SASKATOON — The Downtown Event and Entertainment District took a significant step on Wednesday, Aug. 28, when the City Council approved a report proposing a multi-million-dollar project funding strategy.
The proposed funding strategies will not require any increase in property taxes, as the project will rely on other sources, such as grants. The city will partner with OGV360, securing one-time funding of $20 million and $150M from revenue-sharing contributions in the next 25 years.
The proposed funding strategy includes accommodation and amusement taxes, parkade revenues, tax incremental financing, and property realized and SaskTel Centre reserve contributions.
Technical Services, Transportation, and Construction Director Dan Willems said the City Council's approval of the funding strategies they presented is not a decision to move forward with the construction but to get the project' shelf ready.'
"The Council's direction is to pursue financial opportunities to support the potential [DEED]. "It's also noteworthy that while this is approval of the overall strategy, the project still requires ongoing discussions with affected stakeholders and the other government orders," said Willems.
The administration will now go through the finer points of the funding strategy and continue working with stakeholders to create a fiscally responsible opportunity that will not impact property taxes.
Willems said the administration has a lot of work to do to make the DEED project a reality. Still, the City Council's approval is a milestone, and once operational, it will benefit the entire province, not only the City of Saskatoon.
"A modern event and entertainment district in the heart of Saskatchewan's largest city will be essential in maintaining and enhancing both Saskatoon and Saskatchewan's competitive advantage," said Willems.
He added that having a shelf-ready project means the city will be ready to proceed once federal and provincial funding programs become available, both contributions that will be necessary for the entertainment district project.
In an earlier briefing, Willems said the DEED is a bold vision for the City of Saskatoon as it will include multiple infrastructure projects reflecting the ideas shared by the various community sectors.
"As with other major projects, this doesn't happen overnight. Initial conversations around the [DEED] started in 2018 and will be several years before the construction. Public engagement was part of Phase 1, where we engaged with the community last year," said Willems.
"Community members shared what they would like to see in the District in April and May last year. We collected the feedback from the community and used it to inform the conceptual design and the plans, which are still upcoming."
He added that though the DEED looks ambitious for the city, Saskatoon has a track record of turning infrastructure projects into reality. During the past 10 years, more than $900 million, or $1.16 billion adjusted to inflation, has been spent on infrastructure projects.
The Saskatoon police headquarters on 25th Street and the Gordie Howe Bridge, which completed the Circle Drive loop, were among the multi-million-dollar infrastructure projects the city managed to accomplish. Both cost an estimated $552M adjusted to inflation today.
Premier Scott Moe and opposition leader Carla Beck of the Sask-NDP supported the planned entertainment district in downtown Saskatoon, saying the federal government also needs to be involved with the project.
Moe has not yet made funding commitments for the project but said, in an interview in Regina on Wednesday, that federal government dollars must be involved to turn Saskatoon's DEED vision into reality.
Beck also supports Saskatoon's entertainment district project, adding that they would want to know the final details through conversations with city officials. They assume the federal government will be one of the funding partners.
"You know, regarding the long-term cost and the benefit for the city and the province, you and I should always look at revitalizing our downtowns and ensuring those businesses thrive. And you'll hear more from us on that issue during the campaign," said Beck.
The administration will continue to collect progress reports to present to the council as work on the funding strategy progresses.
For more information on the DEED, including detailed information on the funding strategy, please visit鈥�
