Quote:
Originally Posted by Hot_Flatus
It is well known that the city is already using those debt/loan mechanisms within its current structure every year so they cannot simply continue to add what could be $500M at the outset to that. This would put the city in a very dangerous position and set a very bad precedent moving forward. Even low interest on an amount that high would be unacceptable anyway considering how little CSEC will ever have to put up for this current sham of an offer that is allegedly on the table.
There was nothing in the previous proposal referencing $200M upfront from the owners, that is completely false. If you're talking CalgaryNEXT that isn't even up for discussion as it wasn't the same situation at all. The comparable is Edmonton based on what we know and this is the way it went with the Edmonton deal. I've posted these figures before so it is readily available for those with the willingness to read.
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We all know the Edmonton deal sucks. By the way are they cutting transit and roads because of all of the financing. To me using the ownerships proposal for CalgaryNext as a starting point for their proposal is pretty reasonable and we can refine as we learn details.
But it is absolute hyperbole that the city can't absorb 500 million in debt financing without affecting other services. They can, full stop. They are no where near the financial borrowing capacity for the city. They are currently approaching their self imposed limit which is well below the provincial limit. It is a non issue. Its like trying to tout economic benefits for the flames. They just don't exist. Neither does the risk you are trying to create. It adds nothing to the debate.