Comment 69049

By RenaissanceWatcher (registered) | Posted September 04, 2011 at 20:19:53

Unfortunately, the city staff report on the velodrome is no longer available online via the Agenda from the Special GIC meeting on Aug 29/11: http://www.hamilton.ca/CityDepartments/C...

However, the report was available online for a brief period of time early last week. In the report, city staff did recommend making it a condition to proceed with the velodrome only if the city receives a minimum of $500,000.00 per year from the Pan Am Legacy Fund.

At the Special GIC meeting on Aug 29/11, Toronto 2015 CEO Ian Troop said that $500,000.00 per year from the Pan Am Legacy Fund cannot be guaranteed to the city for the velodrome. It could happen, but it cannot be guaranteed.

Mr. Troop said that $70 Million will be invested in the Pan Am Legacy Fund after the Games have ended and the annual interest, minus administration costs, will be divided between the York University athletics stadium, the aquatics centre, and the velodrome.

Mr. Troop did not say that the payments would be divided equally between the three facilities.

Example "A"- Let's suppose that it is divided equally. If the $70 Million is invested at interest rate of 2.3% per year, it would generate $1.61 Million interest per year. This would garner each of the three facilities $500,000.00 per year after deducting an estimated fund administration cost of $110,000.00 per year.

Example "B"- An interest rate of 2.14% would only generate $1.498 Million per year, an insufficient amount to pay $500,000.00 to each facility and whatever the actual administration cost turns out to be.

Toronto 2015 cannot guarantee that a bank will pay at least 2.3% annual interest into the Pan Am Legacy Fund in perpetuity. City staff is therefore recommending a condition that Toronto 2015 cannot guarantee.

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