Quote:
Originally Posted by MisterJoji
I haven't waded through every post in both threads so don't know if this has been touched on but could the city offer up a scenario where they make the same percentage in revenue generated by the new facility as the cost they're willing to commit? I.E. City puts up 33% of the project cost (not a loan) but then get 33% of all revenue generated by the new arena.
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It's possible but a few things would have to be negotiated, which is really what this standstill comes down to.
First, it would have to be earnings, not revenues (account for operating expenses, interest, taxes, etc).
Second, whoever operates/manages the facility won't do so for free. That fee has to be high enough to make the effort worthwhile. It also has to be low enough to not cut into the 'silent partners' share of the profits too much. And the formula has to be agreed on. Flat amount + inflation each year? Thats not lucrative enough. . A cut of concessions, parking, advertising? Determining that share is tough but possible, but can fluctuate each year too. Or a hybrid of both. But the Flames will want to keep it all, but the City wants a fair share for what they invest, even if they don't operate it.