Estabrooks still hoping to get convention centre off the ground
By ROGER TAYLOR Business Columnist
Tue, Apr 19 - 7:34 AM
Bill Estabrooks is still determined to have the proposed convention centre built in downtown Halifax, even though the supposed deadline to have financing in place has passed.
Estabrooks, the provincial transportation and infrastructure renewal minister, says the $159-million convention centre is an important piece of infrastructure for Halifax and the region and he will be ready to meet with the new federal minister after the election to get the project back on track.
"I have an obligation, as the infrastructure minister, to be available on a moment’s notice to go to Ottawa or to meet with whoever the new minister wants to delegate those responsibilities to. I’m positive," Estabrooks told me in a phone conversation Monday.
"I think we’re very fortunate to have a partner like Joe Ramia, but it’s something we need and it’s something we’re going to get."
Ramia heads Rank Inc., the development company that won the competition back in 2009 to build the convention centre.
The federal election made meeting Rank’s April 15 deadline for a final decision on government financing moot because the Conservative government failed to sign on before it lost power in a confidence vote March 25.
But it is clear Halifax Regional Municipality and the province are still determined to keep the dream alive. The convention centre is the publicly funded part of a much larger development that includes a hotel, a financial office tower, retail space and apartments.
The total project, estimated to be worth $500 million, is expected to inject enough in new property taxes to offset the municipality’s share of the convention centre cost. Through payroll and sales taxes, the province is projected to generate more than enough revenue to compensate for its role in the project.
The province has obviously asked the developer for an extension, although Estabrooks would not reveal how much additional time it has requested.
Since the original price for the convention centre was negotiated, the cost for petroleum has climbed dramatically. Steel and other components in the building process have also increased in price. So it is expected the cost of the project will rise as a result of the delay.
"I have confidence in the fact that based on our experience, my experience with Mr. Ramia thus far, that we will continue the project," Estabrooks said. "He, of course, as a business person, he’s going to look carefully again at the numbers and that’s going to be part of the negotiations.
"It’s important we look at whatever changes are made. In addition to that, of course, the federal government has to be a continuing partner."
When contacted Monday, Ramia would only say: "We’re negotiating and we’ll see what happens."
Estabrooks says the process has been a challenge since he took on the convention centre project on July 19 last year. But he insists it has "huge merit" and is badly needed.
A well-organized vocal minority opposed to the convention centre has helped to make it an election issue, admits Estabrooks.
"That hasn’t helped the process, but we’ve got to get beyond that, and more importantly, we’ve got to make sure, come the federal election, regardless of the results, that we’re going to pursue this."
No matter which party wins the federal election, he says, Ottawa will be looking at providing a much-needed boost to the regional economy and "this is a great way to make it happen after the election results on May 2."
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