Quote:
Originally Posted by Roughneck
It's been my understanding that the city would back the loan because the city gets a better rate and would be owning the arena and the ticket tax goes to the arena owners, not the operators, to repay the construction cost of the arena.
It isn't a good deal for the city to own he arena in the first place, and while a user fee is the least egregious of the Flames funding models, it is a tax that if "supply and demand dictate" people don't want to pay the city of Calgary is otherwise committed to paying it. Either way the tax paying base is on hook for the loan, voluntarily or involuntarily.
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The Flames asked the City to take out the loan due to interest rates yes, but they also said that if the city declined they would take the loan out themselves. So the ticket tax could very well go to the Flames.