Saskatoon Councillor Advocates for Federal Energy Funding to Advance Downtown Entertainment District
In a recent city council meeting, Ward 10 Councillor Zach Jeffries highlighted the urgent need for federal energy funding to bring Saskatoon's ambitious Downtown Event and Entertainment District (DEED) to fruition. The councillor stressed that without this financial support from higher levels of government, local property taxes would inevitably rise, placing additional burden on residents.
Project Viability Hinges on External Funding
Jeffries made it clear that the DEED project, which centers around a new arena and event centre in the downtown core, is not financially viable without substantial contributions from other government tiers. "We know that the project is not viable unless we have other levels of government on board with financial contributions here," he stated during the meeting. The timeline for the project remains uncertain, with Jeffries describing it as "not imminent."
The proposed DEED would transform Saskatoon's downtown with not only a modern arena but also parks, a concert terrace, and various entertainment facilities. However, the financial structure requires careful consideration of district energy systems—integrated networks that provide heating, cooling, and steam to multiple buildings efficiently.
Federal Funding Streams and Partnerships
Councillor Jeffries pointed to several federal funding mechanisms that could play a pivotal role, including grants and low-cost financing options specifically designed for district energy and green building initiatives. He referenced successful models elsewhere in Canada, such as a district energy project at a British Columbia university that involved partnerships between a private operator, an Indigenous nation, and BC Hydro.
"That was able to attract federal low-cost financing through the National Infrastructure Bank," Jeffries noted, suggesting that similar collaborative approaches could be explored for Saskatoon's DEED. He emphasized the importance of keeping all options open and thoroughly investigating every potential funding avenue to ensure the project's success.
Partnership Deferral and Financial Considerations
The city had previously identified OVG360, a U.S.-based company with extensive experience managing Canadian event centres, as a potential private partner for DEED. However, in October 2025, council decided to defer the partnership agreement to the first quarter of 2026. This delay came after concerns were raised regarding financing structure, risk allocation, and the terms of the partnership.
Under the proposed agreement, OVG360 would contribute $15 million in upfront capital, with projected operating revenue of $235 million over a potential 30-year term. Despite this private investment, Jeffries argues that federal support for energy infrastructure remains essential to mitigate costs and avoid passing them on to taxpayers.
Broader Implications and Future Steps
Jeffries views the funding discussion as an opportunity to broaden the conversation around DEED and consider elements that may not have been previously examined. "I think more broadly, this is to widen the discussion and consideration of this project," he explained. The councillor's remarks underscore a strategic approach to urban development, where leveraging federal resources for sustainable energy solutions could set a precedent for future projects in Saskatoon and beyond.
As the city continues to monitor successful district energy projects across Canada, the pursuit of federal funding will likely remain a key focus in ensuring that DEED becomes a reality without imposing undue financial strain on local residents.
