U.S. tariffs creates uncertainty for Saskatoon’s DEED project

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A major step towards a downtown event and entertainment district in Saskatoon is seemingly on hold, thanks to uncertainty caused by the new reciprocal tariffs announced by U.S. President Donald Trump.

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The City of Saskatoon has been working to create an agreement framework with its potential private partner, OVG360, and some proposed framework changes were expected to come forward shortly. City administration is now looking to pause that for up to six months.

“Recent uncertainty and rhetoric around tariffs has upset the current economic and political environment,” reads a report going to the city’s governance and priorities committee this coming Wednesday.

Trump on Wednesday unveiled 10 per cent tariffs on imports from all countries, and higher rates on dozens of nations that have trade surpluses with the U.S., including 34 per cent for China and 20 per cent for the European Union. For Canada and Mexico, however, there was some relief: no new tariffs beyond what has already been announced, and the month-long exemption expected to expire is now indefinite.

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“Given this current high level of uncertainty and unknowns, and the significant resources invested in this procurement to date, the administration is intending to pause on bringing forward the private partner agreement framework to city council for review and approval, for up to six months,” the report reads.

OVG — a U.S.-based company with its headquarters in Colorado — owns and manages a number of Canadian event and conference centres and has a global portfolio of around 400 venues.

The company was announced in August as the potential private partner on the DEED in Saskatoon. OVG has agreed to pay $20 million as an up-front capital contribution towards building the new facilities, in exchange for management rights to the arena and the convention centre.

The report pointed to Premier Scott Moe’s response to the tariffs, saying that due to the measures announced by the provincial government, the city is expected to prioritize Canadian vendors and contractors with the aim of reducing and eliminating the use of American goods and services.

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An example listed in the report said potential retaliatory tariffs could result in significant additional costs to service contracts.

The federal election on April 28 could also influence Canada’s trade and economic policies, the report reads.

City administration said this pause would allow time to reassess the economic and political environment.

The City of Saskatoon’s chief financial officer last summer released a strategy report that put an official estimated price tag — $1.22 billion — on a DEED project that would completely change the city’s landscape.

Of the $1.22 billion estimate, the city said it plans to seek approximately two-thirds from the provincial and federal governments while paying around one-third — or, as of now, between $354 million and $424 million.

— With Canadian Press files

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