More information from Reddit on the Brandt proposal. There are a few more hidden costs (i.e. subsidies to Brandt) than the media has so far reported.
- After the $6.5 million sale goes through, taxpayers will be required to pay Brandt $9 million over he next two years for an “operational cost adjustment”
- the City leases two major properties to Brandt for the company to operate for at least 50 years (and up to 99), for which Brandt will pay the City a dollar a year; in exchange the City will provide $550,000 for a “fixed capital maintenance reserve fee.” Except that fee isn’t fixed, it will go up at least 2% every year, so after 50 years we’ll be paying them over $1.3 million in a year and a total of over $28 million after 50 years. Just for maintenance. Those buildings will surely be sparkling.
- The report seems to suggest the City would be required to pay up to $2 million in costs for a new entrance to the property from Sask Drive if Brandt decides they want one. Why anyone would want to put another intersection at Sask Drive is another question all together. I guess them Semple boys really love waiting on trains?
- It also seems to suggest that, when Brandt gets full use of the stadium for up to two events a year (for which they get to retain all the money from food and beverage sales), the City must pay costs for police, transportation plan management, fire, and bylaw enforcement services.
- The City has to pay costs for subdivision of the sale lands and any costs associated with changes to the OCP and zoning bylaw.
- The City is also on the hook for potential severance for every REAL employee let go in the two years after sale. Considering Brandt will be operating almost the entire property and its sole remit is to attract and execute events, it doesn’t seem likely REAL will need to exist. So what will it cost to pay severance for the 50 or so people that work there? Probably a bunch?
I think I am opposed to this deal (not that it matters, because the city is going to rubberstamp it). If Brandt truly wanted to just buy the land, then okay, let them buy some of the most central land in the city at market value. But that's not what this is, it's a corporate subsidy to ensure that Brandt can operate events and make money while the taxpayer has to subsidize the events. Also, say goodbye to hundreds of unionized, okay-paying jobs (and say hello to fewer, crappy jobs at Brandt, one of the worst employers in the city).
This isn't a defense of REAL...but exchanging REAL for Brandt is like a devil's deal.
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