[GGG]

It's so awesome that the Ticket tax was removed from the proposal. As right as the flames were on the ticket tax being a Flames contribution they couldn't sell it to the public that way after Ken Kings disaster. The final deal will have a ticket tax just to avoid HRR.

So to try to equalize these bids we need to assign some values to things. The flames are rent free/property tax free, the flames getting the arena management contract, and the flames maintaining the arena. Let's put this at 7 million per year increasing at the rate of inflation even though that basically just covers taxes and leaves nothing for the arena management contract. And we are missing the opportunity costs for the city land, and the demolition of the dome to be complete.

Flames 285
City 235 cash. (Note a CRL is not free money as development from elsewhere is reduced)
25 Saddledome demolition
30 million Land
245 million operating subsidy / opportunity cost

So Flames 285 City 535 million
private 35% / Public 75%



The city offer
Flames 370 million
City. 185 million

66% private / 33% public

Do nothing assume Saddledome lasts 35 years

City Subsidy to the Flames 6 million per year
210 million 100% public

So basically the Flames are asking the city for an addition 310 million in subsidies over the next 35 years while they are currently making 18 million per season plus external revenues. Since there is no business case for building a new arena and there is no business case for moving no arena should be built at this time until the maintenance costs on the Saddledome become prohibitive.

One thing the flames are right on is that the current city offer is to effectively continue the current rate that the Flames are subsidized at and are putting up no new money.