Calgarypuck Forums - The Unofficial Calgary Flames Fan Community - View Single Post - Arena negotiation discussion. UPD: Flames release their proposal

GGG · 10-01-2017, 01:40 PM

The new subsidy of the Flames proposal is far higher than what you are calculating. The flames are only promising a 35 yr lease

225 million up front for a 35 yr lease at a 3% discount rate is about 10 million per year. A little more actually plus the city contribution per the Flames proposal doesn't include land or Saddledome demo which makes it about 300 million Flames bumping up the subsidy further.

This means my statement of the Flames wanting to double or triple their annual subsidy is more or less correct. I peg their current subsidy at around 6 million in just discounted rent. I don't believe that capital value of the current building should be used when calculating their current subsidy as in the build new case the city doesn't recover that 4 million per year so you either have to add it on both sides or none at all.

The city proposal is essentially to maintain the current rate of subsidy of the Flames. I do think that once the Saddledome gets to its end of useful life this equation might change.

10-01-2017, 01:40 PM	#3119
GGG Franchise Player Join Date: Aug 2008 Location: California Exp:	The new subsidy of the Flames proposal is far higher than what you are calculating. The flames are only promising a 35 yr lease 225 million up front for a 35 yr lease at a 3% discount rate is about 10 million per year. A little more actually plus the city contribution per the Flames proposal doesn't include land or Saddledome demo which makes it about 300 million Flames bumping up the subsidy further. This means my statement of the Flames wanting to double or triple their annual subsidy is more or less correct. I peg their current subsidy at around 6 million in just discounted rent. I don't believe that capital value of the current building should be used when calculating their current subsidy as in the build new case the city doesn't recover that 4 million per year so you either have to add it on both sides or none at all. The city proposal is essentially to maintain the current rate of subsidy of the Flames. I do think that once the Saddledome gets to its end of useful life this equation might change. Last edited by GGG; 10-01-2017 at 01:43 PM.