GTA Sports & Entertainment announced on Tuesday a new option for the financial framework for the GTA Centre, the proposed multi-purpose, NHL-size arena in Markham, Ontario.
GTA Centre, LP would be responsible for funding all costs towards the construction of the facility above a maximum amount of $162.5 million, which the City of Markham would facilitate through receiving private sector developer contributions.
The original plan would see Markham borrow $325 million. The private partners behind the project would repay half of the loan ($162.5 million) and the city would pay off the other half through levies on developers.
Two leading investment banking firms, Wall Street firm Jefferies LLC and Bay Street firm Canaccord Genuity have joined the GTA Centre team to support this new option.
GTASE CEO Graeme Roustan says a new option takes away the risk because the city no longer has to borrow any money.
“We’ve brought on two financial advisors. One on Wall Street which is Jefferies and Company and here in Toronto, Canaccord Genuity,” Roustan told 680News. “These two organizations are in the business of raising billions of dollars for projects.”
In August Jack Heath, deputy mayor of Markham, and originally a supporter of the proposed GTA Centre arena, reportedly put forward a motion to kill the financial framework for the 20,000-seat rink.
