Saskatoon councillor seeks financial clarity on downtown entertainment district funding

Saskatoon city council is set to examine the financial details of the proposed Downtown Event and Entertainment District (DEED) following provincial endorsement of the project. Councillor Robert Pearce is pushing for a clear plan to fund the city's portion of the $1.2 billion development, emphasizing the need to uphold the promise that ratepayers will not bear the cost.

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The question is, how do we responsibly get there, make sure it’s measured and appropriate, and keep our promise that the ratepayers aren’t going to pay for it.

Pearce wants a concrete strategy that outlines how the city's share will be raised without increasing property taxes. Mayor Cynthia Block assured that any changes to the funding strategy that would impact property taxes would require full public discussion and council approval, which she does not anticipate.

The city has identified several potential revenue streams, including a three-way sharing agreement, targeted levies, amusement and accommodation taxes, tax increment financing (TIF), and revenues from parkade operations. These options are being considered to finance the city's contribution to the project.

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If that were ever to change, that would come back to council and there would be a full public discussion at that time. And I am not anticipating that for a number of reasons.

Furthermore, a recent memorandum of understanding with the Muskeg Lake Cree Nation could lead to a partnership, potentially de-risking the project and altering the financial metrics. While the outcome of negotiations with the First Nation remains uncertain, the provincial government has committed to matching federal funding up to one-third of eligible project costs. The federal government has yet to make a funding commitment. The council is expected to discuss Pearce's call for financial clarity next month.

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That could change the metrics as well and make it a much better opportunity to de-risk the project.