Sask. city borrowing millions to cover missing donor cash for massive new arena [Video]

Saskatchewan’s third-largest city plans to borrow an additional $18 million to cover funding gaps for a major arena and aquatic centre.

Prince Albert’s city council approved the loan on Monday, adding to the $46 million in debt already incurred on the project, which has faced cost overruns.

The city said this new loan wasn’t due to an increase in the project budget.

In a statement released before the meeting, city manager Sherry Person said administration failed to consider that fundraising commitments would be paid over several years, rather than in a lump sum.

Mayor Greg Dionne told councillors he’s confident the $18 million loan would be covered by donation money already committed to the project, but not yet paid.

“These are business leaders or community leaders that are stepping forward and going to donate to us millions of dollars towards this project,” he said.

“But they’ve asked us, ‘We’re gonna give you a million dollars, but …