The province of Ontario is promising money for a new Catholic elementary school in Baden and upgrades at the New Hamburg Arena.

Kitchener-Conestoga MPP Mike Harris was at the New Hamburg Arena Tuesday morning to make the $16.2 million announcement.

Just over $12 million will be going to the yet-to-be-constructed school in Baden. The province says the money will help create 294 student spaces, 88 licensed childcare spaces, and five childcare rooms.

"Our region has seen tremendous growth in the last few years" said Jeanne Gravelle, chair of the Waterloo Catholic District School Board. "And with the continued growth in our board this is very very welcome news to assist us in meeting the needs of Baden and the surrounding areas."

The funding is in place until 2027, but no date has been set yet for construction.

The remaining $4.1 million will be invested in the New Hamburg Arena reconstruction project, which aims to modernize the facility to comply with current building and fire codes.

The arena aims to be a hybrid facility that can accommodate sports and recreation, as well as be a year-round home for The Community Players of New Hamburg theatre company.