Thunder Bay's mayor is keeping the proposed event centre on his list of priorities despite the project's recent funding roadblock.

The city recently found out that the event centre as it currently stands does not meet the requirements of any existing federal infrastructure funding programs.

The word about the funding came directly from Minister of Infrastructure and Community Amarjeet Sohi in the form of a letter.

"While amateur sports facilities are eligible under the Gas Tax Fund and the newly-added Recreation category of the New Building Canada Fund – National and Regional Projects, facilities for professional sports teams are not," the letter reads. "Professional sports are first and foremost the responsibility of the private sector, which is why our suite of infrastructure programs does not allow for funding of facilities that will house professional or semi-professional athletes."

Thunder Bay Mayor Keith Hobbs says he will keep pushing the proposed event centre as a priority for the city. (Jeff Walters/CBC) But Mayor Keith Hobbs isn't ready to shelve the project yet.

"The letter was disappointing," Hobbs said. "The letter that we had sent Minister Sohi talked about a partnership with Lakehead University, which is amateur sports, so to come back with professional and semi-professional, we're going to have to get some clarification on that."

Hobbs said the city will be speaking with the ministry in an effort to get things clarified.

Facility design an issue

In an interview Wednesday, MP Don Rusnak indicated the decision was largely due to the facility's design. The proposed event centre would contains about 5,700 seats, which puts it in the range of a professional-size arena, and therefore isn't eligible for funding.

"We could go down to 5,200 seats," Hobbs said, adding the previous federal government said a 5,200 seat arena with an amateur team as an anchor tenant would likely be eligible for funding.

"To say that it's built for professional or semi-professional sports, it depends on the size of the crowds you get out, I guess," Hobbs said. "That's another thing that we're going to have to get clarified."

Rusnak did say there might be hope in the second phase of the federal infrastructure funding program, which is currently in development. The federal government is consulting with provinces as it puts the second phase together.

Rusnak was speculating, but said if the provinces request funding for a facility like the one Thunder Bay is proposing, the next phase may include that.

Hobbs said the city will be looking to provide input into the development of phase two.

"We've definitely got more work to do on this," he said. "It's not a dead issue yet."

"If the federal and provincial funding don't come through, then this project is dead and we'll have to look at just replacing the Fort Wiliam Gardens," Hobbs said. "But until I finally hear both levels of government saying 'no, it's not going to happen,' then we're going to keep pushing."