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Originally Posted by FlamesFanTrev
All businesses own depreciating assets. That why the feds let you write off the cost of that depreciation against your profits while calculating taxes. So I don't think that's it.
I think the main sticking point of an entirely CSEC paid Arena is that they essentially are taking all the risk in an asset that limits their future decisions. If your in the red 600 mil to be amortized over 30+ years, your hands are tied on major decisions, such as being able to move the team. You've asked a buiness that has been here for 40ish years to commit to being here for another 30 years, until the arena is paid off and depreciated to nothing (as far as the capital expense of it's construction). It limits their options and reduces their negotiating power with city for a predetermined amount of time. Not saying it's rght, or wrong, but I think that's the issue that CSEC has with a privately funded arena.
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While true, a building is a whole other ballgame. Its not treated the same way as most depreciating assets.
Commitment? I dont think thats much of a barrier either. The whole 'We'll Move the Team' thing is complete Horse-Hockey.
Put it this way: If its the City's building but they get their 2/3s back I can see that being a sticking point. That would be unfair. Because with normal Real Estate you'd take the thing after its appreciated in value and sell it and profit, but with a declining asset like an arena you cant do that.