Funding deal for new arena isn't binding on the province

The Ontario Government can walk away any time it pleases from its commitment to provide $7.4 million in provincially-administered funds for the new multi-purpose facility that will replace Memorial Gardens.

Under a grossly one-sided agreement ratified Monday night by City Council, the province may renege on its obligations at any time, simply by giving seven days' notice.

"We could be left with a half-built building," says City Solicitor Lorie Bottos. "We will have to rely on the province exercising that discretion in good faith." Bottos expressed numerous other concerns about the deal being heavily slanted in the province's favour, but Council accepted Commissioner of Community Services Nick Apostle’s recommendation to sign the standard-form agreement anyway so the promised $7.4-million would start flowing to the City.

The $7.4 million includes $3.7 million from the province and an equal amount provided by Industry Canada, channeled to the City through Ontario's Sports Culture and Tourism Partnership's Initiative.

The budget contained in the agreement lists the gross cost of the new building at $23.15 million.

Other cautions from the City Solicitor:

- the City may not be able to accept the lowest bid tendered in some contracts because it may be bound to use union contractors

- City could be held liable for negligence of province

- clarification is needed on what proof the province requires to show that the City is in compliance with representations and warranties?

- City must guarantee it's in compliance with all federal, provincial and municipal rules, which is very difficult. City should be required only to do its best

- deadline dates should be reviewed to ensure they are realistic, since financial assistance ends when deadlines are not met

Project is still on schedule, says review committee

"Meanwhile, we are moving ahead with the plan on schedule," says Apostle.

"We plan to have the shovel in the ground by March or April of 2005."

The next step, Apostle says, is to look for public input about the proposed building.

The Arena Study Review Committee intend to present a review of the site and schematic design to City Council on October 18.

"We’re hoping it will be televised so people can have a first look at the plans and give us some feedback on it," Apostle told SooToday.com.

The committee is accepting comments and suggestions from Saultites through the City website, as well as by mail and through comment forms available at a display to be set up at Station Mall.

Parking, woe or no?

One issues faced by the committee is that of parking.

The new facility will have 600 more seats than the Memorial Gardens has now, so the committee must decide whether to find more places for parking in the existing lots or to male a re-zoning application.

Square Five is located in the same block as Memorial Gardens, and at Monday's council meeting, Ward 1 Councillor Steve Butland requested a report from city staff suggest solutions to possible parking problems there.

And parking woes at Square Five would be intensified by a greater seating capacity in the proposed multi-purpose event centre.

Councillor Butland referred to a survey of the Memorial Garden’s parking lot done one in August that found the lot was used to 19 percent of capacity.

Mayor Rowswell suggested the survey may not be a complete picture of the lot usage and supported Butland’s request for more information from city staff.

City wants province to fund project to maximum allowed

The provincial cash will be provided through Ontario's Sports, Culture and Tourism Partnerships Initiatives program, which can fund up to a maximum of 40 percent of an infrastructure project like the multi-purpose event centre.

However, the agreement ratified by the City on Monday calls for the province to providing just 34.6 percent.

So council decided to go back to the province to try to get the provincial contribution increased to the maximum of 40 per cent.

Ward 2 Councillor Terry Sheehan moved and Ward 1 Councillor James Caicco seconded a motion asking that funding from senior levels of government be equal to 40 percent of the eligible costs.

The motion passed with Ward 6 Councillor Frank Manzo objecting strongly to the whole idea of a new arena.

Under the current agreement, the funding formula for the $21.4-million project remains the same with $7.4 million coming from the province, $7 million coming from an assortment of so-called 'private sector' contributions and $7 million contributed by the City.

For background on the funding formula, click here or here.

"If they agree to increase the provincial share to the maximum the funding scenario will have to be re-visited,” Apostle said.