Blue Bombers' new home to enjoy same tax breaks

The Winnipeg Blue Bombers' new home will get the same property-tax break enjoyed by the football club for the past nine years at Canad Inns Stadium, thanks to new provincial legislation.

A budget-implementation bill heading through the Manitoba legislature today includes a provision to allow the Winnipeg Football Club's future home at the University of Manitoba to be exempt from municipal property taxes, except for retail stores and restaurants that will operate all year within the new stadium.

Since 2000, when the city, province and the former Winnipeg Enterprises Corp. oversaw a bailout plan for the then-struggling Canadian Football League club, Winnipeg has waived the team's property-tax bill at what's now called Canad Inns Stadium.

The club's new home at the U of M, which will be built by future ball club owner David Asper's Creswin Properties but owned by a new non-profit corporation called the Winnipeg Football Club Stakeholders, will receive the same tax exemption, which is one of the city's main contributions to the $135-million project supported by $20 million from the province and $15 million from Ottawa.

While Winnipeg is not contributing any cash to the stadium or the associated improvements to the U of M's athletic amenities, the city plans to sell Creswin the valuable commercial land at the existing Canad Inns site at full market value. Creswin will then use proceeds from its future development at Polo Park to finance the Winnipeg Football Club's operations.

Mayor Sam Katz has always been adamant the Bombers' new stadium would not receive a penny more from the city, given the fact the club has enjoyed a tax holiday, concession and parking revenue and proceeds from entertainment taxes at Canad Inns Stadium for almost a decade.

As a result, the budget bill heading through the legislature amounts to housekeeping, provincial Finance Minister Greg Selinger suggested Wednesday.

"The stadium, I think, is perceived as an asset that benefits all Manitoba by building it," Selinger said.

Despite the city's long-held position, which predates the selection of the University of Manitoba as the stadium site, the Canadian Taxpayers Federation contends the tax break for the new stadium was not sufficiently publicized. Manitoba director Colin Craig criticized all three levels of government on Wednesday for not being more clear about the property-tax exemption when federal and provincial funding for the stadium project was confirmed in April.

Construction on the new stadium may begin this fall, when Creswin hopes to begin clearing land at the northwest corner of Chancellor Matheson Road and University Crescent. Creswin is also in the midst of lease negotiations for the future commercial development at Polo Park, whose success or failure will determine the viability of the entire stadium project.

"Things are progressing very positively at the Polo Park site," said Creswin spokeswoman Barb Biggar, adding the identity of the tenants will not be revealed until leases are signed.

The retail stores at the new stadium will include a Bomber and Bison store, as well as restaurants, she added.

bartley.kives@freepress.mb.ca matt.preprost@freepress.mb.ca

The stadium file

EVERYTHING you wanted to know about the Bombers' future home...

Cost: $135 million

Developer: David Asper's Creswin Properties

Ottawa's contribution: $15 million for amateur athletic facilities only.

Manitoba's contribution: $20 million

Winnipeg's contribution: A prop­erty- tax exemption for the stadium component only, except for year-round retail and restaurants operating within.

Creswin's investment: $100 million.

Polo Park component: Canad Inns Stadium to be demolished in late 2010 and the city-owned property will be sold to Creswin at full market value.

Creswin will then funnel lease revenue from future commercial developments toward new athletic facilities at Univer­sity of Manitoba.

University of Manitoba component:

30,000-seat stadium to be constructed in 2010 and 2011 at the northwest corner of Chancellor Matheson Road and University Crescent. Will include an inflatable "bubble" for winter field use, a Blue Bomber Hall of Fame, Bomber and Bison retail stores and a training centre for use by both Bomb­ers and Bisons. The project will also see upgrades to University Stadium stands and locker rooms as well as the construction of a new fitness centre somewhere on the Fort Garry campus.

Stadium ownership: A new non-profit organization called the Winnipeg Foot­ball Club Stakeholders, to be governed by eight board members. The city, province, the Winnipeg Football Club and Creswin will each appoint two members.

Football club ownership: A new cor­poration led by Asper assumes control of the Winnipeg Blue Bombers in 2010.

Club's future in Winnipeg: Guaranteed in perpetuity by Community Interest Agreement signed between Winnipeg Football Club, Creswin and all other parties. If Creswin or the stadium pro­ject fails, the club reverts to non-profit ownership.

-- Kives

Republished from the Winnipeg Free Press print edition June 11, 2009 B2