Organisers of the Canadian Grand Prix have confirmed a new deal to keep the event on the Formula 1 calendar until 2029.
The current contract had been due to expire in 2024. But representatives of the Canadian and Québec governments including Montréal Mayor Denis Coderre announced a five year extension on Friday.
The federal government will invest $36.2 million (Canadian), the province $28 million and the city $34 million. The money will go toward hosting fees paid by Société du Parc Jean-Drapeau (SPJD) to Liberty Media.
There will also be significant investment in in the local facilities. A new building housing the paddock, garages, media centre and medical centre is to be developed in time for the 2019 Canadian Grand Prix. Work on the new facilities will start immediately after next year's race.
The upgrade has been mooted for several years. The current paddocks, garages and control tower are considered antiquated and undersized. However the City of Montréal wanted to finalise the extension of the hosting contract before committing the public funds.
The federal government said that its financial support for the Grand Prix would result in major economic spinoff benefits. Minister of transport Marc Garneau explained that the deal would help maintain and create jobs in the region.
"The return on our investment is excellent," Garneau said. "It's not only the money that is generated during the event itself, it's that this event brands Montreal around the world.
The race is one of the largest tourism events in the country. More than $40 million was generated in the economic benefits generated by last year's Grand Prix.
"Tourism is an essential component of the Canadian economy," noted Navdeep Bains, the minister responsible for community economic development.
"Our Government is confident that renewing its funding agreement with the Montréal's Société du Parc Jean-Drapeau to hold the Formula 1 Grand Prix du Canada will provide significant global visibility for Montréal, Quebec and Canada.
"The extension of this agreement is also excellent news for small and medium enterprises. Accommodation and food services and the entire Montréal business community benefit directly from the significant economic spin-off from the Grand Prix."
The government said that it is also putting in place measures to address sexual exploitation and other illegal activities that occur during the Grand Prix weekend.