Home
 
Choose Your City
Change City

Funding deal a ‘unified pitch’: Kelly

The funding arrangement for the proposed convention centre represents a “unified pitch” from the province and HRM, according to Mayor Peter Kelly.

The funding arrangement for the proposed convention centre represents a “unified pitch” from the province and HRM, according to Mayor Peter Kelly.

Under the arrangement, both the province and municipality would contribute $56 million toward construction costs, with any capital cost overruns being absorbed by developer Joe Ramia.

Property taxes would be treated as a shared cost between the two governments, using the current facility’s assessment ($1.1 million) to determine the proposed one’s value.

The lease on the convention centre portion of Ramia’s $500-million complex will be for 25 years, with an option for two five-year extensions, an option to negotiate its purchase in 22 years, as well as an option to buy it for $1 in 30.

The province and the municipality will be equal partners in the facility’s operations, and be jointly responsible to top up any operational deficits.

Mayor Peter Kelly assured reporters yesterday that Trade Centre Ltd.’s new board, with 50 per cent representation from HRM and 50 per cent from the province, will keep a close eye on operations.

The province will attempt to sell the current trade centre facility at book value ($12.8 million). If the facility isn’t sold when the new centre opens in 2014, the municipality will purchase the building.

 
 
Consider AlsoFurther Articles