A formal recommendation has been made on how the City of Medicine Hat should pay for the proposed new Regional Event Centre.
Aldermen now have until January 4th, 2010 to reach a decision if they are willing to sign off on it.
The number of funding options for this project, which is valued at $94.3 million, were presented to the city council.
These options include various combinations of borrowing externally, dipping into the gas depletion reserve, and pursuing private funding in a public private partnership arrangement.
The option that the Event Centre Steering Committee is recommending is that the city takes $30 million from the Community Capital Reserve, obtain $3 million in government grants, and take a $62 million internal loan from the gas depletion reserve.
Loan payments of $4.2 million will be made to the depletion reserve from the Community Capital Reserve, which is funded by the city’s Land and Properties Division and Energy Division.
The main reason we need Medicine Hat to reach a decision soon, is because the government is unlikely to give additional funding if they do not see any commitment made by Medicine Hat.
There is an alternative option by which the council would raise taxes, however if you want o pay the $4.2 million out of tax revenues, it would require a 9% increase in taxes.
The economy is not at a point where taxes can be raised almost 10% for anyone.
If the project receives the go ahead from the council, the Regional Event Centre could be open to the public as early as 2012.
Glen Chapman
Broker of Record with Club “100″ GMAC Real Estate
www.club100realestate.com
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