Convention centre needs tax exemption: province

The Halifax Regional Municipality is being asked to exempt the proposed new convention centre from paying property taxes, a move that would cost it $1.2 million a year in lost revenue.

The detail emerged Tuesday as regional council started debating the merits of a new facility on Argyle Street.

Mayor Peter Kelly called the request for a tax exemption a "red flag." The current World Trade and Convention Centre pays property taxes, he noted.

"For us, that is our revenue flow. We never wish to interfere with the province's revenue flow of sales tax through the HST or through their income tax," Kelly told reporters.

"There's no reason or rationale why they should be interfering with our revenue flow, because that's how we pay for things, that's where we get our revenue from."

The proposed convention centre, which would be three times the size of the WTCC, is expected to cost $159 million to build. The annual bill for maintenance and upgrades would be $2.9 million.

The Nova Scotia government announced last week it will approve the project, but both the municipality and the federal government have to help pay for it.

The province wants HRM to be an equal partner in funding the construction and covering possible annual deficits over the 25-year lease.

The municipality has also been asked to buy the current convention centre.

Councillors opposed

"I have supported in principle this project all along the way," said Coun. Steve Streatch, who represents Eastern Shore-Musquodoboit Valley.

"I can tell you the quickest way to alienate me is to put me in a corner and to lay down ultimatums."

Coun. Sue Uteck, who represents Northwest Arm-South End, said the secrecy surrounding the convention centre proposal was beginning to resemble the failed Commonwealth Games bid in 2007.

"We are asked to be a partner, and yet we are being dictated the terms to, so I am very uncomfortable at this point," she said. "I'm really kind of stunned to get this."

Several councillors, such as Coun. Stephen Adams, suggested the provincial government had a sinister motive for making the "unrealistic" demands.

"If I didn't want to do something, I'd put conditions in that would jam somebody else into refusing it and making someone else look like the bad guy," he said. "That is perfectly clear here."

The councillors unanimously passed a motion asking municipal staff to further analyze the province's request and its cost to taxpayers. That report — which is expected to include recommendations and other potential sources of funding — is due Nov. 9.

Council also requested that the municipal auditor general be involved.