By Penticton Herald StaffThursday, February 22, 2007
Five months after the announcement of $40 million in casino funding for the South Okanagan Event Centre, a formal agreement ratifying the deal was endorsed by Penticton council this week.Jack Kler, the city's director of corporate services, explained the Destination Assistance Compensation (DAC) funding represents 23 per cent of net revenue from the Lake City Casino at the Penticton Lakeside Resort over the next 13 years. The agreement includes an initial payment of $2.1 million with the remainder earmarked for annual payments on the city's maximum $36-million debt on the event centre.The DAC agreement had to wait until after a construction contract for the event centre was signed.Mayor Jake Kimberley lauded Kler's efforts in obtaining the casino funds. "Without this agreement, this project would not happen -- we would not be looking at building this facility,” he said. “This is just like buying a house and having somebody else pay the mortgage."Penticton has one of only three officially designated destination casinos in the province.
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