Moncton makes pitch to borrow $95.4M for downtown centre
City officials appear before Municipal Capital Borrowing Board to seek permission to get loan
Moncton will made its pitch Tuesday to borrow up to $95.4 million to pay for a proposed sports and entertainment centre in the downtown area.
A public hearing was held before the province's Municipal Capital Borrowing Board in Fredericton where Moncton's chief financial officer made the case for the complex.
The city also had to explain how it will avoid going over budget.
Officials say they are confident in their consultations with the developers that they'll stick to cost targets.
The centre will have 9,000 seats and will house the Moncton Wildcats hockey team.
The province has already committed to provide $21 million, while details of federal contribution have not been released yet.
City council voted on July 6 to request permission from the board to borrow up to $94.5 million to pay for construction of the controversial centre.
Although the request is for up to $94.5 million, Mayor George LeBlanc said the city only plans to borrow about $39 million.
The rest of the money for the estimated $107-million project would come from the federal and provincial governments, the sale of land adjacent to the site and a capital fundraising campaign.
Councillors Paul Pellerin and Brian Hicks voted against the motion to make the application to the borrowing board for the authorization to borrow up to $94.5 million.
City council still has to approve the project. The deadline for that is early August.
The borrowing board will make its decision in the next two weeks.
The Municipal Capital Borrowing Board is comprised of a group of public servants in the Department of Environment and Local Government.
The public hearing took place in the department's office building in Fredericton.
The city wants to put the sports and entertainment centre on the former Highfield Square property in downtown Moncton. It has purchased the property and demolished the former mall on the site in preparation for the project, should it go ahead.
Once approved, construction is set to start this winter.