $176 million going to OVG360 in management fees and commissions and the city receiving $235 million.

Under the plan, OVG360 would pay $15 million toward the construction of the district.