Quote:
Originally Posted by Locke
I'm sorry, I'm not following. Most taxes are almost literally taxes on the next generation, why is this special?
In most cases it makes a lot of sense for the City to put up the initial down-payment and suck up the ticket tax financing because they get vastly better rates than a company and that reduces financing costs.
But then again, they need to be compensated for that.
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If you consider Edmonton's deal, Mr Katz fronted a mere $20M and pays the remaining share of his $130M over 35 years as "rent". There is effectively no financial contribution from the Oilers under this model at all unless you consider $3M a year much for a city of 1.2M people. The city of Edmonton meanwhile needs to find a way to re-coup half a billion tax dollars in the short term by hitting taxpayers between the legs.
If this deal is what is being peddled by CSEC, I can fully understand why council is releasing the details asap. Katz probably returns that yearly payment in interest while he's able to hold onto his 1/3 share for eternity. Edmonton's mayor should be shot out of a cannon for allowing that to happen.