Banking on the province forking over 100mil isn't it? I don't see them doing that because then Calgary wants the money and then who's to say projects for new things in places like Medicine Hat or Red Deer shouldn't be funded?
- DTF69
Here is a news story about the 100 million not yet allocated. I think this will put things into perspective for you.
EDMONTON - If you’re looking for that missing $100 million in provincial cash for Edmonton’s arena, Finance Minister Doug Horner has given the best clues so far.
There won’t be one big cheque but there might be a new source of provincial dollars open to all municipalities looking for assistance with major recreation and cultural facilities.
The Grande Prairie dinosaur museum, a new performing arts centre in Calgary and Edmonton’s downtown hockey arena are all projects that came forward in the last few months as many municipalities, including four in his riding, raised the need for assistance, said Horner.
“It became pretty clear to myself and (Municipal Affairs Minister) Doug Griffith and the premier that municipalities also want help with major cultural and recreational facilities,” Horner told the Journal this week.
“It would be fair to say it is something all municipalities would have access to it ... and it might involve gaming revenue.”
It would be up to each municipality to decide where to put its share of money, thereby allowing the provincial government live up to its promise not to provide “direct funding” to the arena built for the Oilers.
Horner also told the legislature in December that the government is looking at a program open to all municipalities.
Previously, there was much speculation the province would provide the funding though the 10-year Municipal Sustainability Initiative that funds infrastructure such as roads and sewers — an option raised in Ed Stelmach’s administration.
Jim Taylor, executive director of the Downtown Business Association, thinks that’s still the most likely scenario.
“I’m convinced, just like the mayor is, that this will come through a municipal sustainable infrastructure funding formula that’s coming out for all municipalities with the budget this year,” said Taylor.
“I think that all of council knows that that’s where the $100 million is coming from.”
Now there’s speculation about a new program or a new funding envelope possibly within MSI devoted to culture and recreation facilities, because there seems to be a gap in funding for larger projects.
When it comes to recreation facilities, the province only provides small grants under the Community Facilities Enhancement program to build neighbourhood playgrounds out of lottery funds. There is no dedicated funding for large municipal recreation or cultural projects.
Coun. Bryan Anderson said Edmonton has already committed all its MSI funding. The city has received $734 million so far under the projects and all the funding through to 2017 is allocated.
So unless the province is prepared to increase the MSI money by about $10 million a year to cover the $100 million, that source of funding is off-limits to the arena, he said.
“No one on council is interested in using MSI money because it would be robbing infrastructure already underway. We can’t start trading off the arena against other infrastructure.”
Coun. Ben Henderson agreed.
“If it means we have to take money away from another project, that changes the rules a bit,” said Henderson, noting that council promised not to use the existing property tax base to fund the arena. “
“It would be a very hard call and we’d be jeopardizing other projects. It’s not — do you fix potholes or do an arena. You have to do both.”
Horner declined to comment on whether MSI funding will be increased when he presents the provincial budget March 7. Given the concern over the looming deficit, it’s hard to see where new funding will come from.
Council does not needs to have the provincial cash in hand this year but it needs to see some signal soon, possibly before the end of March, of a provincial commitment.
That’s when council will debate the capital budget for the arena, said Lorna Rosen, the city’s chief financial officer.
Despite the serious financial pressures facing the province with falling oil prices, there’s a strong case to be made for provincial contribution to these large projects that benefit the region and the north, said Henderson.
He said there’s an argument the federal government should be at the table — though that’s complicated because it turned down support for a Quebec City arena.
Still, Anderson noted, the federal government put $14.8 million in stimulus funds into the GO Centre on the University of Alberta south camps (now called the Saville Community Sports Centre). The city put in $9 million and the province $10 million.
There’s also rumbling the province could provide interest free loans from the Alberta Capital Finance Authority, the provincial agency that loans money to municipalities at low interest rates.
Earlier this month, Wildrose Leader Danielle Smith proposed an expanded keno lottery program to raise money for the $100 million gap, then suggested the lottery could be made available for facilities across the province.
