Comment 54731

By Jonathan Dalton (registered) | Posted January 06, 2011 at 10:32:44

Ok, now we really have to see the numbers for a 6000 seater. If Burlington can get 22,000 seats for $0 (which is probably BS) how many seats can we get for that amount?

I wouldn't take the Paletta offer at face value. There are so many assumptions here, such as:

-$90-120 million price tag: Has that been thoroughly calculated? It's funny how costs tend to go up from the original estimates, as we discovered with how many, 3 alternative sites now?

-$70-100 million Hostco contribution: This sounds ridiculously inflated. Their contribution to Hamilton for the stadium was $55M if I recall correctly. Has any additional funding even been requested by this new consortium? Don't forget, it's not Hostco's prerogative to take care of the Tiger Cats. Their original funding was for 15,000 seats, and since moving track and field they only need to pay for 6000. They aren't looking for reasons to spend more money.

-Seating capacity: We were told 25,000, 35,000, even up to 45,000 to satisfy the CFL. How long with the Ticats be satisfied with 22,000? Who will pay for the inevitable expansion?

-Infrastructure costs: It's not enough to say to Burlington 'So what, you'll have to pay those anyway'. Paying now versus paying later is a real tangible cost, as we discovered in the East Mountain financial analysis. Furthermore what infrastructure is required?

-Future development: The justification for Burlington to accept the risk of the stadium. Burlington makes money from development charges and increased taxes. What if a stadium close to nothing used 10 times a year isn't exactly the catalyst it was hoped to be?

The deal for Burlington always looked too good to be true, and it probably is. Cities and sports teams alike are often in the business of losing money; land developers are not. Paletta would not enter into any agreement without knowing he will come out on top, and the outcome of any uncertainties will certainly be borne by the city of Burlington and / or the Ticats.

Comment edited by Jonathan Dalton on 2011-01-06 10:33:53

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