Thursday, October 11, 2012

Flora Niagara 2017 wants $100 million public money

A photo of one of the venues built for the Floriade 2012 International Horticultural Expo in the Netherlands. Photo courtesy Sarada Krishnan, Denver Botanic Gardens

The man in charge of the bid to bring the International Horticultural Expo to Niagara Falls in 2017 says he needs a $100 million commitment from the government by March.
Michel Gauthier, the director of Flora Niagara 2017, said he needs to know by next spring whether or not the various levels of government will help pay for the biggest garden event in the world.
“There comes a point you have to make a decision,” he said. “Our objective is that by the end of March we'll have some sense of security.”
Earlier this week, the International Association of Horticultural Producers approved Flora Niagara's bid to host the 150-day-long expo.
In its bid, which cost nearly $500,000 to put together and submit, Flora Niagara said it believes it can draw between two and three million visitors to the event and generate an economic impact of more than $830 million.
It would employ about 600 people during the show itself, but nearly 7,000 direct and indirect jobs would be created as a result of building and hosting what is the biggest horticultural event in the world.
However, the price tag is enormous.
Speaking from The Hague, Netherlands, where the 2012 Horticultural Expo is being held, Gauthier confirmed organizers need to come up with between $200 and $360 million.
This year's show in Holland cost around $200 million, but the 2011 event in Xi'an, China cost $500 million and the 2010 show in Taiwan cost $400 million.
“Usually (the funding) comes from government involvement because the whole idea is promoting and developing the horticultural industry,” Gauthier said, adding the the Dutch government covered $100 million of the cost to host the 2012 event.
He said in Ontario, there are 70,000 people working for some 10,000 companies in the horticultural industry.
The Flora Niagara director believes his organization can cover about $50 million of the cost through admission fees and another $50 million through corporate sponsorships.
That leaves a $100 to $260 million shortfall, which Gauthier wants the local, provincial and federal governments to cover.
“We have to show the government this is about the economic development of two industries that are crucial to Niagara and Ontario,” he said, referring to horticulture and tourism. “This event will generate a lot of jobs and infrastructure.”
Asked about the federal government's interest in backing the event financially, Niagara Falls MP Rob Nicholson issued a statement saying the organizers will need to go through the typical funding request channels.
“I certainly recognize the enormous potential that this international event will have in further promoting Niagara and Canada as a truly unique cultural and tourist destination,” he said. “Plans for Canada's 150th anniversary are in the preliminary stages. However, any group that would like to access federal funds are more than welcome to send in an application for consideration."
On Thursday, Niagara Falls MPP Kim Craitor said it will be tough for the provincial government to commit to any financial support.
“There are more pressing needs and we have a financial situation we're trying to deal with,” he said.
At the municipal level, Niagara Falls Mayor Jim Diodati also said it's unlikely there will be a big cheque from city hall to help cover the costs.
“If it comes down to a choice between a hospital and a floral show, I'll put my support behind a hospital,” he said. “Of course, if the federal government is looking to fund this as one of Canada's marquee sesquicentennial events, I would rather it be in Niagara than elsewhere.”
Asked if the city would make any sort of financial contribution, he said it would ultimately come down to a vote by city councillors.
“We give money to Niagara Falls Tourism and to the Winter Festival of Lights and that's really the extent of our tourism money. This isn't typically something we would fund,” he said.
Gauthier said the next step in the planning process is to put together a business plan.
“I would think November is when we'll make sure we have the business case developed in detail so we can show what the potential is,” he said, adding that if Flora Niagara doesn't have a financial commitment from the government by the end of 2013, “we'll need to ask if we can delay the event by a year.”
International Horticultural Expo
Year    Location    Cost            Attendance
2012    Holland     $200m        3 million (closes Oct. 7)
2011    China        $500m        10 million
2010    Taipei        $400m        8.9 million

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