The future of the Kingsway Entertainment District appears in trouble, with Mayor Brian Bigger, who has supported the project in the past, indicating his intention to vote against it next week.
“I cannot support staff's recommendation to accept a cost of $215 million for a new event centre, knowing that the St. Catharines Meridian Centre was constructed in 2014 for $54.7 million,” he said in a media release issued today.
“I also cannot support staff's recommendation to take on an additional $115 million of debt for this project. Particularly, with staff's latest estimate that the interest rate on new long-term debt would be five per cent or more.”
City council is expected to vote on the future of the KED during Tuesday’s city council meeting, which is scheduled to begin at 2 p.m.
The debt servicing would increase municipal taxes by an additional two per cent during its 30-year shelf life, according to Bigger’s letter.
“Council has just recently given city staff direction to present a 2023 draft budget representing a 3.7-per-cent increase (roughly half the current rate of inflation) and I remain committed to council's recent direction,” he said.
“I do remain committed to the Junction East project and I am very optimistic that significant funding dollars will be obtained from upper levels of government for that project.”
Bigger added that he intends to ask council to defer any further debt-financed projects at this time, and for staff to provide council with an update on summary of all projects approved by city council where staff anticipate financing via new debt.
The city’s current debt load is approximately $355 million, of which $90 million has been earmarked for the KED.
Tuesday’s city council meeting will begin at 2 p.m., at which time members of the public can witness proceedings in-person at Tom Davies Square or view a livestream by clicking here.
