Quote:
Originally Posted by New Era
Except that's not what was rejected. The Flames rejected a deal that had the city fronting the money, and then expecting it to all be paid back with some undisclosed mechanism. The city involvement was a loan, nothing more. For that, the city (well, Nenshi) gets everything he wants, the Stampede Board gets everything it wants, the Flames pay for 100% of a building, but nothing else they want. That is a fantastic deal for the city and the Stampede Board, but a brutal deal for the Flames. If the city wants the building in the middle of their poorly thought out entertainment district, they need to buck up some cash and make that their investment. The Flames are putting the building in the city's location, and forgoing all other possible investment opportunities they hoped to achieve with this project, and paying for it. That isn't a fair deal.
Maybe we should spin this another way. Would you be happy if the city fronted the whole nut, then the Flames paid some number ($15M) each year as a lessee, with the Flames getting all revenues from related to the events at the arena?
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I don't think that this is accurate. In the ordinary course, a developer pays for the land, pays for the entire construction of the building, and then also pays the property tax. If the Flames did that, they could build it wherever they like, subject to zoning (which is an important consideration as the City also pays for all of the infrastructure required for such a specialized building).