City seeks delay of downtown arena project to wait out tariff turbulence, federal election
Report recommends waiting 6 months to sign agreement with private arena operator
Saskatoon city hall wants to slow down development of its billion dollar downtown arena project.
A report going to a city council committee next week recommends delaying the approval of an agreement with the private partner selected to operate a new downtown arena and convention centre, the central piece of a revitalization plan for the city centre.
The report cites tariff tit-for-tats, provincial procurement policies and a federal election as reasons to delay the downtown arena and entertainment district project.
Long-term planning is difficult under those conditions, said Dan Willems, the city's technical director. The city has not secured funding to build the arena, but is counting on federal dollars.
"Getting this federal election done and a new government in place then allows our city councillors and mayor to begin those discussions with their political counterparts to try and advance that lobbying and hopefully secure funding for the project," Willems said in an interview.
Last year, the city chose Oak View Group (OVG), a U.S.-based entertainment facility management company, as its private partner to operate the arena and new convention centre. OVG is to provide $170 million for construction costs under the tentative 25-year service agreement.
The two sides finished negotiating an "agreement framework" in December, but the deal hasn't been approved by city council.
"Whether there's any counter tariffs or new tariffs that might impact this service agreement and change the dynamics of the financials, there's any number of things that could happen," Willems said. "But we just don't know what those might be. So we need some time."
Ward 6 Coun. Jasmin Parker represents the downtown core. In a statement, Parker emphasised that the delay is just about the private partnership with OVG, not the entire downtown project.
"In the current economic climate with the ever-changing tariffs and resulting procurement direction, and without fully understanding how these factors may impact the city's agreement with OVG, administration is recommending that we pause this singular piece of the process," Parker said in the statement.
The city won't face financial penalties for delaying the agreement, according to the report.
The governance and priorities committee meets April 9 at 9:30 a.m. CST at city hall.
Downtown debate
The push to bring an arena back to Saskatoon's downtown has been going on for decades.
In 1989, when the Saskatoon Arena on 19th Street E. downtown was demolished, the city built Sask Place — now called SaskTel Centre — in Saskatoon's north end to take its place. Since then, the downtown arena debate has persisted.
In 2016, the city took up the cause after learning that both TCU Place in the downtown and SaskTel Centre were "nearing the end of their useful life."
Since then, Saskatoon has inched toward a new downtown area, setting up an advisory committee and buying land in the area.
This past winter, the city unveiled its design concepts for the district, with colourful renderings showing a transformed 22nd Street, complete with space for pop-up markets and an ice rink in the winter.
In 2018, a report commissioned by Saskatoon also suggested that the new district would create significant economic spinoff.
With files from Kate McGillivray