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Originally Posted by GullFoss
1) The CLR is a subsidy because it simply diverts taxes that would have otherwise gone into the general municipal tax pool.
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At present, those taxes are nonexistent. They aren't going into the general tax pool because there is no development in the area to tax. Given that the land has been sitting there undeveloped for close to 50 years, it's difficult to see that changing on its own.
It would be easy to exaggerate the
surplus revenues that will be generated by West Village development – i.e., after paying for municipal services to the area. That's why I consider the CRL rather hinky, and hope the city will negotiate that $240m figure downwards as much as possible short of cancelling the project. But those revenues will certainly be greater than zero, and with the present usage of the land, those revenues are zero for the foreseeable future.
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2) The ticket tax is a subsidy of $6 million per year at an interest rate of 3%.
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You are assuming that the city pays the interest and CSEC only repays the principal. Now, maybe I'm a chump, but if I were costing a project like this, I would include interest costs and other carrying charges in the total price. That would mean that the ticket tax generates enough revenue to completely amortize the initial loan, including interest.
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Is the dome past its prime? Yes
But does it justify spending $700mm so I can pee and get a beer faster between periods? it does not.
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Is the money being spent solely so you can pee and get a beer faster? No, it is not. Hint: Let us know the first time there's a football or soccer game at the Saddledome.