Council hoping to score grant
Taxpayers can’t be expected to foot the entire bill for construction of a new $33.9-million, twinrinks facility in Penticton, says the head of the Arena Task Force that came up with the proposal.
Stewart Ladyman told council Tuesday his group acknowledged that reality early on its work and struck a sub-committee to explore potential funding sources.
Some of the 13 options were tossed out early, he explained, including the concept of a publicprivate partnership, which he said is not viable on a project worth less than $50 million.
That left the committee with five options it deemed feasible and worthy of additional study: grants, donations, borrowing, naming rights and rental revenue.
Council on Tuesday voted to apply for a $6-million grant — the maximum available from a program funded by revenue from the federal gasoline tax.
Of the remaining options, Ladyman suggested there is a “high potential” to raise money through donations and naming rights.
As an example, he said, “There are companies in this country that go on your behalf — for a fee — and find philanthropists, and one of the tricks is to get the life insurance policy of somebody, have it willed to the city, and the city borrows against that.”
Ladyman also suggested the city “tap some of what I call our famous stars that have come from this community” to make donations and buy naming rights.
“You can name dressing rooms after people, you can have other naming rights not just on the outside of the building (but) within the building,” he said.
On the borrowing side, Ladyman noted the city could use some of the approximately $1.6 million it receives annually as its cut of the action from the local casino for debt repayment. Or, it could seek tenants for the new building and apply that revenue to debt repayment.
However, the prospect of going out to the community to ask for help funding a new arena prompted a pair of questions to council about what that might leave for the arts community, which is also seeking upgraded facilities.
Mayor Andrew Jakubeit replied that such groups should get moving to make sure their priorities don’t get lost in the shuffle.
“This fall is the next time we start talking about budget-related stuff,” he said.
“So if a particular organization or group wants to sort of have an opportunity, I think the next few months is the opportunity to lobby staff to get that on the radar or see where it sits on the radar to come back to us.”