The City of Quebec affirms that it will pay “cash” the portion of $675 million that it will put into the tramway megaproject. To achieve this, it will use the climate reserve and it is also counting on the tax benefits of the megaproject. The fee, announced by Mayor Marchand during the 2021 electoral campaign, is officially buried.
This is what Mayor Marchand explained Tuesday morning at a press briefing, the day after the signing of two agreements to launch the $7.6 billion tramway.
“We’re going to pay him cash. We will not borrow to pay for our part of the infrastructure,” he assured.
The Municipality has mentioned two ways to finance its portion. First, “the extension of its own contribution to its climate change until 2034” as well as “the reinvestment of tax benefits arising from real estate projects which will be carried out in the zone of influence of the tramway during the same period” , we read.
To citizens worried about the possible tax increase, he reiterated that “never” the increase will be “higher than inflation”.
Quebec City will pay $675 million for the TramCité with a ceiling of $750 million and a floor of $600 million. “It’s not an open bar. We are protected in the event of project cancellation. The City would not have to pay any fees,” noted Mayor Marchand.
«Excellent understanding”
Bruno Marchand insisted that the City will be a member of all the committees that will result from the agreements made public on Monday. “This is not a project that will be done without the City. “It’s an excellent agreement for the citizens of Quebec City,” he rejoiced. In his eyes, “the risks are marked out”.
The mayor added that “federal uncertainty does not scare me,” since the current financial package is “complete” in his eyes.
More details to come…
