Premier OKs new Halifax convention centre

Nova Scotia Premier Darrell Dexter announced Wednesday that the proposed new convention centre for downtown Halifax will get provincial approval.

But, Dexter said provincial funding"is entirely contingent on funding from other levels of government."

"In order for the project to move forward, the province must now enter into discussions with the government of Canada, the Halifax Regional Municipality and the developer about next steps including determining a funding arrangement between the three levels of government," Dexter said at a news conference.

The convention centre, to be built on the former Halifax Herald Ltd. site, is expected to cost $159 million to build with a $2.9 million annual cost for facility maintenance and upgrades. Payments from the province would not begin until 2014.

The centrewould be ready in January 2015.

The development by Rank Group is part of a larger complex that would include a hotel and a financial centre building. The total project is estimated to cost between $400 million and $500 million.

"This development could represent the single largest investment in Halifax's downtown core in more than 20 years," Dexter said. "This type of project has the potential to create tremendous economic opportunities for the entire province and our neighbors."

It's estimated the project will create 1,700 construction jobs, and generate $9.5 million in provincial tax revenue. It's also estimated an additional $40 million in provincial tax revenues would be generated during the first 10 years of operation.

"This will create thousands of jobs, grow the economy, provide opportunities for communities across the province and deliver good value for taxpayers," Dexter said.

The convention centre would be three times the size of the current World Trade and Convention Centre.

Not a done deal

A large crowd of business lobbyists attended the announcement made at the Nova Scotia government's media room in downtown Halifax.

Construction of the new convention centre is not a done deal. Both Ottawa and the city have to agree to pay their share.

The federal government has yet to commit tothe project,making it clearno decision has been made.

Andrea MacDonald, a spokeswoman in Defence Minister Peter MacKay's Halifax office, said "the minister is aware of it and much more discussion is needed."

The office of Chuck Strahl, Minister of Transport, Infrastructure and Communities, confirmed an application for federal funding has been received.

The developer needs a decision by mid-January, or the price tag could change.

Differing opinions

Jeff Ransome, with the Hotel Association of Nova Scotia, is delighted with the news.

"I'm pretty excited. I'd call it progress. It's a symbol that we're ready to move forward as a city," he said.

But Kevin Lacey, with the Canadian Taxpayers Federation, said he's still opposed to the project because of the financing between the developer and the government.

"What the government's asking us to do is foot the full cost of this trade centre and not be able to own it in the end," he said.

The province wants Halifax to buy the old convention centre. Councillors will begin to debate that next week.