THUNDER BAY — The Community Economic Development Commission has approved $500,000 in funding for the Thunder Bay Art Gallery, and the same amount for the planned multi-use indoor turf facility.
In each case, the money will be released over two years from the commission's Tourism Development Fund, which is supported by the City of Thunder Bay's Municipal Accommodation Tax.
That's a 5 per cent levy (increased from four per cent as of Jan. 1, 2025) on the price of a rental in a hotel, motel, or any other short-term accommodations.
Both funding decisions were made by the CEDC board of directors last November, but no public announcements were made.
Paul Pepe, manager of tourism for the city, told Newswatch funding approval announcements generally aren't made until contracts are signed and conditions are finalized.
He added, though, that approvals for the art gallery and indoor turf facility are noted in the minutes of the CEDC board meeting, and that both projects are listed as receiving funding last year on the CEDC website.
In the case of the art gallery, the $500,000 contribution is conditional on the TBAG contributing at least 10 per cent equity to the project, whose cost was pegged at around $57 million in 2023.
The bulk of the funding is already in place through a combination of federal, provincial and municipal contributions, but the art gallery is also seeking to raise $5 million in the community.
Newswatch requested an update from the TBAG on the fundraising campaign and on the final projected construction cost, but did not receive a response.
Executive director Matthew Hills issued a brief statement Monday, saying “The gallery is extremely grateful to CEDC for this important gift to the gallery campaign. It will have a significant impact on the work we are doing to further the building of the new gallery, which will be transformative for our city and region.”
Pepe said the CEDC used various methods to evaluate the potential of the art gallery and the indoor turf facility to increase tourism in the city.
"We use tourism regional economic impact models that help identify anticipated visitation to the gallery and the economic impact of that visitation. Its proximity to the cruise ship terminal, for example, the diversity of its programming, and also as a meeting place and unique venue that could host social and business events.. All those combine to demonstrate it would have a cultural tourism value to the community."
With regard to the covered turf complex, Pepe said the CEDC took into account its potential for hosting regional and provincial events.
"Sport tourism is a big part of what we do. We worked with all the user groups to identify the opportunities this venue will be able to support once built. From there, we were able to develop a sport tourism economic impact model, and run analyses on all these possible events...It's certainly qualified for funding support based on that."
