08-18-2015, 01:21 PM
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#1023
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#1 Goaltender
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Quote:
Originally Posted by Tacopuck
I think everyone stating that its too much "public" funds is over-simplifying the structure.
- $200M From Flames - Private Money
- $250M From Ticket Tax - Public Money - But money from people who are actually using the facility - Dont like it? Dont goto games.
- $240M From CRL - This is money from businesses and developments that will build in the area that directly benefit from the arena being there. If there was no arena that area would have a tough time developing into the same level of density as their are proposing. Also it is only a temporary tax, and with that kind of density will add a nice tax base adder for the city.
this is public money. that money is supposed to be re-couped from the businesses IF they are built. A more apt description from CTF http://www.taxpayer.com/commentaries...leight-of-hand which states:
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A more accurate description of the CRL process goes something like this: the city draws an imaginary line around a zone that is called the “Community Revitalization Levy Zone.” This zone can be large or it can be small, it’s completely up to the city. They then figure out what the property within the zone currently pay in property taxes (say for the sake of this example, $10 million). Next they imagine all of the new buildings that could be built if the zone were to be “revitalized.” Then they calculate how much in property taxes (both local and provincial education) the property in this zone would pay after the “revitalization” (say, $25 million). If the province approves the CRL, the city uses the difference ($15 million) as an annual payment on a 20 year mortgage (say, $175 million).
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CRL's are also used to upgrade areas, like East Village to build the community. If you want to revitalize West Village, that money is better spent on the infrastructure.
- $200M From the City - This is the only direct funding from the city wide tax base but considering it was already earmarked for the field house it benefits the whole city funding has not been allocated, for a reason
I get the anti public funding sentiment however people need to look into the details of things a little more. |
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