Province takes $56M Loss in Stadium Deal

[Rich]

To be clear, this has nothing to do with the Bombers financial obligations to pay off the loan.  This is the financing deal the government put in place to build the stadium.   The province was supposed to realize a bunch of tax revenue from the development of the old CanadInns stadium grounds that would pay part of the financing to build the stadium.   Due to lack of development and the Target building sitting vacant, the government has decided to take a $56M loss as they see no way of recouping the income it was supposed to generate.

http://www.cbc.ca/beta/news/canada/manitoba/stadium-loan-writedown-province-1.4299473

Quote

The province has placed a $56-million loss provision on the largest of the loans that helped build Investors Group Field, Finance Minister Cameron Friesen said the day after his Progressive Conservative government published Manitoba's annual financial statements.

Those statements include two references to a provision on the loan that covered $160 million of the initial cost of building Investors Group Field, the 33,214-seat football stadium that opened on the University of Manitoba's Fort Garry campus in 2013.

Under the terms of the deal to build the stadium, the non-profit Winnipeg Football Club is responsible for paying back $85 million of that loan by 2058, plus interest. To date, the Winnipeg Blue Bombers have met their financial obligations.

The remaining $75 million, plus interest, was supposed to be covered by municipal and provincial property taxes generated by the former Canad Inns Stadium site at Polo Park, which was sold to a partnership between Shindico Realty and Cadillac Fairview.

Thus far, the only new development on that plot of land is a now-empty former Target store. Over the past four years, the old stadium site has generated a total of $3 million in property tax revenue, according to figures provided by the City of Winnipeg.

The former stadium site was supposed to generate $7 million of property tax revenue a year once it was built out completely, Friesen said.

...

Friesen said the party responsible for the loan loss provision is neither the developer nor the Winnipeg Football Club, but officials in Greg Selinger's former NDP government, who put together the stadium-building deal.

 

Don't think this is a big surprise to anyone.  The government did what it had to to get the stadium built.  Now that there is a new government in power,  the get the blame the old government.

[Goalie]

Yup. No surprise. My way of looking at it... 

The province puts and has put so much money in to such meaningless pointless totally stupid things that the majority of people dont use such as welfare and things of that nature that a 56 million "loss" for a stadium is really just peanuts. Anyone who disagrees need to pull their head out of the sand and open their eyes to the crazy amount of wasteful spending going on Daily. 

Edited September 21, 2017 by Goalie

[Goalie]

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Edited September 21, 2017 by Goalie
Why bother

[WBBFanWest]

Just now, Goalie said:

Really i get a disagree for speaking the truth lol. Yup lets keep handing out free money to those who don't deserve it. 

Opinion isn't truth and being someone that works with the marginalized, it saddens me to see comments like yours.  

[Goalie]

6 minutes ago, WBBFanWest said:

Opinion isn't truth and being someone that works with the marginalized, it saddens me to see comments like yours.  

Lol. I said and things of that nature.. 

That was 1 example of many. 

Opinion isnt truth but when its the truth it is. 

There are lots of ppl who take advatage of certain things.. Welfare is just 1 of many examples.. Mb housing is another. There are others but those 2 are huge on the list of wasted money. 

Edited September 21, 2017 by Goalie

[mbrg]

36 minutes ago, Rich said:

To be clear, this has nothing to do with the Bombers financial obligations to pay off the loan.  This is the financing deal the government put in place to build the stadium.   The province was supposed to realize a bunch of tax revenue from the development of the old CanadInns stadium grounds that would pay part of the financing to build the stadium.   Due to lack of development and the Target building sitting vacant, the government has decided to take a $56M loss as they see no way of recouping the income it was supposed to generate.

http://www.cbc.ca/beta/news/canada/manitoba/stadium-loan-writedown-province-1.4299473

Don't think this is a big surprise to anyone.  The government did what it had to to get the stadium built.  Now that there is a new government in power,  the get the blame the old government.

Of course, that's the nature of the game.  But the land is really vacant, not just politically vacant, so ... whatever.  Politics suck.  Let's go get pancakes.

[blue_gold_84]

It's a bloody shame the development at the old stadium lands has amounted to absolutely nothing save an empty Target store.

Although, it's no surprise when you consider the sheer ineptitude of the former provincial gov't.

[mbrg]

Oh, and there is no doubt that this will be continually re-shaped and misunderstood as a failure on the part of the Bombers.

[Goalie]

2 minutes ago, blue_gold_84 said:

It's a bloody shame the development at the old stadium lands has amounted to absolutely nothing save an empty Target store.

Although, it's no surprise when you consider the sheer ineptitude of the former provincial gov't.

Yeah. The current one taking away health care services are proving to be so much better. Both are inept. 

Edited September 21, 2017 by Goalie

[voodoochylde]

1 minute ago, mbrg said:

Oh, and there is no doubt that this will be continually re-shaped and misunderstood as a failure on the part of the Bombers.

Queuing Wiceck and Friesen in 4 .. 3 .. 2 .. 

[Brandon]

Would be a good location for a large indoor waterpark....

[blue_gold_84]

4 minutes ago, Goalie said:

Yeah. The current one taking away health care services are proving to be so much better. Both are inept. 

Yeah, I wasn't defending the current gov't at all. In fact, I didn't even mention the current gov't... You know, because it's irrelevant to this discussion.

This is a discussion about the losses the province has incurred due to the ineptitude of the former gov't. It wasn't meant to stir up a vs. debate on who's more inept.

[SPuDS]

13 minutes ago, Brandon said:

Would be a good location for a large indoor waterpark....

I laughed because its been such a great idea thats been crushed over and over again... I honestly would love to see this come to fruition but I can't see it.  I don't understand why not, I thought even cadillac fairview was on board with a hotel, water park combo and it still fell thru..

 

but a water park/indoor amusement centre would be a real smart concept in a city that only gets 3 months of summer on a good year.. it would be bumping all year long AND be a tourism boon as well.. it makes so much sense.. this is why it doesn't happen me thinks lol.

[Noeller]

46 minutes ago, voodoochylde said:

Queuing Wiceck and Friesen in 4 .. 3 .. 2 .. 

When I read Rich's OP, I cringed thinking about Broadbeck......

[Goalie]

6 minutes ago, Noeller said:

When I read Rich's OP, I cringed thinking about Broadbeck......

Hes a cbc tv guy now or.. No thats the other guy.. Crap. 

Edited September 21, 2017 by Goalie

[Noeller]

3 minutes ago, Goalie said:

Hes a cbc tv guy now or.. No thats the other guy.. Crap. 

lol....Kives......went to CBC.....

[Goalie]

Just now, Noeller said:

lol....Kives......went to CBC.....

Yeah.. Broadbeck is the annoying one. 

[Super Duper Negatron]

1 hour ago, Brandon said:

Would be a good location for a large indoor waterpark....

The Winnipeg equivalent:

[Super Duper Negatron]

Is there a chance the slides could bend?

Not on your life, my Transcona friend!

[Atomic]

WTF is with Winnipeg and waterparks.

[Brandon]

1 hour ago, SPuDS said:

I laughed because its been such a great idea thats been crushed over and over again... I honestly would love to see this come to fruition but I can't see it.  I don't understand why not, I thought even cadillac fairview was on board with a hotel, water park combo and it still fell thru..

but a water park/indoor amusement centre would be a real smart concept in a city that only gets 3 months of summer on a good year.. it would be bumping all year long AND be a tourism boon as well.. it makes so much sense.. this is why it doesn't happen me thinks lol.

Before I used to roll my eyes at the idea....   last month we took our two little ones to a mini trip down South and went to 3 hotels with water parks.    Mid week in late August these places were jam packed from afternoon till close.   Many of the people were locals attending as well.     They could easily generate a tonne of cash with a decent park.    

In winter parents are desperate to unleash the kids somewhere to burn energy,  places like Kid City are swamped with kids running around.  I can see an indoor park doing very well.  

[Super Duper Negatron]

1 minute ago, Atomic said:

WTF is with Winnipeg and waterparks.

Waterparks are fun, especially if you have kids and need to entertain them.

Waterparks don't work well outdoors in the winter.

Winnipeg has long ass winters.

Therefore: indoor waterpark. Quite simple!

[kelownabomberfan]

11 minutes ago, Super Duper Negatron said:

The Winnipeg equivalent:

This waterpark sounds more like a Shelbyville kind of idea.

[17to85]

9 minutes ago, Super Duper Negatron said:

Is there a chance the slides could bend?

Not on your life, my Transcona friend!

but what about us brain dead slobs?

[kelownabomberfan]

3 minutes ago, Brandon said:

Before I used to roll my eyes at the idea....   last month we took our two little ones to a mini trip down South and went to 3 hotels with water parks.    Mid week in late August these places were jam packed from afternoon till close.   Many of the people were locals attending as well.     They could easily generate a tonne of cash with a decent park.    

In winter parents are desperate to unleash the kids somewhere to burn energy,  places like Kid City are swamped with kids running around.  I can see an indoor park doing very well.  

The H20 center here in Kelowna is a huge hit, and is used extensively.  Also anyone ever been to West Edmonton Mall?  That waterpark has been going for decades.  I've never been but all my family members and friends who have been there love that waterpark.  Winnipeg could definitely use something like that.