Saskatoon city council defers downtown arena project agreement with OVG360

Saskatoon city council has deferred voting on the agreement framework for a new downtown event and entertainment district with the help of Oakview Group 360 (OVG 360).

Last year, the partnership with the Denver-based company was introduced after a successful bid for the $1.22 billion project, but the proposal paused due to economic uncertainty and federal election results.

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The agreement has been modified since it was previously presented at the Governance and Priorities Committee in Aug. 2024, with changes to upfront investments from OVG 360 and its responsibility for operating losses.

According to the approval report, the agreement term has been adjusted from the pre-opening period plus 25 years to the pre-opening period plus 15 years, with an option to extend it an additional 15 years.

Additionally, the capital contribution has also been reduced from $20 million to $15 million; however, the report states the city could receive $225 million in forecasted operating revenue compared to the $170 million from the previous drafted agreement.

The report also states that if the arena is fully operational and the net income is a loss, OVG 360 will take financial responsibility for those funds to ensure it doesn’t fall on the city.

Wednesday was the first time city council heard from OVG 360, and co-chair Peter Luukko said the partnership could give Saskatoon a “seat at the table” for national and international events.

Luukko said OVG 360 hosts over 10,000 events annually, bringing in over 100 million people. He noted the company has major connections in both the music and sports fields.

“We have hosted the national curling championships (and) we’ve hosted a couple of Memorial cups,” Luukko said. “We see that same opportunity in Saskatoon.”

Luukko cited success in cities such as London, Ontario and how a new event center has helped revitalize its downtown.

“London had its first million-dollar condo. There are bars and restaurants, there is a farmers’ marketplace, all adjacent to the facility,” he said.

“It really shows that when private industry and the public can come together to create a project, it not only brings more entertainment into town and is great for the community.”

Ward 5 councillor Randy Donauer asked Dan Willems, director of technical services for the city, how administration could be sure a proper assessment was done to ensure a good deal.

Willems said the city leverages the support of experts and specialists when it comes to projects.

“It’s a good deal,” Willems said. “We’re happy with where we landed on this, but if there is anything that council would like to change, we can certainly renegotiate.”

Ward 3 councillor Robert Pearce presented a motion to defer the decision until early next year, to provide an opportunity for affected organizations to meet with council.