The Cenovus Energy Hub has been a hot-button topic during budget time and we may finally have a timeline regarding a funding request to the Alberta Government.
The arena is budgeted to be over a $100 million project with the city passing a borrowing bylaw to take $33 million to help fund the project.
In the 2025 budget, there’s just over $8 million being taken out through the borrowing bylaw to support the project.
During budget discussions, Coun. David Lopez asked about the specifics of the funding.
“If we don’t sell those retail lots, or the lot for the hotel, and there is a portion of the debt that hasn’t been allocated, I think it’s $7.3 million, will that change this taxation and how much we have to put on that facility,” he asked.
Adele Wakaruk, executive manager, corporate services, gave some clarity on the borrowing bylaw and the amount budgeted.
“The current borrowing bylaw has debt at $33 million, the prior budget and this budget uses the $33 million that’s already been approved,” she said.
Commercial and retail unit sales are part of the budget, if successful the city has $5 million in the budget coming in from these sales.
“If there are any shortfalls in the commercial retail units for example, we’re closely monitoring that situation so that we can certainly come up with a funding plan,” said Wakaruk.
Fundraising for the project is still ongoing with the goal being to raise a total of $8 million. As of Nov. 5, $3.6 million has been raised through the Fill the Seats fundraiser, leaving just over $4 million left to reach the goal.
The city has also received funding from both the Saskatchewan and federal governments for just over $16 million each. There was also a transfer of $11.7 million from reserves to help fund the project. There’s also been $3 million in other government funding.
In the most recent budget update for the Cenovus Energy Hub, for the period ending on Sept. 30, there’s still $7,380,926 in unsecured funding.
A funding request has been in with the Alberta Government to help with the funding and there’s been no update as to when or if that funding will come.
“We’ve got two plans in place right now, we have one one as we’ve publicly said we’ve got a request into the provincial government on the Alberta side for support for the Cenovus Energy Hub project, we expect to hear that in short order, successful or unsuccessful,” said Dion Pollard, Lloydminster city manager.
No timeline on the funding or updates on conversations with the provincial government have been given by Pollard, who says they expect to hear back soon.
“We’re expecting to hear before the end of this year from the Alberta government on success,” he said.
He says they’ll bring a plan forward to council when they know more about the details of the provincial funding request.
Pollard explains there are plans in place for whichever situation arises.
“It takes into consideration. We anticipate we will be able to sell the lots, maybe it takes a little more time than anticipated, same thing with the fundraising, we have plans in place for all of those situations should they arise, in our perfect world we get the Alberta funding, the project’s fully funded, if not we certainly have some challenges that we’re prepared for, we’ll bring those to council once we’re aware of what the situation is,” explained Pollard.
The draft 2025 budget is still in its early stages and will see further review by the newly elected council.
Read more: Cenovus Energy Hub completes major work
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