Centre's chances rest with lottery funds

By Wolf DepnerStaff ReporterAug 23 2006 http://www.pentictonwesternnews.com/portals-code/list.cgi?paper=102&cat=23&id=713627&more=
A key piece in the funding puzzle for the South Okanagan Event Centre is still missing as next month's referendum approaches. City administrator Leo den Boer confirmed council and staff met with local MLAs Bill Barisoff and Rick Thorpe to discuss the city’s request for Development Assistance Compensation funding through the B.C. Lottery Corporation. The city is counting on that funding — up to $20 million over 13 years — to help finance the facility now awaiting public input through a two-part referendum Sept. 16. Mayor Jake Kimberley said last month the city would have to cancel the referendum (and by implication the centre) if it cannot secure that funding for the project, which carries a total estimated cost of $56.1 million. While den Boer said he could not release details about the confidential luncheon meeting with the MLAs to discuss the DAC funding and other areas of mutual interest, he hinted the province may grant the request soon. Any announcement in the near future would certainly be opportune timing for the city heading into the referendum, as the facility has met opposition from a group calling itself Coalition for an Affordable Public Events Centre. The coalition opposes primarily what it calls a public-private partnership to run the new facility, Memorial Arena and the Penticton Trade and Convention Centre.
The group — like several letters to the editor published in local media — has also raised questions about the centre’s cost and unforeseen expenses. Den Boer said he could not predict what impact any announcement on DAC funding would have on the referendum. “I don’t have a crystal ball,” he said. “There will be a positive announcement soon — I hope.” B.C. Lottery Corporation officials headed by Solicitor General John Les are said to be supporting the city’s application.
But they have not yet issued a formal endorsement despite lobbying efforts from the city that included a trip by city staff to Victoria last month. Treasurer Jack Kler said in June that the city was close to securing that funding because it matches provincial requirements to receive that kind of support. Also still uncertain is whether the federal government will contribute to the project.
Depending on which of the four financing scenarios eventually materializes, local taxpayers could see their taxes rise between 0.3 and 4.2 per cent annually for the next three years based on the 2006 tax year.