Impasse between province, federal gov't holds up $10M for Gordie Howe Sports Complex, Shakespeare fest

An impasse between Ottawa and the Saskatchewan government is holding up a combined $10 million in federal cash for the expansion of two high-profile recreation sites in Saskatoon.

On Tuesday, Saskatchewan Premier Scott Moe tweeted out a letter the province sent Ottawa about its Investing in Canada Infrastructure Plan. 

In short, Saskatchewan wants the federal government to tweak the program's funding arrangement so it can pull money from public transit funds and use them to pay for community projects. Otherwise, Moe's government says it might pull its share of funding for the Saskatoon projects, said Gord Wyant, minister responsible for SaskBuilds.

The federal government has already earmarked $10 million for the Saskatoon projects — but only under a cost-sharing scheme. Therefore, that funding arrangement is uncertain until the governments settle their differences. 

Federal Public Safety Minister Ralph Goodale has called the provincial government's argument "artificial" and added, "Without this federal commitment, these projects would be impossible to undertake. The Government of Canada is going to be the major contributor to every single project."

Waiting to see what happens

Watching from the sidelines is Bryan Kosteroski, the chairman of the Friends of the Bowl Foundation.

The group has already raised $42 million for an ongoing expansion of the Gordie Howe Sports Complex site on Saskatoon's west end, but needs another $20 million to complete the additions. 

The $8 million earmarked by the federal government would help with that effort, Kosteroski said.

"It really would kick start the next phase of our campaign and allow us to move forward some very big projects," he said. 

• Budget expanded for Gordie Howe Sports Complex 

The foundation has already built a new indoor training centre and field track but still needs to complete a new multi-sport centre and field turf for baseball and softball. 

Another group, Shakespeare on the Saskatchewan, is slated to receive $1.7 million in federal money, which is also on hold pending the resolution of the dispute.

The theatre group is raising money for a makeover of its site, including building a new running trail, a bar, a box office, dressing room and amphitheatre. The group declined to comment on the funding impasse or its impact.

• New amphitheatre for Shakespeare on the Saskatchewan coming summer 2020

"It's very important to the community that we see these projects funded," Saskatoon Mayor Charlie Clark said Wednesday.

The city has provided money for both projects. 

"We've been waiting for many, many months to see dollars flowing to all communities in Saskatchewan from the individual bilateral agreements and it's time to get this situation resolved and to see these projects funded for for the citizens of not just Saskatoon, but for Saskatchewan," Clark said. 

Groups in both Saskatoon and other communities have been waiting "many, many months" to move along with projects, Clark added. 

New construction work on Regina's Globe Theatre is also slated to receive federal money, nearly $11 million. 

• Regina mayor says Globe Theatre repairs a priority, but no money until feds, province weigh-in

What exactly is at issue here?

The federal government's Investing in Canada Infrastructure Plan has four funding streams. The Saskatchewan government wants Ottawa to top-up the smallest of the four pots: the $56.2 million Community, Culture and Recreation Infrastructure (CCR) stream. 

"We want to see [the Regina and Saskatoon] projects funded through the CCR stream by way of a reallocation of funds from the Public Transit stream, as per our agreement with the federal government," Wyant said Tuesday. 

"If those funds aren't transferred, then the result is no funding available to the rest of the province in the CCR stream.

"Without approval on this reallocation from the federal government…. it is quite likely that the province would not fund the [Regina and Saskatoon] projects."

In an email to CBC News, a spokesperson for Goodale's office said, "There is $56 million from the Government of Canada now in that CCR stream. That federal funding can be used to cover 40 per cent of the eligible costs of each eligible ‎project.

"The three projects in Regina/Saskatoon are costed at about $52 million in total. The federal funding can cover 40 per cent of that total, or about $21 million. 

"Therefore, that leaves $35 million in federal money yet to be allocated from the Culture and Recreation stream. So clearly the Regina/Saskatoon projects are not gobbling up the bulk of that stream. Most of it remains available to other projects."

Asked for an update about the situation Wednesday, Moe said it was "time to move forward" before missing out on the construction season. 

"We again ask the federal government to look at the parameters of the program that they put together. Saskatoon and Regina have their funding stream to make those dollars available for these Saskatoon and Regina projects; allow the rest of the province to apply into the stream that they have."

Investing in Canada Infrastructure Plan is a 10-year fund that launched last October, so federal money for the projects will be available for many years, a spokesperson from Goodale's office said Wednesday.