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Originally Posted by Jay Random
The ticket ‘tax’ is from people who buy tickets at events. I've covered this earlier, but you evidently didn't read it. Those tickets will sell for whatever the market can bear. A percentage of that will go to pay for the project. If the ticket tax did not exist, that would not make the tickets any cheaper.
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Wait, I think you're fundamentally misunderstanding that funding chart.
They need that money up front. It's not like a 20 year operational budget.
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The ticket ‘tax’ is not a tax in the normal sense; if you don't use the facility, you will never pay a dollar of it. If the entire project were privately funded, ticket buyers would still be paying that money, but amortizing the cost of the building would be a purely internal exercise on the owner's books.
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Absolutely. And the privately funded owners would shoulder the risk that the project is a complete disaster, and that maybe they lose money every year cuz they can't sell enough tickets to people wanting to use the fieldhouse.
Right now, the City fronts the 250M (you're not understanding this), and then recoups it through ticket tax (this part you have it right). That 250M is a very large loan and a large liability on our city. It has significant risk - if oil continues to stay low, or maybe Gaudreau/Monahan/Brodie/Hamilton all have career ending injuries, it's very possible that the complex is not break-even.