After months of waiting, Moncton has a financial commitment from the New Brunswick government for a downtown multipurpose arena.
During a press conference Thursday, provincial Health Minister Victor Boudreau, who is also the minister responsible for the Regional Development Corporation, announced that support would come in the form of a $21-million forgivable loan.
“Our government’s commitment to this strategic recreational infrastructure project will yield a significant return on investment by spurring economic activity and creating jobs in Greater Moncton,” said Boudreau.
The government says the arena project is expected to create 700 jobs during the three-year construction and 49 long-term positions.
Additionally, they say they anticipate construction to generate $9.8 million in provincial income tax, with an ongoing contribution of $192,000.
“The economic activity generated by this announcement will benefit the Moncton region and the entire province for many years to come,” said Social Development Minister Cathy Rogers.
“We have taken the time to carry out our due diligence and ensure that this investment will generate growth in our city and provide a valuable recreational site for families.”
But the project has further hurdles to pass.
The total cost for the facility could exceed $100 million. The federal government has made a commitment to supporting the project with up to $23.5 million in infrastructure funding that Moncton could re-route to the arena. That still leaves the city with a long way to go.
And the provincial loan is conditional on the project following government guidelines for recreational infrastructure. Applicants seeking funding must submit a business plan, demonstrate that the project is sustainable without continued government assistance, provide success indicators and measurable economic benefit, and leverage funding or investments from federal, local, or private sources.
And even if the city can raise the money, not everyone is convinced that this is the best use of New Brunswick tax dollars.
“When the province is busy firing teachers, we can’t afford money for new stadiums,” said provincial NDP leader Dominic Cardy.
There’s also opposition from within city hall. Moncton Coun. Brian Hicks believes that across North America such projects are proving to be “white elephants.”
“I think there are far better ways to spend taxpayer’s money than this,” said Hicks.
The City of Moncton can also convert $14 million of the forgivable loan to provincial grants, providing the city secures matching funds from other public and private-sector partners.
Boudreau says he hopes today’s announcement will help Moncton secure additional investments in the facility.
“Our government wants to see this project become a reality,” he said.
“At the same time, we are ensuring that taxpayer dollars and the province’s finances are protected by making the loan conditional on other funding partners being secured.”
Moncton Mayor George LeBlanc says he expects the project to begin early 2016.
With files from CTV Atlantic's Jonathan MacInnis
