Quote:
Originally Posted by C_Boy
From the City's website. . .
Public Private Partnership (PPP) Canada rejects Moncton’s Downtown Centre funding request
December 8, 2011
MONCTON – Despite a lengthy and demanding application process to fulfill Public Private Partnership (PPP) Canada’s requirements, the federal Crown Corporation has rejected the City of Moncton’s funding request for a new downtown multi-purpose sports and entertainment centre. Since June 2010, the City has been working with PPP Canada to complete their application process. Throughout this timeframe, the City has met all of PPP Canada’s extensive information requirements, eligibility criteria and deadlines. All told, the City has spent approximately $100,000 to date on its application and devoted more than 3000 hours of senior staff and Council time to the process.
“We must re-focus and look for opportunities to engage more fully the private sector and the Provincial government in this project. Clearly now, to make this project viable, we’re going to need more private sector and NB government support,” noted the Mayor. “We are very close to finalizing an option agreement associated with acquiring Council’s preferred site. We will be presenting the citizens of Moncton with a conceptual rendering of the proposed Downtown Centre and a detailed accounting of the project as soon as that option agreement is in place.”
“I know this is a significant setback, but we will rise to the challenge like we have on many other occasions,” he said. “We are not giving up—this project is far too important. Together with our stakeholders and community, we will find a made-in-Moncton solution.”
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This is terrible news. Despite the brave face the mayor is placing on this, it's hard to imagine this project moving forward without a federal contribution, $25M would be hard to replace from either provincial or private sources.
This is false economy on the part of the feds. It is easy to just say "no" and point to this as evidence of fiscal responsibility and prudence on the part of those who control the public purse. In reality, some projects such as this one would be significant catalysts to economic growth which would cause improved tax revenues down the road. This should be considered an investment in the future! Instead, we risk stagnation and poor growth potential, leading to decreased tax revenue and increased costs due to higher unemployment and social welfare costs. Not all public spending is bad!!!
Despite the bleak outlook, the city should still press ahead with optioning their preferred site for the events centre and should release their conceptual drawings. They might still be able to shame the feds into doing
something for us.
I do believe that Premier Alward is supportive of this project and I think he will provide significant financial support
but with the current near insolvency of the province, he can't just replace the federal contribution.
As far as private partners are concerned, this would depend on what the centre might be used for. Private partners of course are interested in making profit (or at least not losing money). Robert Irving might be a significant partner, especially given his interest in the Wildcats and companies like Molson/Coors could be involved in paying for naming rights. Again, it will be difficult to make up for the loss of federal funding.
This is extremely bad news indeed!!