Developer wants $8.5M from city for exhibit hall
By JON WILLING, CITY HALL BUREAU
Last Updated: June 1, 2010 3:33pm
http://www.ottawasun.com/news/ottawa/2010/06/01/14214566.html
An artist's impression of the proposed trade show space at the Ottawa airport.
The company that wants to build a trade show facility near the Ottawa airport needs $8.5 million in city cash to get the project off the ground.
Shenkman Corp.’s proposal to build the $39.2-million exhibition hall was the only bid the city received.
But if council accepts the proposal Shenkman will asking the city for an $8.5-million contribution to help it raise the remaining cash.
The only way the city can come up with the money is by borrowing it.
In a committee report tabled Tuesday, city staff say an evaluation team gave the Shenkman proposal a high score. A fairness commissioner hired by the city also signed off on the process.
The corporate services and economic development committee referred the report and the recommendations to a council meeting June 17.
Staff are recommending council accept the Shenkman bid and authorize city manager Kent Kirkpatrick to negotiate an agreement with the company.
The city has been looking at ways to transfer the trade show space from Lansdowne Park, which could soon be under redevelopment.
Shenkman has an agreement to lease a 28-acre piece of land on Ottawa airport property for an exhibition centre, parking and a hotel. The lease would run from September 2010 to January 2057.
The Shenkman plan calls for a 218,000-sq.-ft. exhibition hall and more than 2,000 parking spots. The exhibition hall could be subdivided into four smaller halls. The hotel would likely have 90 suites.
According to Shenkman’s proposed project schedule, the company would have the facility open at the beginning of 2012.
Although the tender document was downloaded by 39 companies, only three went on to have meetings with city staff.
Only Shenkman submitted a proposal.
A study recently done by the city indicates an exhibition facility would translate into $12-million in annual economic benefits to Ottawa. There would also be 237 new jobs created to build the facility.
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