Quote:
Originally Posted by Zarley
After having a few days to digest the proposal, here are my thoughts:
Financing Plan: B
I know that plenty of people are whinging about this (billionaire owners and millionaire players!, rabble rabble, Spendshi etc.) and there is going to be a huge fight regardless of how reasonable the proposal is, but I was pleasantly surprised to see the Flames putting up as much coin as they are for this.
By putting up $450 million ($200M cash, $250M in ticket levy) the Flames are essentially taking care of the arena portion of the project with entirely private money. This a better deal than what Edmonton ended up with and more in line with the way that Toronto, Montreal, and Vancouver financed their buildings.
As I stated above, there is no economic case for privately financed football stadium. We are in need of a new one and the only way this will be achieved is with a public contribution. Including a fieldhouse and community rink makes this far more palatable for public investment.
The CRL should be the main point of contention with this plan. A CRL is would likely be used to finance redevelopment of the West Village in any case. Can redevelopment of the area and construction of the complex be completed with a $240 million CRL? And will subsequent private development in the West Village be valuable enough to support payback of the initial loan? This depends on how well executed the development is.
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Great thoughts.
I want to comment on this part. As it hasn't been determined the Flames are putting up the ticket levy we don't know if they are contributing 450 million. Which is going to be a ticket tax on us.. so if anything they aren't putting up that extra 250 million.