Saskatoon city hall wants to slow down development of its billion dollar downtown arena project.
A forthcoming report set to be discussed at a city council committee meeting next week suggests postponing the ratification of an accord with the chosen private entity tasked with managing the newly constructed downtown arena and convention center—the pivotal element of the urban core rejuvenation initiative.
The report attributes the postponement of the downtown arena and entertainment district project to tariff retaliations, provincial procurement policies, and a federal election.
It’s challenging to plan long term under these circumstances, stated Dan Willems, the city's technical director. The municipality hasn’t obtained financing for constructing the arena yet and is relying on financial support from the national government.
Willems stated in an interview that completing this federal election and installing a new government will enable city councillors and the mayor to start those conversations with their political peers. This effort aims at advancing advocacy and potentially securing funds for the project.
Last year, the municipality selected Oak View Group (OVG), a United States-based firm specializing in managing entertainment venues, as its partner. a private entity to manage both the arena and the new convention center OVG will allocate $170 million for construction expenses as part of the proposed 25-year service agreement.
In December, both parties concluded negotiations with a preliminary "framework agreement," however, this pact has yet to be endorsed by the city council.
Weather there are any retaliatory tariffs or newly introduced duties that could affect this service contract and alter the financial aspects, numerous possibilities may arise," Willems stated. "However, we remain uncertain about what these changes might entail. Therefore, additional time is necessary for us.
Councillor Jasmin Parker, who represents Ward 6, oversees the downtown area. She stated that the postponement specifically pertains to the private collaboration with OVG and does not affect the whole downtown initiative.
"Given the present economic conditions characterized by fluctuating tariffs and their subsequent effect on procurement strategies, and considering our limited comprehension of how these elements might influence the city’s deal with OVG, administration suggests pausing this particular aspect of the process," stated Parker in the release.
According to the report, the city isn't subject to financial penalties due to delays in the agreement.
The governance and priorities committee convenes on April 9 at 9:30 a.m. CST at City Hall.
Downtown debate
Efforts to reintroduce an arena to Saskatoon's downtown have persisted for several decades.
In 1989, following the demolition of the Saskatoon Arena on East 19th Street downtown, the city constructed Sask Place—now known as the SaskTel Centre—in the northern part of Saskatoon to replace it. Ever since, discussions about having an arena in the downtown area have continued.
In 2016, the city adopted the initiative upon discovering that both TCU Place located downtown and SaskTel Centre were nearing the conclusion of their operational lifespan.
Since then, Saskatoon has slowly moved towards developing a new downtown district, establishing an advisory committee and purchasing land in the region.
Last winter, the city presented its design ideas for the area, featuring vibrant illustrations depicting a revamped 22nd Street, equipped with spots for temporary markets as well as an ice rink during colder months.
In 2018, a study requested by Saskatoon it was also proposed that the creation of the new district would generate considerable economic benefits. .