Quote:
Originally Posted by steveosnyder
http://www.winnipegfreepress.com/loc...306526511.html
City worried about Convention Centre Expansion paying back it's loan... The best quote from the whole thing is this one:
Bob Silver must really have his head in the sand... Conventions have been a dying model for a while, just ask some of the large American cities that funded large convention centres.
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Bob Silver could only charitably be described as having even a passive involvement with the Convention Center. This is very easily ascribed to toeing the party line.
The question is which financial institution is going to agree to having payments suspended on a loan for tens of millions of dollars that's underwriting an institution of which the board is openly acknowledging has virtually no hope of meeting its repayment obligations. The answer is that there isn't one.
I thought for sure the Convention Center needed at least a couple years to hang the threat of default over the administration's head. It didn't even take until the end of construction.
ETA: I mentioned this last week and now the city is effectively copping to it in its report. It's looking more and more like the TIF revenue from 220 Carlton that was supposed to repay the $17MM from the city is now going to be heading into the hands of True North. In other words, the true cost of the land at 220 Carlton to the city is not just the $7MM+ to acquire and demolish it, but another $17MM in financing that was supposed to be serviced through its taxable capacity. Go Jets Go.