$20.8 million. That's how much the
City of Moose Jaw is about to borrow in order to pay for the
multiplex. The figures were released Monday night
at a special meeting of Executive Committee to discuss how to finance
the project, long term. RBC Royal Bank was selected as the winning
bank for the loan with an interest rate of 4.47 percent.
However, Finance Director Brian Acker
says that number could change in the days to come. "We checked today just to see what
the interest rate would be if we placed the loan today and its almost
five percent. There has been a great deal of volatility in the
markets right now so we probably won't get the 4.47 but we're hoping
that we'll get a little under five percent but that's all dependent
on the markets at the time we go to place the loan."
You'll remember earlier this year,
council passed a 2.77 percent mill rate increase to pay for the
project. But with millions of dollars in the city's reserves, some
are asking 'why not just cut a cheque and be done with it?' Acker explains the city reserves are
actually making money right now with an interest rate of around 6.9
percent so if they spent that they would be losing money instead of
just paying the 4.47 percent to the bank.
Meanwhile, the physical work on the
project continues. McColmon and Son Demolition is plugging away at
clearing the downtown site of old buildings so construction can get
underway in the very near future. The site is expected to be ready
for ground breaking by the middle of July. The soccer/field house on
High Street West should be built and ready to go by the summer of
2010 with the multiplex ready for the 2011/12 Western Hockey League
season.