St. Catharines Downtown Association

St. Catharines may have been lucky in the infrastructure lottery, but the three projects underway all come with strings attached that will end up costing local taxpayers even more.

But it's worth it, said St. Catharines Mayor Brian McMullan.

City councillors were handed a financial update this week, tallying up the costs — now and in the future — for the three infrastructure projects awarded to the city through federal and provincial stimulus funding.

The Niagara Centre for the Arts, a new artificial-turf sports field and the new Carlisle Street parking garage will cost a total of $87.6 million, said a report from city treasurer Shelley Chemnitz, with about one third, or $31 million, coming from the city.

The city will borrow some of its share, said Chemnitz, and cover the rest through hydro revenue.

The annual operating cost for the three projects, including debt repayment, will be almost $1 million a year, Chemnitz said, or a 1.3% property tax increase (which comes to $15 for the average homeowner). But if the proposed Shickluna generating station is approved and constructed, the cost will be reduced to about $200,000 a year.

McMullan said even without Shickluna revenue, taxpayers are getting a bargain.

"To get almost $88 million in capital spending for 1% in property taxes is very good value for the taxpayer, and I think most people would agree with that," McMullan said in an interview Tuesday. "This is a once-in-a-lifetime opportunity to get improvements that will last for decades."

A jobs calculator provided by the Federation of Canadian Municipalities estimates that every $10 million in construction spending creates 11,500 jobs, including 5,400 construction jobs, although city administrator Colin Briggs called the estimate "one of those things that's hard to prove."

McMullan said the projects in St. Catharines are valuable for more than just their ability to create jobs. They will improve the quality of life for residents and help make the city an attractive place to live and work, he said.

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