Thunder Bay event centre financing draws councillors' questions

Thunder Bay city staff receiveda barrage of questions from city councillors on the proposed event centre during Monday night's council meeting.

The meeting is one part of the process for councillors to decide whether or not to move to the project's design and build stage.

Many queries revolved around the centre's financing specifically the city's planned re-allocation of federal gas tax money.

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Coun. Linda Rydholm wanted to know how the projected $21.1 million would pay for upfront costswhen the city receives the funds over 10 years.

"I'm not being facetious here," Rydholm said during the meeting. "I would expect contractors don't want to wait for eight or nine years for some of them to be paid, sohow will the financing work?"

The city is asking for a total of $23 million from the federal government, which includes $21.1 million from the gas tax fund, and $1.9 million to relocate the downtown bus terminal.

The federal funds will flow to Thunder Bay no matter what, although what'sunclear is whether the city is able to divert that money towards the event centre.

'We need to have a plan B,' mayor says

Coun. Rebecca Johnson asked what impact that fund diversion would have on areas where the money has historically gone areas such as sanitary sewers, water and transit.Last week, city staff said there are long-term plans in place that will make those services sustainable on rates and other government funds, instead of the gas tax money.

At the meeting, Johnson said she wanted specifics.

Thunder Bay Mayor Keith Hobbs also asked about contingencies in case the provincial and federal governments don't come through with funding.

"I'd like to see something on how it would look for revisiting this plan timelines, what it would mean in extra costs if that's possible. Because we need to have a plan B," he said.

Staff said at the meeting they won't hear back from the federal government on whether the city qualifies for the funds by then end of March. City manager TimCommissosaid even hearing back in April isn't a guarantee, although he's hopeful.

City staff also said they will work to get the information to respond to council's questions.

"Some of it is already in the works .... we're confident we can get all the information back," said Commisso.

City staff and councillors will regroup at a special meeting on Thursday, where it is expected that many of these questions will be answered. Councilwill alsohear from the public, debate and then vote on whether to move to the project's next stage.