SaskatoonSaskatoon city council deferred a decision on the framework for a deal with a private company to run a future downtown arena district despite support for it from city administration.Future of proposed deal with private Denver-based arena operator uncertain after postponementPhil Tank · CBC News · Posted: Oct 29, 2025 2:53 PM EDT | Last Updated: October 29Listen to this articleEstimated 5 minutesAn artistic illustration of what a future downtown event centre could look like in the parking lot north of the Midtown Shopping Centre in Saskatoon. (City of Saskatoon)Saskatoon city council has deferred its decision on the framework for a deal with a private company to run a future downtown arena district — despite support for it from city administration.In an unexpected development, council voted unanimously to delay discussing the framework until the first quarter of next year, even though officials from Denver-based OVG360 travelled to Saskatoon to answer questions from council.“We’re very bullish on Saskatoon,” OVG360 co-chair Peter Luukko told council following a 15-minute presentation by the company’s delegation.OVG360 officials declined to speak to reporters following council’s vote.In an unusual and awkward moment, Mayor Cynthia Block seemed surprised when no councillor would move the recommendation from administration to approve the framework. Coun. Robert Pearce suggested council defer debating the matter until the new year and council backed that move.OVG360, which was chosen as the private partner to operate a future arena district estimated to cost $1.2 billion, asked this year to renegotiate the original framework. The revamped deal would mean OVG360 would put up less money to help build the district — $15 million, down from the original $20 million — but the city would receive a larger share of arena profits if they rise above $4 million a year.The length of the deal would also be shortened to 15 years from 25 years, but it includes the possibility of extending it another 15 years.“It’s a good deal,” said the city’s director of technical services, Dan Willems. “We wouldn’t be recommending it otherwise. We’d still be at the negotiation table.”OVG360 officials stressed the company’s experience operating more than 300 facilities, including several in Canada, such as arenas in downtown Hamilton, Ont., and London, Ont. But Trevor Jacek, a member of the board that oversees the SaskTel Centre arena and the chief financial officer of the Mid-West Group development company, criticized the proposed framework.Jacek pointed out that OVG360 is putting up about 1.25 per cent of the cost of building the arena, but would receive $90 million in revenues over the 30-year life of the deal. He pointed out the city is assuming all the risk of construction.“No prudent investor would ever sign that deal,” Jacek told council. “And I don’t believe the taxpayers of Saskatoon should either.”The North Saskatoon Business Association wrote to council to ask that a decision on the framework be delayed a month. Saskatoon’s business community has generally supported the plan for a new downtown arena.Willems told council that aspects of the deal can be renegotiated even after it’s approved.City officials have “conservatively” estimated the arena would yield about $6 million in profits in its first year. SaskTel Centre makes about $1.5 million a year in profits. Willems said it would be “problematic” to compare Saskatoon’s 37-year-old facility with a new arena, which would have more opportunities to generate revenue.OVG360 would assume responsibility for any operating losses under the framework, Willems said. But SaskTel Centre has never operated at a loss, he added.The proposed new arena in downtown Saskatoon would be built on this parking lot north of Midtown Plaza and TCU Place. (Trevor Bothorel/CBC)The refurbished framework suggests revenues of $250 million would be generated over 30 years and that revenue would help pay back the debt needed to build the facility.The proposed plan for a downtown arena district, officially named the Downtown Event and Entertainment District, includes a renovated and expanded convention centre where TCU Place is located.TCU Place has lost about $500,000 a year since the COVID-19 pandemic began, but is expected to be close to breaking even this year. Under the proposed framework, OVG360 would not assume responsibility for losses at the rehabilitated convention centre.In OVG360’s presentation, the officials said an effort would be made to hire current arena staff and honour union contracts. The company is also committed to hire local people and local companies, council heard.“We want this arena to be [Saskatoon] and have the taste of [Saskatoon], and have the feel of [Saskatoon] and work with local purveyors,” said Luukko, who mispronounced the city’s name.The arena has no commitment for funding from either the federal or provincial governments, which are essential for the project to proceed.Willems estimated the design work would take 18 to 24 months once funding is secured, followed by four years of construction.Council also heard that former OVG360 CEO Tim Leiweke, who resigned after being indicted this summer for allegedly rigging bids for a university in Austin, Texas, remains on the board.
Saskatoon council defers decision on new framework for downtown arena deal
