A day after City Council decided to use MSI funding to cover nearly half of a $100 million funding gap for a new downtown arena – the provincial government has confirmed no provincial money will go towards the project.

Premier Alison Redford spoke to CTV News Thursday, and put an end to any speculation there may have been, that the province would put millions into the project.

“The provincial government’s already made a final decision,” Redford said.

“No new money.”

CTV News passed Redford’s comments on to Mayor Stephen Mandel, but he didn’t respond to her statement.

For years, City Council had slated the province would contribute $100 million towards the project.

On Wednesday, Council decided to borrow $45 million of that, and to pay it back using MSI funding – but only if the government agreed to cover the remaining $55 million.

The province has said in recent months that the only way the city could cover that funding gap with provincial money was with money from MSI funding.

“It’s been a concern of mine from the start that we’ve been relying on money that was always doubtful,” Councillor Don Iveson said, calling the missing $100 million ‘the hardest money to get in politics these days.’

Iveson said all of the money is needed to move forward, he said the options have been narrowed down to the city finding it, for the Katz Group to help cover it or for funds from another user-pay component, which would be in addition to a ticket tax that’s already included.

“I think if council wants to proceed with this, council’s going to have to get creative,” Iveson said.

The provincial Municipal Affairs Minister said he expects more money will be available in the future through MSI funding.

However, the clock is ticking for the downtown arena deal – with an agreement already signed in principal, and expected to be finalized by the end of April, a vote has been scheduled for April 24.

“We’re going to have to be realists for the next little while here,” Iveson said. “If this project’s going to go ahead, council and the Katz Group may have to work together to find an alternate source of funds.”

On Wednesday, the Katz Group said it was not willing to put more money into the project.

The city hopes to start construction on the project in 2014, with the arena opening in 2016.

With files from Bill Fortier