The province of Saskatchewan, Regina city and the Saskatchewan Roughriders Football Club in Canada have signed a memorandum of understanding (MoU) to build a new stadium at a cost of $278m.
Saskatchewan province will provide an $80m grant in addition to a loan of $100m, while the city of Regina will offer $73m and the Saskatchewan Roughriders Football Club will coordinate for $25m, mostly from sponsorship.
According to the MoU, the loan from the province will be repaid through a $12 fee tacked onto tickets for football games and other events held at the new stadium.
Regina Mayor Pat Fiacco said, "The majority portion of the funding will come in the form of a loan to be repaid over 30 years by the users of the facility through fees attached to the tickets to the game events."
The deal is expected to be finalised at the end of July, following approval from Regina city council.
Saskatchewan Premier Brad Wall said the existing stadium has served them well.
"But it’s time the best fans in Canada and the best team in Canada have the best, new stadium in Canada," Wall said.
The new open-air, 33,000 seating capacity stadium will be built on the city’s exhibition grounds known as Evraz Place, with a planned addition of a roof at a later date.
Construction of the new stadium is scheduled to be completed by 2017.
Upon completion of the new facility, the current stadium will be demolished and the site will be redeveloped into a mix of residential and other uses.