Updated throughout the day with quick takes from staff.
Earlier today, Research In Motion founder and co-CEO Jim Balsillie fired another shot in the media war to move the Phoenix Coyotes to Southern Ontario, when he unveiled his plans to renovate Copps Coliseum, the venue that would become the home of the Coyotes if and when Balsillie gained control of the team.
Beside plenty of pretty pictures of the sort we're used to seeing when team owners come to local governments asking for public funds to build new arenas, Balsillie also reminded everyone of the established price tag on the renovations first estimated in 2007: $150 million. That means adjusting for inflation from then to whenever the project begins. And as the release reminds us: "The estimate could vary significantly based on timelines, approvals and access to the facility for construction purposes."
Which of course means it's going to cost a whole lot more.
In general, I'm not opposed to public financing of stadiums and arenas. What I am annoyed about is when such projects are touted as engines of economic development, when just about every legitimate study on the subject has concluded that just isn't the case. What we all need to do is look at these sorts of projects as what they actually are: luxuries. And like any luxury, that means casting a cold eye on the question as to whether or not your local government can actually afford the expenditure.
In Hamilton, I'm sure the locals are going to clamber on board, and given the support a team could expect in hockey-mad Southern Ontario, I don't doubt that it will be a roaring success. But when you see local governments hesitate when it comes to fronting the cash for a new development, know that it's because times are tight, and promises to be that way for quite some time to come.
This post originally appeared on the Sporting Blog. For more, see The Sporting Blog Archives.
4 comments
Comments
this is, of course, purely hypothetical… Balsillie ain’t getting the Coyotes, and even if he does by some miracle, they aren’t moving anywhere without a league vote.
I’m sure Hamilton city council will greenlight any request for money, probably instituting some sort of entertainment tax… it would mean too much for the city, whether for financial reason or simply for the city’s image
however, there’s no way they would finance the whole project… it would be too much of a financial burden for too small of a city
so the provincial government would have to step in… but funding would not be justifiable/possible right now… it would be a HORRIBLE PR move, seeing that Ontario is being hit hard by the auto-makers leaving en masse and the recession as a whole…
even if the economy wasn’t down, it would be a tough sell
by msgg139 on May 29, 2009 2:33 PM EDT reply actions
eff the public money. if he buys the team then he is volunteering to pay for a stadium too. this billionairre should build a stadium in waterloo not hamilton. he will make money by the wheelbarrow load and can pay for it from his profits.
by scurds on May 31, 2009 2:19 PM EDT reply actions
Should Balsillie somehow finally be able to get a team and then move it to Ontario, I think it would really be worth the effort to fund the renovation, at least partially. Think of it as a long term investment. It might not pay itself back financially in quite a few years, but a major sports team like this would be something every city dreams of.
by Jesuli11 on Jun 1, 2009 3:50 AM EDT reply actions
Regardless of the FACTS omitted from this story, Basillie does not own Copps Colisseum. He is a perspective tenant and as such it would not be at all realistic to imagine him building Hamilton a state-of-the-art arena out of the kindness of his heart. Fact is that basillie would have to negotiate what % of income from tickets he would receive and how much it will cost him to lease the arena before it would be logical to make any feduciary estimate/promises.
Look at it this way….
If you rent an apartment do they expect you to spend the money to clean and paint it upon moving in? Or is that covered by the entity that actually owns the asset?….
On top of that the city will make millions in taxes, millions from parking, and have a building worth several million dollars more than it currently is to attract top flight performing artists and perhaps even build an Olypic bid with Toronto.
Please in the future do some research before writing a piece like this…
And referencing the studies that suggest spending on an arena is bad business would make it more plausible that you aren’t just ignorant of said studies. In fact making such a broad generalized statement is foolhardy considering that this is the exception to that rule, this is a RENOVATION TO MEET EXISTING NHL STANDARDS which means that without it they would;
A-Build a new arena at several times the cost (while, just as they will during renovations, employing thousands of canadians in various sectors)
B-Not get an NHL team and forfeit hundreds of millions of dollars in taxes and hundreds of jobs at various levels.
by a-roid on Jun 1, 2009 4:50 PM EDT reply actions
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