Steinbach City Council has approved the final borrowing required for the Southeast Event Centre, passing a bylaw to secure a $7.5 million loan from the Royal Bank of Canada.
Council gave third reading to Bylaw 2256 during its most recent meeting, following approval by the Manitoba Municipal Board. The loan is part of the City’s broader financing plan for the $74.3 million project, which includes contributions from other levels of government, private fundraising, and city funds.
“The particular debt that was negotiated is for a five-year term at a rate of 3.8% interest per year,” City Manager Troy Warkentin explained. “Approval has now been provided by the board, subject to two amendments that are strictly administrative in nature.”
Part of City’s $30.3M commitment
Deputy Mayor Michael Zwaagstra says the Southeast Event Centre is funded through a variety of sources.
According to steinbach.ca, the $7.5 million loan is part of the City’s total contribution of $30.3 million, which is being covered through a combination of reserve funds, operating funds, and borrowing. According to the City, the Southeast Event Centre is also receiving $17.5 million in federal and provincial infrastructure grants, $1 million from the province’s Arts, Culture and Sport in Community Fund, and $25.5 million in private and community fundraising.
“This is the final step in borrowing for the Event Centre project,” said Councillor Jac Siemens, who made the motion for third reading. “When we budgeted this initially, we had an interest rate of 7%. We actually got it for almost half of that at 3.8%. We’re very fortunate.”
Loan expected to be paid off by 2030
Councillor Bill Hiebert also spoke in favour of the motion. “We’ve all seen the Event Centre and it’s a beautiful building,” he said. “To have interest rates at 3.8 is a pretty good interest rate.”
Zwaagstra says this will be the last of the borrowing for the new facility.
The Southeast Event Centre, located on the former arena site at Reimer Avenue and Arena Road, officially opened to the public earlier this year and is now hosting community events, hockey games, and concerts. The Grand Opening celebration is scheduled for August 21st.