: News Article:
New Arena deal agreed to by city and Katz group:mod warning #616
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05-10-2013, 02:38 PM
Join Date: Nov 2006
Originally Posted by
Katz is not investing 100 million into this project
Go to your banker and ask to borrow money for a commercial building and when he asks you what your equity involvement will be, tell him it will come from repayment of the loan via cashflow you earn from the new building. Circle back and tell me how hard he laughs at you.
Katz has zero interest in using any of his own money for this venture, hell he borrowed a substantial part of the purchase price from CTI.
I have no issue with this but please don't sell me garbage and tell me its a steak
And as any economist worth his salt wil ltell you, the notion that increased tax revenues from a new buidling will in essence fund the said building is a story built on sand. Any increase in tax revenue will come from A) an adjustment in assessment value that is controlled by the city (commonly referred to as a tax increase) B) at the expense of other areas of the city that will likely see a loss of property value.
Again I'm not anti-arena but I am anti-being treated like a a$$h***. CRL and long term payback of arena funds via hockey revenue are just fancy ways of saying this building will be substantially paid for by tax payers and will be done so via tax increases in Edmonton
Katz Funding: $146.5M
City Funding: $219M
Originally Posted by
What sheer and utter nonsense. How some people actually buy into the baloney of Katz being some benevolent prince on a white horse that is only through his generosity keeping a team here is just laughable. $145 million? LOL bargain of the century for an NHL team. $100 million investment? As in over the life of the project as in paying a few million a year on a project where he will be RAKING in huge dollars.
All of the benefits for Katz are based on pretty sound projections of revenue from past arena revenue and oiler ticket sales. All the benefits to the whole city of Edmonton are based on some nebulous optimistic projections and oft disproven theories that a hockey arena brings in tons of benefits for a city.
No white knight thinking here, just the facts. It's a joint project that benefits the entire city. Please don't forget to visit
so you can stop assuming Katz is not contributing to the project and the city is funding the entire thing. Being educated and informed on the matter can do wonders.
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