Saskatoon business reps are in favour of $1.22B arena project

Saskatoon’s business representatives are advocating for the development of the Downtown Event and Entertainment District, asserting the project will spur significant economic growth.

On Wednesday, the City of Saskatoon unveiled the total price tag project of $1.22 billion in 2024 prices, with the city’s portion costing just over $400 million.

Keith Moen, Executive Director of the North Saskatoon Business Association, said he’s not surprised about that figure and the organization supports the project.

“We know that something like this is going to cost a significant amount of money because it is a significant investment the city would be making,” he said.

He gave credit to the city for what he called “ingenious” ways of pursuing different avenue models to fund the project.

The city’s strategy will rely on unsecured funds from seven revenue streams such as amusement taxes, parkade revenues and accommodation funding contributions to pay off the project over 30 years.

Overall, Moen believes a new downtown event district would be a worthwhile investment “without question,” as it would attract further investment and appeal to developers interested in the area.

Tax incremental funding is one revenue the city would use to pay off the project, as the city’s Chief Financial Officer Clae Hack explains businesses like new hotels would likely build next to an arena, with those property taxes helping to repay the project.

“It’s not just about creating new facilities, it’s about creating a vibrant, attractive downtown core that attracts businesses, residents and visitors alike,” Moen said.

Moen also acknowledged the inflationary risks associated with a project of such magnitude.

“What you could build for a billion dollars five years ago is not what you could build for a billion dollars today,” he said.

Moen said not completing the project is another risk with SaskTel Centre in “dire need” of renovations. He explained this would necessitate closing the facility for two years with a cost of around $300 million—a burden that would ultimately fall on taxpayers.

Margot Orr-Stevenson, Director of Issues and Government Relations for the Saskatoon Chamber of Commerce echoed that statement.

“There is an option to do nothing, but in that option, we miss out on a lot of economic activity,” she said.

Last year an independent study released by the chamber and business improvement district suggested that a new arena and event district could bring a $1.37 billion boost to the city’s economy over the next decade.

Even with the current price tag of $1.22 billion for the project, Orr-Stevenson says a new arena and event center is crucial for the city, and would create numerous opportunities for both direct and indirect jobs.

Additionally, she believes that attracting visitors and residents, along with new businesses opening downtown would lead to tax savings, and provide immediate economic benefit to nearby businesses.

The City of Saskatoon will also be turning to the federal and provincial governments to fund the rest of the project.

The city’s funding strategy is subject to a council vote next week.