Provincial Release:
Premier Darrell Dexter announced today, Oct. 13, that the province is looking to the future by supporting a new convention centre in partnership with the federal government and Halifax Regional Municipality.
"This will create thousands of jobs, grow the economy, provide opportunities for communities across the province and deliver good value for taxpayers," said Premier Dexter.
Construction of a new convention centre will also generate $9.5 million in provincial tax revenue. An additional $40 million in provincial tax revenues would be generated during the first 10 years of operation.
The new convention centre advances the government's efforts to improve the financial situation in Nova Scotia. The Premier's Economic Panel said that spurring economic growth is one of the most important ways to help the province get back to balance.
"This development could represent the single largest investment in Halifax's downtown core in more than 20 years," said Premier Dexter. "This type of project has the potential to create tremendous economic opportunities for the entire province and our neighbors."
The potential spin offs of the project are far reaching. Businesses across Nova Scotia stand to benefit both during and following its construction. Industry trends show that 30 to 40 per cent of delegates extend their visits for personal travel. Meetings and conventions rely on a range of Nova Scotia companies for products and services such as transportation, local produce and local entertainment.
"A new convention centre will act as a gateway and bring new visitor activity that will spread across Nova Scotia," said Darlene Grant-Fiander, president of the Tourism Industry Association of Nova Scotia. "Regional, national and international meetings and conventions result in new dollars entering the province and this announcement is great news for tourism operators."
With larger, more flexible space, it's estimated that during the first 10 years of operation, the convention centre will host 6,800 events with over two million visitors. One national or international convention of 1,000 delegates can result in more than $1 million of new spending in shops, restaurants, hotels and on transportation.
Nova Scotia is currently unable to accommodate major national conventions, resulting in a loss of millions of dollars in potential revenues each year. The new state-of-the art centre will allow multiple groups to be hosted at the same time, with the flexibility to accommodate a variety of event styles. It will feature higher ceilings, large column free rooms and other modern features that are necessary for today's conventions.
A shadow bid used to evaluate the proposal shows that the developer can build the new integrated centre for $26 million less than the province could build a stand alone convention centre.
Construction of the new centre will cost $159 million with a $2.9 million annual cost for facility maintenance and upgrades. Payments from the province would not begin until 2014. The convention centre would be part of a larger complex, including a hotel and office tower.
"A state-of-the-art convention centre is an investment in education and human capital," said Steve Snider, president of the International Bridge, Tunnel and Turnpike Association, a prospective client of the new centre. "Our reputation combined with the right facility will position Nova Scotia as an attractive destination capable of hosting the best and the brightest in the world."
In order to move the project forward, the province now expects to enter into a cost-sharing partnership with the Government of Canada and the Halifax Regional Municipality.
