Arena hinges on government money.

• Author: Ross, Ian
• Position: THUNDER BAY

The City of Thunder Bay will be chasing government money this winter toward funding a proposed arena and convention centre to house a professional hockey team.

The third phase of the feasibility study for the Thunder Bay Event and Convention Centre was approved by city council in late September. It gave staff the green light to pursue federal and provincial funding for the proposed $101.1-million venue.

Without it, the city's non-binding letter of intent with Thunder Bay Live--a project consortium of companies which will design, build and operate the venue for the city, and deliver a main tenant--will be dead in the water.

The deal expires at the end of March.

"If there's no money, this project won't go forward," said Michael Smith, the city's general manager of community services.

Plans call for a 5,730-seat arena with an adjacent convention centre of 43,877 square feet of space.

The consortium includes True North Sports and Entertainment, the owners of the Winnipeg Jets. The parent club wants its American Hockey League farm team--currently located in St. John's, NL--located closer to the Manitoba capitol to keep a better eye on its prospects. Thunder Bay is a one-hour flight away.

The timing of the arrival of government money is critical. All the parties involved are aiming for a September 2017 opening date of the venue to prepare for the 2017-18 hockey season.

The financing plan involves a three-way funding split between the city, provincial and federal governments. The city's contribution would be in the area of $30 million to $35 million, Smith said.

On top of the building price tag, $13 million more will be needed to relocate a hydro substation and bus terminal on the Port Arthur site selected, for venue parking and for a contingency fund.

"It's critical that we've got some funding from the feds and the province to help leverage this and move it forward," said Smith. "If that doesn't happen, we're going to have to take a step back and figure out what the next steps are.

No capital contribution is coming from True North, which is supplying the team.

The facility is projected to operate with an annual $1.2 million subsidy from the city...