Quote:
Originally Posted by Poster
If it’s such a good deal for taxpayers, why so many “blank spaces”? Why the rush?
Are the Flames paying rent or property taxes? Where is the disclosure? All I see is SPIN and radio hotair.
I want to know the exact number that the Flames are paying for rent.
This seems really stupid to me. Ticket prices up, concession prices up, taxes up.
For what? So taxpayers can help Flames pay Milan Lucic 5.25m?
I was fine with letting Edmonton taxpayers fund the few times a year I want to see a music act.
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It’s all in there right now if you look for it. The issue is you have to pick your own discount rate for future cash flows.
The flames get 2% of ticket sales plus 1.5 million per year for youth sport plus 250k per year for naming rights for 10 years. The Flames will pay provincial property tax after the CRL expires. As it’s a city owned building no city property taxes are paid. There is an estimated 138 million over 35 years in property taxes from street facing businesses tied into the arena.
So again this comes down to how you feel about if an arena displaced development or creates development
If you say that the 138 million is not new, and the 75 million in youth sport is not real and use a 3% discount rate for the cost of capital to the city then the city is spending about 180 million NPV.
If you believe the 138 million is new money and the 75 million is new money then the deal breaks about even for the city.
But keep in mind if you only consider direct dollars coming back to the city no piece of infrastructure ever pays for itself as it’s used in the providing of services or creating the opportunity to generate tax dollars. So from that standpoint you’d ask if the 180 million outlay could be better spent elsewhere. The answer is usually yes if you place no intangible value on an arena.
The acquisition of Milan Lucic saves the flames 9 million dollars so it is unlikely that any city Arena funds are going to his Salary. In fact you could argue that the acquisition of Milan Lucic is helping pay for the Arena
