Quote:
Originally Posted by elly63
Bit of a stretch comparing the 136 year old, highest attended franchise in one of the richest leagues, in one of the world's largest cities vs a potential Halifax CFL franchise. But stretching credulity is what ol' Colin's all about.
|
Mr LeBlanc and his acolytes are stretching credulity.
Here is the situation,the fiscal reality,the facts that the Mayor,Mr Dube and certain councillors don't want to lay before you and others who want a stadium.
- It’s dead.
HRM will not increase its liabilities by $170 million. LeBlanc and his fellow ‘investors’ won’t be able to borrow $170,000,000 because a stadium is not security for a $170,000,000 loan.
A bank will want HRM or the province to guarantee a loan because the investors won’t guarantee a loan. Any loan guarantee ends up on the balance sheet as a liability.
Here is Dube as quoted in the Herald : ” Dube said Tuesday that the financing arrangement proposed would not leave the municipality at risk.
“We are not looking to take construction risks, we are not looking to take financial risks on the project,” Dube said. “We are not looking to own the stadium.”
Dube said the municipality does not intend to maintain the stadium, either. “
Here is what I posted at the halifaxexaminer :
Consider the financial context of the stadium. HRM has $180,000,000 of long term debt and another $58,200,000 liability for future Long Service Awards to employees.
The council will not vote for any deal that requires HRM to backstop/guarantee the repayment of the cost of construction of a stadium.
And the provincial accounting regulations would require disclosure of any such guarantee. And the province through the Minister of Municipal Affairs would have to approve any such agreement.
Not going to happen.
There will be no deal.