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Arena hinges on government money

The City of Thunder Bay will be chasing government money this winter toward funding a proposed arena and convention centre to house a professional hockey team.
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The City of Thunder Bay is on the hunt for the provincial and federal governments to fund two-third of a proposed arena and convention hall. The venue will house the farm team of the Winnipeg Jets.

The City of Thunder Bay will be chasing government money this winter toward funding a proposed arena and convention centre to house a professional hockey team.
The third phase of the feasibility study for the Thunder Bay Event and Convention Centre was approved by city council in late September. It gave staff the green light to pursue federal and provincial funding for the proposed $101.1-million venue.

Without it, the city’s non-binding letter of intent with Thunder Bay Live, a project consortium of companies which will design, build and operate the venue for the city, and deliver a main tenant, will be dead in the water.

The deal expires at the end of March.

“If there’s no money, this project won’t go forward,” said Michael Smith, the city’s general manager of community services.

Plans call for a 5,730-seat arena with an adjacent convention centre of 43,877 square feet of space.

The consortium includes True North Sports and Entertainment, the owners of the Winnipeg Jets. The parent club wants its American Hockey League farm team – currently located in St. John’s, NL – located closer to the Manitoba capitol to keep a better eye on its prospects. Thunder Bay is a one-hour flight away.

The timing of the arrival of government money is critical. All the parties involved are aiming for a September 2017 opening date of the venue to prepare for the 2017-18 hockey season.

The financing plan involves a three-way funding split between the city, provincial and federal governments. The city’s contribution would be in the area of $30 million to $35 million, Smith said.

On top of the building price tag, $13 million more will be needed to relocate a hydro substation and bus terminal on the Port Arthur site selected, for venue parking and for a contingency fund.

“It’s critical that we’ve got some funding from the feds and the province to help leverage this and move it forward,” said Smith. “If that doesn’t happen, we’re going to have to take a step back and figure out what the next steps are.”

No capital contribution is coming from True North, which is supplying the team.

The facility is projected to operate with an annual $1.2 million subsidy from the city. Additional private money could arrive through arena naming rights, advertising and sponsorships.

In early November, city staff were preparing applications were being prepared to be submitted to the Northern Ontario Heritage Fund, FedNor and the Building Canada Fund. With two provincial cabinet ministers serving Thunder Bay, there’ll be considerable lobbying effort on the city’s part.

Where Ottawa stands is uncertain, but the city is putting its best foot forward, said Smith.

“The federal government’s been very clear that funding a pro team is something that they have no appetite for. We’re cognizant of that, but we’re still of the view that we’re putting our applications forward and see where the funding comes out.”

City officials expect to wait about six months to get any indication if government support is forthcoming. Smith said they’ll know by spring if they need to start mobilizing equipment through the project contractors, PCL.

“We need to be starting the construction in June,” said Smith, to meet the 2017 opening date.

A St. John’s media report suggested if the arena wasn’t ready in time, True North might park its farm team in Winnipeg while it searches for other locations in the U.S. Midwest.

Smith wouldn’t speak to the limited window of opportunity, as negotiations continue on finalizing a design-build contract, “but we get a pretty clear sign from the consortium and True North Sports that they really want to be here.”

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