Giant real estate development projects in relatively small real estate markets are rarely successful. There is just not enough critical mass to support them. Edmonton Ice District is a very good benchmark comparison. While the new arena is beautiful and 50% taxpayer-funded, it did not spark the area redevelopment, but merely catalysed a few new buildings. It is still a dump and will be a dump for many more years. In these markets, only prolonged periods of strong economy and strong job market encourage high in-migration, which in turn promotes higher real estate demand supporting larger-size developments.
NHL franchises are great investments on their own merits due to its cartel structure and reasonably high interest in pro-hockey in several markets. Plus, as evidenced around the whole world of pro-sports, team ownership is a highly sought after status symbol for super-wealthy.
__________________
"An idea is always a generalization, and generalization is a property of thinking. To generalize means to think." Georg Hegel
“To generalize is to be an idiot.” William Blake
|