Bombers' moving day iffy

Enlarge Image

David Asper

Enlarge Image

Proposed stadium at the University of Manitoba is just one element of complex plan. ( WINNIPEG FREE PRESS ARCHIVES)

The Winnipeg Blue Bombers may be forced to play two more seasons at aging Canad Inns Stadium, as the year-long recession has hampered future owner David Asper's plan to get a new University of Manitoba bowl built by 2011.

Back in April, when Asper's Creswin Properties secured $35 million in federal and provincial funding to build a new home for the Winnipeg Football Club, the deal was contingent upon the real-estate company securing retail tenants for the existing Canad Inns Stadium site, which the city of Winnipeg intends to sell Creswin at full market value.

On Monday, Asper said the recession has slowed the progress of the retail development but said he plans to reveal before the end of September what he has planned for Polo Park.

"What you're going to see is a jaw-dropping retail plan that is unlike anything within hundreds of miles of Winnipeg and is a massive destination," Asper said in an interview. "Progress continues to be made across the board. We are convinced and continue to be convinced the entirety of this project is going to happen."

The future Bomber owner said it's possible Creswin may not meet the retail-assembly timeline announced back in April, but "the value of what we're proposing is so potentially immense" that some delays will not hamper the project, he said.

The complexity of the deal, which involves retail negotiations, consultations with the city, province, Ottawa and the University of Manitoba, and plans for construction projects on either side of Winnipeg, has also proved more difficult than Creswin expected.

"It's ironic. If we had actually been able to do the very first proposal we made in January 2007, we would be playing in the new facility right now. Maybe we were overly optimistic about that proposal. As it morphed, it became more and more complex," Asper said.

"What's a bit frustrating is, measured against the original proposal, is we clearly ran into the worst recession since the Depression at a time when the entire economic engine (for the stadium deal) requires retailers."

While Winnipeg has escaped the worst of the recession, the U.S. retail industry has been hammered by a year of economic decline. Retail observers say Creswin's Polo Park development has been affected because they believe the Winnipeg real-estate company is pursuing high-end U.S. department-stoore chains.

Asper would not confirm this speculation, as he said the deal must be fleshed out before he goes public.

"In spite of the challenges with the U.S. recession, there's been very positive progress," he said. "We've made a commitment to the fans to do this right, and we must do this right once -- the first time."

Asper would not confirm the new stadium could no longer be built by 2011, but such a delay is likely if construction on the stadium does not begin as planned in February 2010, said Ken Hildahl, chairman of the Winnipeg Football Club's board of directors.

The cost of playing an additional year at Canad Inns Stadium "would not be astronomical" to the club, although some capital improvements must be made to the 56-year-old structure every year, Hildahl said.

"A delay of weeks or months on the stadium project would not affect Creswin's deal to purchase Polo Park land from the city or secure $20 million from the province. But a longer delay could affect the release of $15 million from Ottawa for new recreational and athletic facilities at the University of Manitoba, said Manitoba Premier Gary Doer.

"There is some federal money tied in the stimulus package to time, but I'd have to look at the timing of that time," the outgoing premier said.

A federal election may also complicate the issue. The Conservative minority government could fall as soon as the end of the week, as the opposition Liberals plan to defeat the Tories at the first opportunity.

-- With files from Bruce Owen

bartley.kives@freepress.mb.ca

How development evolved

Steps toward the construction of a new home for the Winnipeg Blue Bombers:

November 2006: Canwest executive David Asper says his real-estate company, Creswin Properties, is interested in buying the Winnipeg Football Club and building a new stadium at Polo Park. Asper seeks $80 million from Ottawa and Broadway.

February 2007: The football club launches a formal search for partners to build the new stadium.

May 2007: The club chooses Creswin's Polo Park plan over a rival Canad Inns hotel chain proposal for the Public Markets in St. Boniface.

June 2008: After Ottawa declines to fund a Polo Park stadium, Asper and Winnipeg Mayor Sam Katz float a plan to build a new stadium in South Point Douglas. Asper reduces his ask from Ottawa and Broadway to $40 million.

September 2008: Creswin signs letter of understanding to build a football stadium at the University of Manitoba, refurbish University Stadium and build athletic facilities. The city agrees to sell Creswin the site of Canad Inns Stadium at full market value.

April 2009: Ottawa and Broadway agree to spend a combined $35 million on the stadium project, which will see a retail development at Polo Park fund the team and new U of M stadium.

September 2009: The retail marketing, leasing and financing for Creswin's Polo Park development is supposed to wrap up by the end of the month.

Spring 2010: Under the timelines laid out in the April deal, construction on new stadium is supposed to begin and Asper will assume control of the Winnipeg Football Club.

Fall 2010: Under the original timelines, Canad Inns Stadium was slated to be demolished at the end of the 2010 football season. This is now in doubt.

Summer 2011: Under the original timelines, the new U of M football stadium was slated to open in time for the 2011 season. Now, 2012 is looking more likely.

2011-2013: Retail components of new Creswin development at former stadium site at Polo Park slated to open.

-- Sources: Creswin, Winnipeg Football Club

Republished from the Winnipeg Free Press print edition September 15, 2009 A3