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Posted Dec 1, 2014, 5:32 PM
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Registered User
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Join Date: May 2007
Posts: 11,598
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Quote:
Originally Posted by fusili
Fair. In their current location, do you know if they pay full commercial tax mill rate?
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Edit due to research: I don't think they pay property taxes for the Saddledome, besides the provincial portion. It is a complicated deal, with money flowing back and forth.
All from the Calgary Herald:
What I can find from 1994:
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TERMS OF THE DEALS
* $12 million in national infrastructure money from the city, province and federal government to go to renovations of the 'Dome, including luxury private boxes. The Saddledome Foundation pays the city's $4 million share.
* Flames and Foundation split the cost of 41 luxury boxes and more than 1,000 club seats.
* Flames pay the Stampede Board $20 million to get out of existing lease, which expires in 2002. The Flames then assume full management rights to the Saddledome.
* The Stampede Board agrees to use the $20 million to pay down its $34 million debt.
* The Flames now get revenue from areas such as parking and concessions.
* Flames also agree to contribute $14.5 million to amateur sport over the duration of the new 20-year lease.
* A ticket surcharge to help pay the municipal portion of the education levy has been talked about, but the Flames would prefer not to do it. As of now, there are no plans for surcharges in Calgary.
* Seating capacity: 20,230
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and
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The Saddledome, and other publicly-owned facilities, had previously been exempt from the education portion of property taxes until a change was made to the Municipal Government Act in June.
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The last point is that when a city asset is leased, the city is forced to pay the education property tax portion of the tax as a levy compared to the value of the lease.
From 2000:
Quote:
algary aldermen say the Flames are an important city tenant and they're willing to at least listen to changes team owners will seek in their arena agreement.
As reported in Saturday's Herald, team owners are looking for an agreement similar to the Edmonton Oilers' deal with the Skyreach Centre, which Flames governor Harley Hotchkiss said is up to $5 million less a year than his team's agreement with the Saddledome.
Hotchkiss pointed out the Oilers benefit from $1.3 million in lottery funding, pay $200,000 less in provincial education tax and are not responsible for building operations.
Six years ago, the Flames demanded and received control of Saddledome operations, including maintenance and capital improvement in the arena, in return for all revenues from renting out the facilities.
That agreement lasts until 2014.
The Flames are now talking to the Saddledome Foundation, a non- profit group that acts as leaseholder for the city-owned facility, about changing their arrangement.
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2001:
Quote:
The Saddledome Foundation stickhandled its way Monday into an annual $1.3 million in funding after convincing city council to transfer capital maintenance costs from the Calgary Flames to taxpayers.
But the deal didn't pass without heated discussion, with one alderman calling it a "bailout."
Changes to the licence and management agreement between the foundation and the team were approved 9-5 following hours of debate by aldermen and a passionate speech by Mayor Al Duerr, who pleaded with his colleagues to deal with the issue from a fiscal point of view -- not an emotional one.
The agreement doesn't guarantee the National Hockey League team will remain in Calgary. It passes the issue back to the province, which has turned down a matching $1.3 million request from the Saddledome Foundation to cover operational costs that were previously the responsibility of the Flames.
That request is over and above the $1 million the Alberta government pledged to the team last week as part of a lottery program, said a Flames official.
"It's not for me to say," Michael Holditch, Flames vice- president of finance, said when asked if the new lease agreement secures the hockey team's future in Calgary.
"That's not to say we're not grateful. This is an encouraging sign."
The foundation, which will need to have its capital budget approved annually, first asked the city last week to approve changes to the lease agreement and relieve the Flames of their capital maintenance responsibilities.
The money will help offset a $3.9-million deficit the team incurs on the building each year. An additional $1.3 million will come from a surcharge on hockey and other event tickets and it's hoped the rest will come from the province.
The foundation presented a report Monday showing the money will go this year to expenses such as roof repairs, wiring upgrades and stairwell restoration.
However, the report did not provide a breakdown of where the dollars will be spent over the next five years, a point that troubled at least one alderman.
"I said last week -- and I'll say it again today -- we're not being asked for $1.3 million, we're being asked for $6.5 million over a five-year program," said Ald. Dave Bronconnier, adding that, like any other business, it should be up to the Flames to deal with their financial problems on their own.
Bronconnier said he is tired of threats the Flames will leave town.
"I'll be damned if I'll sit here and be brow-beaten," added Ald. John Schmal.
"It's a bailout and all I hear is the threat if you don't cough up, we might leave," said Schmal, adding this opens the door for the city's other lease agreements, as well as additional requests by the foundation.
"The team can come back in another two years and ask for an adjustment, and any other business can now come forward and ask for compensation."
However, other aldermen, including Joanne Kerr, argued the city has an obligation to maintain the Saddledome like it does any other city-owned facility, including the convention centre and Performing Arts Centre. Kerr pointed out the millions of dollars the city spent on the Max Bell Arena after former Stampeders owner Larry Ryckman reneged on promises to make structural upgrades.
"This is not an attempt by the City of Calgary to bail out the Flames," said Kerr. "The Flames haven't asked us for a nickel."
She pointed out the city would lose $250,000 in tax revenues and the $750,000 the team puts back into amateur sport, while Stampede Park would lose thousands more in parking revenue if its largest Saddledome tenant is lost.
Yet another alderman argued the city has no legal recourse if the team pulls up stakes and breaks its lease.
City lawyers say a loophole in the original deal allows the Flames to break the contract without penalty because of changes the province made to the Municipal Government Act as it relates to the payment of education taxes.
The changes were made after the agreement was signed.
Saddledome Foundation chairman Rick Smith said Monday's decision sends a message to the Flames that Calgarians are grateful to have an NHL franchise and recognize the difficulties they experience in operating a team in this market.
"We (the city) own the building and I think it sends a message that we are interested in maintaining that building at a world- class level," said Smith, adding he's unsure whether the deal will keep the team in Calgary.
"This is just one piece to a big puzzle, and it's all we could do as custodians of the building. But certainly I think it does go a long way to show we as a city support having a major tenant in the building."
A clawback provision was also approved as part of the "temporary" changes to the lease agreement that will see 20 per cent of any profits from Saddledome operations given to the city.
The changes are also contingent on an Aug. 1 deadline on the conclusion of funding arrangements between the Flames and the province.
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Last edited by MalcolmTucker; Dec 1, 2014 at 6:00 PM.
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