Council's backroom boys push to fast-track arena

City Council appears poised to give up on the idea of private-sector financing for the new municipal arena.

In a news release issued jointly yesterday by Mayor John Rowswell and Ward 1 Councillor James Caicco, the two argue that the arena project should proceed instead with taxpayers paying the full cost through equal contributions from the City, provincial and federal governments.

Caicco heads the Arena Study Review Committee, which he says recently decided to ask City Council to change the arena funding formula to seek more public money from higher levels of government.

The powerful all-male committee, including Councillors Steve Butland, James Caicco, Bryan Hayes, Terry Sheehan, Lou Turco and the Mayor, functions as a secretive cabal of Council. SooToday.com has for many months lobbied for public access to the committee's meetings but has never been able to learn in advance when and where they take place.

Although Council has yet to publicly debate the new funding arrangement, yesterday's news release gives the impression that the issue has been pre-decided.

"Not only is City Council willing," the release states, "but all the pieces are in place and the project could begin immediately should the funding be approved."

The following is from yesterday's news release, issued jointly by Rowswell and Caicco:

******************************* City Council committed to new arena project

(Sault Ste. Marie, ON) - The Arena Study Review Committee will be requesting authorization to terminate the current Financing [Request for Proposals] process for a new arena and amend the Superbuild application for a new arena at the next City Council Meeting.

The amendment to the application will include a financing request whereby the three levels of government would invest an equal share in the project.

Based on the recent outcome of the [Request for Quotation] for private sector financing, the Committee decided to amend the application rather than pursue options for the City to fund two thirds of the project itself - a route that both the Committee and the City's Commissioner of Finance and Treasurer cautioned against.

"Although we have partners who are willing to provide financing for the amount required, the arrangement would mean that we would end up paying more than if we borrowed money for ourselves," notes Mayor John Rowswell.

"We couldn't recommend those arrangements on behalf of taxpayers. What I do know is that our City Council is committed to building a new arena, but we need more help from senior levels of government."

Mayor Rowswell is eagerly awaiting next week's announcement by the Federal Government.

"I hope the announcement will set out a new deal for funding infrastructure that could assist in moving the new arena project forward." says Mayor Rowswell.

Councillor Jamie Caicco, who is Chair of the Arena Study Review Committee, concurs.

"Not only is City Council willing, but we are ready and able. We have had preliminary meetings with Mr. Provenzano and Mr. Orazietti, who were both receptive and recognized this project as a top priority for this community."

Caicco notes that all the pieces are in place and the project could begin immediately should the funding be approved.

"The work we have done has been successful and we hope the two levels of government understand that much work has been done up to this point. We have been very diligent in meeting their requirements for a private sector one-third partner," says Caicco.

"There has been extensive work done in conjunction with the IBI group to secure a private sector partner, however this expectation is not possible for a new arena under the guidelines set forth."

"One of the Committee's recent successes is the securing O&Y/SMG. as an operator for the new arena project.

"We are excited to have them on-board and feel that their presence will strengthen the amended application.

This operator is a highly successful firm which operates over 70 facilities throughout North America," says Caicco.

The Mayor definitely agrees. "They ensure that that the proposed multi-use arena and possible tradeshow complex has an experienced operator providing for maximum community use and as well as bringing vibrancy to our downtown," say Mayor Rowswell.

The Committee will bring its report to the next City Council Meeting is on Monday, March 22, 2004 at 5:30 PM.

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