The City of Saskatoon is one step closer to making its downtown arena and entertainment district a reality.
On Wednesday, the city announced it has reached a tentative deal with OVG 360, a private partner, to help fund the project.
OVG360 is a facility management team with more than 300 client partners spanning arenas, stadiums and performing arts centres globally.
The city projects $170 million in net cash flow over a 25-year agreement.
“We’re coming forward with a plan as a way to fund our component of it with the holding increase to property taxes and then getting council’s approval on that plan,” said Dan Willems, the City of Saskatoon director of technical services.
“Then for administration to go away and finalize those details, like what exactly the rates are and all the different components for us, but also to start approaching the provincial and federal governments for their components. And that timeline is completely open.”
If city council approves the agreement framework, administration will continue negotiations with OVG to develop a master agreement in line with the framework.
The city has no projected timeline for the new arena and has not determined how much federal or provincial funding can be secured.
“Even if we had all the funding in place today, it would likely be five to six years of construction because of how we have to stage the construction,” Willems explained.
“We need to build a new parkade to replace the surface parking lot at the North Midtown lot before we can start building the arena. Then you need a year of design. So that’s probably two years before you can start construction of the arena, then 24 to 36 months for the arena.”
The framework for the Private Partner Agreement will be discussed at City Council’s GPC meeting on August 14th, with a subsequent report on how to fund the project anticipated to be in front of City Council at its meeting on August 28th.