https://www.cbc.ca/news/canada/saskatche...mple-brandt-agribition-grounds-9.7176317
The REAL deal: Shaun Semple to purchase large portion of Regina's agribition grounds for $6.4M
Proposal will be taken to executive committee April 29 and, if it passes, city council on May 6
Sarah Onyango, Alexander Quon · CBC News ·
Clauses included in the proposed deal mean the buildings to be purchased by Brandt will be exempt from property taxes for five years.
After those five years, if future tax exemptions are not approved by city council and Brandt continues to operate the campus, the city will provide an operating grant equal to the taxes imposed on the purchased buildings.
Brandt will also have the right of first refusal to buy the buildings retained by the City of Regina, if the city looks to sell or dispose of them in the future. This right of first refusal does not apply to Mosaic Stadium.
There is also an exclusivity agreement that will run for a period of 20 years. It says that if a new stadium or arena is built in the city to replace the Brandt Centre and Brandt is not granted the opportunity to participate in the ownership of the new building, then Brandt "may" sell the purchased building back to the city based on the depreciated value.
How was purchase price decided?
Under the deal, Brandt would pay the city $6.4 million for the collection of nine assets, which it says have an average age of 45 years.
The Brandt Centre alone was built in 1977 for a cost of $7.7 million.
Anderson said the purchase price was a complex decision and that the city engaged expert, accredited professionals to determine a range of market values.
He said Brandt purchased at the top of that range.
As for what this might mean for a new arena project down the road, Anderson said this “doesn’t impact anything around a new arena.”
“I would say there’s nothing going on about a new arena right now, but this would not impact that. There is a clause in here where if the city decided to do a new arena that would directly compete with the Brandt Centre and Brandt wasn’t involved, we would then have to purchase the Brandt Centre back. Obviously it’s a unique asset that cities don’t have two arenas so they need to protect that. If they’re going to put significant investment into this building, they want to make sure that the city doesn’t swoop in and create a new spot but it doesn’t impact the new stuff at all.”
The next steps are FOR the report on the proposed deal to go to Executive Committee on Wednesday, April 29 and then to City Council on May 6. The city says this will allow two opportunities for the public to provide comment prior to council making its decision.
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