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First-class stadium promised

Private sector on hook for extra costs: mayor

By: Kevin Rollason

Posted: 08/4/2010 1:00 AM | Comments: 0 (including replies)

Mayor Sam Katz says changes to stadium design could force council revote. (WAYNE.GLOWACKI@FREEPRESS.MB.CA )

Mayor Sam Katz vowed Tuesday that Winnipeg will have a top-notch football stadium, even if that means it takes longer than originally anticipated to pay back government loans as construction costs escalate.

"I will tell you that yours truly, the mayor and the premier are committed to making sure that a stadium is built and that it's a first-class stadium and when you and the fans go there you will say 'wow.'"

Heavy equipment is expected to begin excavating at the University of Manitoba site today, even though the cost of building the new Blue Bombers stadium remains unknown and its final design is still being debated.

Katz didn't bite when asked at a hastily called press conference Tuesday whether the city is willing to put more money into the pot to build the stadium.

"They (Creswin) are firming up the dollars," he said, adding it will probably take the developer four to six weeks to come up with a firm number. "Until you get that number, you don't know what you're talking about... it's theoretical."

However, the mayor told CJOB that if it costs more than originally expected to build an impressive stadium, he is prepared for the city to forgo property taxes for the extra time period it would take for the province to recoup a larger loan.

Coun. Dan Vandal, part of the unofficial opposition at city hall but closely aligned with the NDP provincial government, said he agrees the city needs a new stadium -- even if more money is needed to build it.

"I would seriously consider paying more, subject to further information/details," Vandal said. "We need to get this project done."

Creswin Properties, headed by David Asper, came together with the province, the City of Winnipeg, the Winnipeg Football Club and the U of M in March on a plan to construct a $115-million open-air stadium with overhead projections protecting 80 per cent of the seating from rain and snow.

The province agreed to act as banker to provide $90 million in financing for the stadium, with property taxes from the retail development planned for the current Canad Inns Stadium site expected to pay back most of that.

However, Creswin recently said $115 million was a very rough estimate and to build the facility the stadium's partners saw in mock-up drawings would cost about $139 million. Asper says he only agreed to build a stadium costing $115 million, not necessarily the one in the drawings.

Creswin also said it only agreed to pay normal cost overruns for construction of about five to eight per cent.

While Creswin is looking at cutting features to get back down to the $115-million mark, the city has sent a letter to the partners saying any substantial changes would force city council to take another look at the proposal.

Katz confirmed Tuesday that if Creswin decides to change the stadium design to cut costs, city council would have to vote on the deal again.

"The private sector is responsible for cost overruns," Katz said in response to a Free Press article stating there is going to be a showdown between the partners on design and cost overruns.

Katz said the insurance policy for the repayment by Creswin is the Canad Inns stadium site itself: If Creswin runs into trouble paying back the bridge financing, the partners will take over the old stadium site, sell it to another developer and have the property taxes pay off the bridge financing.

Asper was unavailable for comment.

Mayoral candidate Judy Wasylycia-Leis said it was irresponsible for the mayor and council to agree to a stadium before knowing the final numbers.

"I agree we should have a state-of-the-art stadium, but we need to do it in a fiscally responsible way," Wasylycia-Leis said.

kevin.rollason@freepress.mb.ca

Republished from the Winnipeg Free Press print edition August 4, 2010 B1

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