I’m stunned and speechless.
The province has decided it has enough money to fund a $90 million loan for the Stadium because Asper doesn’t have the money right now:
The province says it’s just a loan and that taxpayers are not on the hook. If Asper can’t pay it back, then it gets covered by tax revenues from the current stadium property.
This deal is wrong on so many levels. And like I have stated before, Selinger is a liar.
I’m all for a new stadium, but this is unbelievable.
First, the province says it’s just a loan. Wow, how soon they forget. The province announced a $545 M deficit for 2010-2011. That means they have to borrow money to provide core services. Where are they going to get the $90 Million from? That’s right, they have to borrow it.
So now, just over a week later our deficit is now $90 MILLION More. At that rate it will be a $4.8 Billion deficit by the end of the year!!!
Oh, well that’s not right, it’s just a loan. The province is borrowing money so that it can lend it to the Bombers who will in turn lend it to Asper who will lend it back to the Bombers. Hmmmm…sounds like money laundering to me – bets on how long before it disappears?
But…. Asper pays it back from revenues from Elms project. That’s planned for where the current stadium is. The new one is up and running in 2012. So development of the Elms can’t start before then. If you take into account that they need to demolish the old stadium, what – 2 years before Elms is up and running? That’s 2014.
$90 Million @ 5.5 % compounded monthly for 4 years – $21.5 million in interest to that point. Another $6 Million if he starts paying it back right away. If he waits until the end of 2016, $34 MILLION in accrued interest!
That’s if he can get the Elms up and running. What if he defaults? Well, the city has said that property taxes at the elms development would cover the loan.
This is wrong for so many reasons.
Asper hasn’t been able to get enough interest so far, why would we think he can get more by then?
What if the development is such that it doesn’t generate enough propery tax to cover the payments?
What if Asper defaults? Who is going to cover all that accrued interest? The city? Not likely. But hey, Selinger says we’ll be balanced so we’ll be able to afford it right?
And what happens in the worse case scenario? That Asper can’t even get the elms project off the ground. The city needs development to earn property taxes to pay back the loan. But who pays to demolish the stadium? Who pays to develop the site? The city? The province? All those developers lining up at the door to develop the old arena site ( it’s been how long now?)
This deal is awful – stinks, stinks, stinks. And I still haven’t touched on how new tax revenues should perhaps be used to address the city’s infrastructure deficit instead of guaranteeing a loan that the province took out.
Corporate Welfare – Yup, our NDP does it
Trying to buy votes – Our NDP is an expert at that
Who cares about the province and the future as long as you’re the government.
Oh…and if the NHL rumors have any basis, anyone wanna hazard a guess about the prospective ownership group looking for money from the province considering they are giving this to Asper? And it won’t be just $90 Million in that case.
I’d love to see a new stadium. But there is no way this isn’t costing taxpayers in the end.