Conventional wisdom: A stimulus for Halifax
Mon. Mar 8 - 4:54 AM
NOW IS not the most opportune time to tap the public purse for $100 million. Yet such an investment could open up a world of opportunities.
So say those who want a new world trade centre built in downtown Halifax where the Herald building once stood. Developer Rank Inc. is behind the Nova Centre project, which could cost $300 million, once you factor in private investment in the adjacent hotel, office and retail space.
The developer would build the facility to the government’s specifications and Trade Centre Ltd., a provincial Crown corporation, would operate it. But in the absence of more details about this particular venture — capital costs, operating costs, how much any of the three levels of government might invest — it’s difficult for anyone else to gauge whether the Nova Centre concept is a good deal for taxpayers. The government envelope is expected to be in the $100-million range, but it’s not yet clear what financing arrangements would be in place.
However, in purely theoretical terms, there’s no doubt a new and improved convention centre would be a significant economic catalyst for Nova Scotia.
Scott Ferguson, president of Trade Centre Limited, says Halifax is missing the boat at the moment because the WTCC doesn’t have the facilities to berth conferences of up to 2,000 delegates. (It can barely host an event half that size.)
Mr. Ferguson told The Chronicle Herald editorial board recently that at least 70 conferences have passed Halifax by in the past three years, which represents $80 million in lost business and $4 million in forgone provincial tax.
He’s convinced that with a bigger rig at its disposal, the city could successfully go fishing in the deeper waters of the fiercely competitive international convention business.
HRM is in a position to capitalize on a number of assets and trends to market itself as a viable destination: its cluster of universities and research centres, which could attract medical conferences; its geography, which puts it within reach of Europe and the U.S., and its friendliness and openness. As access to the U.S. becomes more difficult for visitors from certain countries because of heightened security protocols, Canada is viewed as more hassle-free, he says.
Even the current U.S. corporate climate works in Halifax’s favour, says convention expert Rod Cameron. After the types of excesses seen on Wall Street or at Worldcom, companies are leery about sending employees to locales that are too exotic. Halifax is a safe bet on that score.
Mr. Cameron also says the convention business seems fundamentally sound. The fact it did not sink during the economic meltdown of the past two years is significant. Nor does it seem threatened by new social trends like teleconferencing, he says. There is something about meeting other experts in your field face to face that is irreplaceable.
A new WTCC would not be as risky an investment as a football stadium, for example. It is sure to pay dividends in economic spinoffs and tax revenue. Conversely, failure to launch a new trade centre is sure to condemn HRM to backwater status.
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Some pretty negative comments in the blog attached to the article, albeit few in numbers, of people not wishing tax money be spent on this.