Quote:
Originally Posted by Senator Clay Davis
Well with the purported Flames offer out there now and it being disapproved by some of the stauncher pro-arena folk, it's back into a holding pattern until the election is over. And when Nenshi wins then the fun starts, will the Flames ramp up the rhetoric, or will they come back to the table, tail between their legs, ready to compromise given the public will have effectively spoken. I suppose that all depends how much Nenshi wins by. But it's not really shocking the CSEC bungled something in the process yet again, as I said before even if you support the arena fully it has to be worrying how bad the CSEC has been in just getting something done. Far, far worse than Edmonton's effort.
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There is no confirmation their offer is out there. And if this is the Flames offer, how is it far, far worse than Edmonton's?
The
Rogers Place deal was finalized as a $483.5M project, with the Katz Group paying $132.5M, and $112.8M of that as rent over 30 years. A ticket tax would recover $125M over time. So Katz got an arena built with $19.8M of up front funding, and 30 years to pay $112.8M, meaning the Oilers are leasing the arena for $3.76M a year.
The Winter Garden / Ford Hall component was added at a cost of $56.8M, with the city paying $25M of it in infrastructure costs. The Katz Group paying for $31.7M of the costs, but $25M of it in rent over 35 years, or $715K a year. The Katz Groups up front money on this component was $6.7M.
So in a
$613.7M deal, the Katz Group had to put up
$26.5M dollars, with the City of Edmonton covering the rest directly, through loan guarantees, or cost recovery mechanisms.
Yeah, the purported Flames deal of 50% was far, far worse.
I still believe the deal to be worked out is the 1/3 which both sides mentioned around the time the deal broke up. Both sides mentioned it, and Nenshi even discussed some of the sticking points. There was too much smoke here for this not to be the deal both sides were working on.