Sunday, September 17, 2006

SOEC Approved Penticton


Castanet
by Rachael Kimola - Story: 22209Sept. 16, 2006 / 9:01 pm

The results are in. With a vote of 80.3 %, Penticton residents have voted in favour of the South Okanagan Events Centre. Over 8,500 people voted in Saturday's referendum which asked two question regarding the SOEC. The first asked if voters approved of borrowing the money for the Events Centre and the second asked if they approved of a private company running the day to day operations. The second question was also approved with a yes vote of 54.9 %. Mayor Jake Kimberley says Penticton has made history with this decision. “No other city in the country has the opportunity to create a facility like this. The analogy to this whole thing is that we have taken out a mortgage from the province and in exchange we are going to get a top notch facility,” says Kimberley. MLA's Bill Barisoff and Rick Thorpe were also in attendance at the Penticton Trade and Convention Centre Saturday evening to hear the good news. “I think I was more nervous today then I was when I was running,” says Barisoff. As a result of the yes votes to both of the referendum questions, the City will continue negotiating a design/build agreement with Giffel's Partnership Solutions and an operating agreement with Global Spectrum. The City hopes to have both agreements finalized by the end of October.
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1. How much would it cost? • Building: $39.6 million (guaranteed price) on and off-site work, sports field relocation, contingency, etc.) • Other capital costs: $16.56 million (• Total capital cost: $56.16 million
2. Where will the money come from? • $40 million DAC revenue stream (over 13 years) • Funds will be used to pay back $39.2-million loan • $9.7 million provincial Major Regional Sports Facility grant • $7.2 million City Casino Legacy Fund and other reserve funds • Property tax increase of 2% (covers financing costs) • City reserves and borrowing capacity still well above policy levels
3. How much will it cost me? • Residential property tax increase of 2% to cover financing costs $9 annually for every $100,000 in assessed property value • Commercial property tax increase: $17 annually for every $100,000 in assessed property value (Above based on 2006 rates. Council may phase increase in over three years.)

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