Update, Thursday 8am: The Chronicle-Herald is reporting that Saturday’s deadline has been extended for three months: http://bit.ly/hQ9JFq
Developer Joe Ramia says that this Saturday, January 15, is the deadline for the three levels of government to agree to finance the convention centre he proposes to build in downtown Halifax. Weeks ago, Halifax city council and the provincial government had agreed to finance their respective portions of the project, but as of press time Wednesday, the federal government has not responded to a request for $46 million.
Ramia says the entire project, which includes the convention centre, a hotel and an office tower, will cost $550 million. The governments will pay for just the convention centre portion of it, pegged at $159 million, although clearly the publicly funded convention centre serves as a subsidy for the private portions of the project.
Under the terms of Ramia’s agreement with the province, the federal government will pay the $46 million up front, with the remaining $113 million split evenly between the city and province and financed by Ramia at six percent interest. Additionally, the agreement calls for the provincial and city governments to pay various annual operating and maintenance costs, bringing total government expenditures to about $325 million. Ramia says his costs are dictated by his contractors and an unnamed bank, who have said their offer is good until Saturday.
Even though Ramia has said Saturday is a firm date, it seems unlikely the entire project would be scuttled should the federal government take a few weeks extra to decide. But as of Monday, spokespeople for the provincial department of infrastructure, the city and Halifax MP Megan Leslie all said they had no indication who, if anyone, at the federal government was even processing the request.
Ramia has said he has a “Plan B and Plan C” for smaller buildings on the site should the governments fail to fund the convention centre.
This article appears in Jan 13-19, 2011.
Hey, give me the subsidy ! I’ ll build a convention centre out by the airport and throw a commuter rail to the airport for free ! OK OK OK ? I’ll run down to Dubai Islamic Bank and float a sukuk going for the Halifax International Airport and Stanfield Convention and Commuter Project ! All you have to do is cough up $147,000,000 and agree to pay for the basement in my convention hotel for the next hundred years and everything’s good in heaven ! ( The $147,000,000 will pay for the commuter train. ) Then all you have to do is give me the land, out by the airport for free, give me tax free status for the basement and pay me my lease so I can pay back the sukuk ( and pocket a couple million in various fees and kickbacks ) and Bob’s your uncle. It’s a win-win. ( Well at least it’s an imaginative approach and you get free infrastructure. Geez, maybe I can public-private lease the commuter train. Hmmm. )
Mr. Ramia. I don’t know you, but I’m sure you’re a great guy, and I admire your business “acumen”. However, I don’t think you’re being totally straight. Build your hotel. Nobody’s stopping you. Get on with you’re business. If you’re a good developer, you will prosper. You don’t need to take money from the people’s wallet. Don’t be a beggar when you can be capable of great projects on your own. Don’t give up the fight. Find another bank. Make your own convention centre. And when you have made your own way without government assistance you will become part of the pantheon of great Nova Scotians. ( P.S. Don’t forget to leave your money to our great institutions built by dead Nova Scotians who didn’t go around looking for government handouts. ) Go ahead with a clear conscience, you deserve at least that !
My Final Word : “Hey Joe where ya goin’….” Plan B, Joe, Plan C, OK ?
I find that typical of consortiums around here, bully people in getting what you want. I say good for the Feds for not dropping everything (including their brains) for this fool’s plan. I’ll bet the fact that the feds simply did not agree to the “fantastic plan” offered really boils his blood!
The scuttlebutt is the Feds aren’t going to play. I hope this is true.
Hotel owners in Halifax are whispering in the ear of PM. Check the list of registered lobbyists.
Hotel owners are whispering in the ear of PM.