The Mayor is quoted as saying that for an investment of only 6% of the overall cost of $190 million, Winnipegers are getting a new stadium.
That 6% is made up of 10 million dollars in outright grants from the city, and 1.6 million dollars in new infrastructure requirements at the new stadium site.
That’s 11.6 million dollars.
A further 1.1 million dollars in the form of ‘in kind’ services for building and development permit fees is thrown in as a freebie.
The Mayor is right. If the $1.1 million in in-kind services is ignored, the $11.6 million works out to approximately 6 % of the overall 190 million dollar estimated cost of the new stadium.
Now if that were the real cost to Winnipeg tax-payer, that would be a good deal.
However, the Mayor (as he frequently does) is telling only a portion of the story.
The City is on the hook for a further 75- 85 million dollars (depending on which numbers you look at) which will be repaid using tax dollars generated through the Tax Increment Financing scheme once the site of the current Winnipeg Stadium is sold and redeveloped.
Because this is new money, the mayor has conveniently chosen to ignore it. If this additional money (cost) is factored into the City’s contribution to the stadium project, the total cost to Winnipeg tax payers is in the range of 87 million dollars.
That ups the City’s percentage contribution to the project from 6% to 46%.
In the words of Brian Kelcey, a former advisor to Mayor Katz, the mayor and councilors need to remember that:
“Just because it’s new money, doesn’t mean it isn’t real money”
Taking into account the true cost to Winnipeg tax payers, is this still a great deal?