Quote:
Originally Posted by fenwick16
I think that 25% of the cost should come from private contributions (I won't call it an investment since it is just too risky). The government can recover much of the cost through PST and GST (or HST) whereas a private investor has no way of getting this benefit. I think that the total cost should not exceed $80 million for a complete stadium (including land cost). However, it could be a phased approach whereby the first phase might only be $40 million dollars which could be expanded when necessary.
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I am not sure what you mean by "a private investor has no way of getting this benefit"?
It is risky indeed, but risky for all parties including governments. That nice windfall in tax revenues really only emerges if this is successful.
Yes an investor does not get the tax revenue, they get the profits! A private investor will only do this if there is a fair business case to be made. So, either there is a fair business case, at which point they will get their profit and the government gets the increased taxes and everyone is happy, or there is no business case at which point we are asking tax revenue to absorb a net loss and I certainly don't get the sense that that is going to happen in this climate.
I am not trying to be difficult or a pessimist. It is just a reality to me that this needs to be lead by a strong private ownership group with a strong business case, or it goes no where. It can't just be a case of build it and they will come (i.e. have the government build it and hope that an group comes forward and eventually signs a lease agreement). There is a void of political leadership in this region who are responsible for the failure of this happening, but I would argue that there has also been a failure of business leadership who have also demonstrated apathy towards projects like this.