Quote:
Originally Posted by Frequitude
This would be my preferred deal structure.
1) Owners pay the cost of the arena. I will assume this is $450M and they can pay for it however they want (up front cash, ticket tax, Murray Edwards' Visa, etc.). Just so long as the ticket tax loan isn't fronted by the taxpayer at an artificially low interest rate.
2) City kicks in $200M of Fieldhouse funds.
3) Owners pay the incremental cost of bringing a basic fieldhouse up to the standards required for CFL. I will assume is the $250M the CRL is needed for. Again, they can finance this however they want, so long as it isn't with a sweetheart loan from the tax payer.
4) The creosote liability is funded by whichever level of government holds the liability. (note, I don't know who technically holds it or even if a level of government does for sure).
5) The city owns the new arena and obtains revenue by leasing it out to the owners. Major improvements are footed by the owners. I'm uncertain on how to chop up maintenance.
6) The city fixes the surrounding road infrastructure. This is where I want the $250M CRL money going, even though that would be effectively the city lending money to itself.
So basically take the existing proposal, make the owners pay for the fieldhouse->arena scope upgrade and use the CRL to instead pay for the roads.
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I came to almost the same conclusion as you, with the exception of #5. If the Flames put up the money for the building, let them own and operate the building (on long-term leased land from the city). The city benefits from taking property tax on the building, and can theoretically re-sell the land at the end of the lease period (e.g. 50 years); conversely, we'd be on the hook for rental fees if the city (we) want to use any of the facilities for public good (e.g. practice facility as a public rink).
Oh-- and I'd much prefer the Stadium outside the WV. I really dislike the integrated design at that cramped location. I have looked at the figures in King's presentation and I frankly think the "savings" are a bunch of BS. They've given high-ball costs for individual components to come to $1.2B, then magically knocked $330M off that without explaining how.