After many years of negotiations, it seems finally Calgary may get a new Event Centre. While the deal is still in principle with a lot of details to be ironed out, could it be the catalyst for an agreement was the provincial contribution of $330 million?.I have always been skeptical of the funding arrangement, and still am.. Marcel LatoucheMarcel Latouche .The cost of the proposed new agreement — which received unanimous support from Calgary's city council — now stands at $800 million. That makes it more expensive than the $634 million of the previous deal that Calgary Sports and Entertainment Corp. (CSEC) backed out of in December 2021. The city’s share will be $537.3 million to fund the Event Centre, parking structure, the enclosed plaza and 25% of the community rink. In effect, public funds will still be the major contributor to this project. CSEC will immediately put in $40 million and later $17 million per year (increasing 1% per year) over 35 years to offset Event Centre costs, parking, the enclosed plaza and 25% of the community rink, and $1.5million per year for community sports..The CSEC contribution may sound great at first when we look at it in terms of a 35 year deal that may result in more than $800 million. But, it is still in the future. In my opinion 35 years is a long time, and who knows whether the Flames will still be in Calgary over the next 35 years, given their performance and their inability to bring a trophy to the city. I would have preferred a shorter term of 25 years. Furthermore, the NHL is going to see increases in players contract and salaries which could put pressure on the Canadian franchise when exchange rates are also considered..Then there is the Calgary Stampede carrot of land exchanges and transactions to ensure the Rivers District can grow and develop. It may well provide the right space for the vision of a long-term success of a Culture + Entertainment District, but it will require further taxpayers’ dollars to accomplish the Rivers District Master Plan..The province will provide funding of $300 million for transportation improvements, land, infrastructure and site enabling costs. That is to include off-site and on-site utility servicing costs, public realm and site clearing/demolition, plus $30 million to fund 50% of the community rink. Could this money have been the catalyst for the deal? It could well be..However, excuse my skepticism or is it perhaps coincidental that suddenly the city also decides to undertake major improvements to the Arts Common. Robbing Peter to pay Paul? Too often councillors and supporters of this project tell Calgarians this project is a great investment. The question is who's investing? Politicians and private investors are investing based on their own vested interests. The private investors are rightly seeing a return on their investment. However, since we don't see any real revenue from a city-owned event centre, where is the return for Calgarians? The only return is for politicians whose support will be buying future votes to continue their political career..A true investment by Calgarians would have been the use of Tax-Free Municipal Bonds to fund part of this project. (This method was successfully employed in New York's City Field.).The Institute for Public Sector Accountability released a paper to that effect, which is in the possession of Premier Smith and both the former and future Municipal Affairs Ministers. The public would be allowed to buy bonds which would yield tax-free income that could also be held in a TFSA. This proposal would achieve two things: true public participation and truly allow politicians to call the project an investment..If there is no true direct return to the public through a tax-free investment, it continues to fuel my skepticism about the funding model for such a massive undertaking. Too many public funds, not enough private money..However, after so many years of waiting to see something tangible happen in Calgary, I'm reluctantly prepared to accept a deal — perhaps when finalized, one that includes the Municipal Bond proposal. Ever since the Olympics of 1988, Calgarians suffered from a huge Edmonton envy. It's time to put this to bed and get a structure deserving of the name — Calgary Event Centre..Marcel Latouche is former president & CEO of The Institute for Public Sector Accountability
After many years of negotiations, it seems finally Calgary may get a new Event Centre. While the deal is still in principle with a lot of details to be ironed out, could it be the catalyst for an agreement was the provincial contribution of $330 million?.I have always been skeptical of the funding arrangement, and still am.. Marcel LatoucheMarcel Latouche .The cost of the proposed new agreement — which received unanimous support from Calgary's city council — now stands at $800 million. That makes it more expensive than the $634 million of the previous deal that Calgary Sports and Entertainment Corp. (CSEC) backed out of in December 2021. The city’s share will be $537.3 million to fund the Event Centre, parking structure, the enclosed plaza and 25% of the community rink. In effect, public funds will still be the major contributor to this project. CSEC will immediately put in $40 million and later $17 million per year (increasing 1% per year) over 35 years to offset Event Centre costs, parking, the enclosed plaza and 25% of the community rink, and $1.5million per year for community sports..The CSEC contribution may sound great at first when we look at it in terms of a 35 year deal that may result in more than $800 million. But, it is still in the future. In my opinion 35 years is a long time, and who knows whether the Flames will still be in Calgary over the next 35 years, given their performance and their inability to bring a trophy to the city. I would have preferred a shorter term of 25 years. Furthermore, the NHL is going to see increases in players contract and salaries which could put pressure on the Canadian franchise when exchange rates are also considered..Then there is the Calgary Stampede carrot of land exchanges and transactions to ensure the Rivers District can grow and develop. It may well provide the right space for the vision of a long-term success of a Culture + Entertainment District, but it will require further taxpayers’ dollars to accomplish the Rivers District Master Plan..The province will provide funding of $300 million for transportation improvements, land, infrastructure and site enabling costs. That is to include off-site and on-site utility servicing costs, public realm and site clearing/demolition, plus $30 million to fund 50% of the community rink. Could this money have been the catalyst for the deal? It could well be..However, excuse my skepticism or is it perhaps coincidental that suddenly the city also decides to undertake major improvements to the Arts Common. Robbing Peter to pay Paul? Too often councillors and supporters of this project tell Calgarians this project is a great investment. The question is who's investing? Politicians and private investors are investing based on their own vested interests. The private investors are rightly seeing a return on their investment. However, since we don't see any real revenue from a city-owned event centre, where is the return for Calgarians? The only return is for politicians whose support will be buying future votes to continue their political career..A true investment by Calgarians would have been the use of Tax-Free Municipal Bonds to fund part of this project. (This method was successfully employed in New York's City Field.).The Institute for Public Sector Accountability released a paper to that effect, which is in the possession of Premier Smith and both the former and future Municipal Affairs Ministers. The public would be allowed to buy bonds which would yield tax-free income that could also be held in a TFSA. This proposal would achieve two things: true public participation and truly allow politicians to call the project an investment..If there is no true direct return to the public through a tax-free investment, it continues to fuel my skepticism about the funding model for such a massive undertaking. Too many public funds, not enough private money..However, after so many years of waiting to see something tangible happen in Calgary, I'm reluctantly prepared to accept a deal — perhaps when finalized, one that includes the Municipal Bond proposal. Ever since the Olympics of 1988, Calgarians suffered from a huge Edmonton envy. It's time to put this to bed and get a structure deserving of the name — Calgary Event Centre..Marcel Latouche is former president & CEO of The Institute for Public Sector Accountability
