Regional Council Presentations
Federal Government Commitment of $51.4 Million
On August 15, 2011, Defence Minister Peter MacKay announced a federal funding commitment of $51.4 million toward the proposed convention centre project for downtown Halifax.
Mayor Peter Kelly welcomed the decision by the federal government to become a partner in a new convention centre and the thrust it will give to the entire complex planned by a private developer.
Next Steps
Council’s support for the proposed project was subject to key terms with the Province of Nova Scotia including a commitment by the Government of Canada to provide funding for one third of the capital costs and that HRM and the Province would be equal partners in funding the balance. Final partnership arrangements are subject to Council approval. Staff will now bring forward a report for consideration.
Background
On December 13, 2010, Regional Council voted 18 to 5
in support of a motion to allow HRM and the province to present a unified voice to the Federal government for funding to make the proposed new convention centre a reality.
Under the agreement, it states that HRM and the province will each contribute about $56 million toward capital construction costs, and cost share equally on any operational costs not covered by revenue generated by convention centre operations.
Property taxes will be treated as a shared cost between the province and HRM, with the current property tax on the existing convention centre used to determine the taxes for the new one. Beginning in 2015-16, the amount payable will increase at the lesser of either the rate of inflation or two per cent annually.
An agreement is required from the federal government to contribute the remaining one-third of eligible construction costs, a lump-sum payment to the developer when the new centre is substantially complete.
Convention Centre Documents and Links
Timeline
| July 2005 |
Council approves partnering with the province and ACOA to study WTCC expansion and Metro Centre II. |
| October 2005-June 2006 |
WTCC Expansion and Metro Centre II Feasibility Study completed. |
| July 2006-March 2007 |
Feasibility Study examined. No action taken. |
| Spring 2008 |
Province/HRM issue call for Expressions of Interest – under HRM’s Procurement Policy - for 150,000 sq ft convention centre proposal. |
| Spring 2009 |
Province/HRM sign memorandum of understanding (MOU) to work together for a new convention centre “constructed in downtown Halifax and open for business no later than January 1, 2013.” Rank Inc. announced as preferred private sector supplier.
Province initiates due diligence process through Deloitte to produce “shadow” bid. |
| Fall 2009 |
Province invites Rank Inc. to submit detailed Stage II proposal for new centre. |
| Summer 2010 |
Rank submits proposal for the Stage II RFP to province.
Province sets up evaluation committee – which includes HRM, the Province, and Deloitte - to review proposal and Deloitte “shadow” bid.
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| Fall 2010 |
Province announces decision to proceed with financial support for proposed Convention Centre – seeking support from HRM and Federal government. Further negotiations with Rank Inc also still required.
Council receives staff presentation on proposed convention centre at October 19 Committee of the Whole meeting. On November 9, with an approved direction from Regional Council, HRM agrees to move forward to negotiate with the Province and Federal Governments toward the development of a new Convention Centre.
On Dec. 13, Council votes to accept agreement with Province,
allowing HRM and the Province to present a unified voice to the Federal government for funding. |
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