Aug 27 2006 http://www.pentictonwesternnews.com/portals-code/list.cgi?paper=102&cat=23&id=716336&more=
"Penticton, you have won the lottery." That is what Mayor Jake Kimberley told several hundred invited guests after local MLAs Bill Barisoff and Rick Thorpe announced $40 million in long-term casino funding over 13 years for the South Okanagan Event Centre Friday afternoon. The additional provincial money complements $9.7 million granted last year. Friday's funding announcement came little more than three weeks before a two-question referendum will ask citizens whether they endorse the project with a total estimated cost of $56.1 million. While the announcements included several appeals to vote yes in the referendum which is still necessary because of the borrowing involved, many predicted the referendum would now pass comfortably. "If I see a no-vote, I will be embarrassed for that person," said Kimberley. CUPE 608 president Carolae Donoghue, whose organization is part of the Coalition for an Affordable Public Events Centre, did not return a call seeking comment. The coalition is concerned about the cost of the facility and the city's plan to hire a private management company to operate the new facility as well as Memorial Arena and the Penticton Trade and Convention Centre. Kimberley said the additional funding will make the project more than affordable. Barisoff said the province recognized the project had to be affordable in announcing the amount that appeared to surprise crowd members. Thorpe said Friday's news was the "most exciting" announcement in which he participated. Thorpe predicted the project will generate opportunities throughout the region. "Yes, it will be housed in Penticton. But it is for the entire South Okanagan," he told the crowd which included officials from throughout the region. Local developer Randy Kowalchuk, who is planning to build a hotel near the SOEC with his partner Robin Agur, said Friday's announcement is welcomed by the local business community. "It gives business confidence," he said. Actual construction will pump about $30 million into the local economy, with regional spin-offs reaching $135 million. Kimberley said the project is already generating interest from the investment community, adding that additional monies generated from the project will mean money for future city services and projects. Kimberley made that promise after questions about the loss of casino money for other projects. Funds announced Friday come to the city after it applied for Development Assistance Compensation available only to communities hosting destination casinos. The city initially applied for $20 million, partly under the assumption that Lake City Casinos would interrupt the revenue stream for its projects. But this is no longer case, said Jack Kler, treasurer, who helped identify the revenue source along with city administrator Leo den Boer. The city will use the funding to pay off the total of $39.2 million it plans to borrow for the project, with $36.1 million subject to voter approval through the Sept. 16 referendum. The additional casino money, combined with the original provincial grant and the city's $7.2 million contribution, will fund all capital costs for the South Okanagan Event Centre. Local residential owners will see their taxes rise $9 per $100,000 of assessed value spread over three years, Kimberley said, adding that the city may reduce that amount in the final year because of additional tax revenues from the facility. A who's-who of Penticton business, political and social leadership attended Friday's announcement. But Kimberley, who defeated David Perry in last year's municipal election, in part by raising questions about the centre, singled out Perry for his contribution to the project. "It was his vision to make it happen," said Kimberley, as he thanked Perry. Perry for his part said he was pleased to see the province recognize the project that way. "I'll feel better if I see a shovel in the ground," he said, jokingly.Perry, however, also noted that the federal government, represented by Conservative MP Stockwell Day, has not yet come forward with funding. That is disappointing, he said. "But the province is making up that shortfall, in a huge way," he said. Thorpe said the lack of federal funding did not play a role in the province's decision to increase its contribution. Day said in an earlier interview that he is continuing his efforts to secure funding and questioned suggestions that he is not doing enough for the riding.
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