Third down and inches to go

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This article was published 14/12/2010 (5427 days ago), so information in it may no longer be current.

David Asper will walk away, the province will dig deeper and the Winnipeg Football Club will shoulder an even heavier debtload under the terms of the third, and hopefully, final plan to complete the city’s new football stadium.

By Wednesday, the city, province, Winnipeg Football Club and the University of Manitoba expect to complete a deal to build a 33,000-seat venue for the Winnipeg Blue Bombers and Manitoba Bisons — with all the funding coming from the public purse and the non-profit football club.

The deal must be signed Wednesday to ensure the construction costs are locked in at $190 million, Mayor Sam Katz told reporters Monday after a closed-door council seminar.

The final plan will see would-be developer Creswin Properties depart the project with $4 million in compensation for the $6.6 million the company spent on the project. The $4-million figure is included in the $190-million cost, Katz said.

The province, meanwhile, will contribute more cash to the project — $22.5 million instead of $15 million — and pay for the bulk of the construction costs up front. The city will also contribute $7.5 million in cash, using proceeds from the sale of the existing Canad Inns Stadium site at Polo Park.

As previously announced, the province will recoup $75 million from city and provincial property taxes emanating from new commercial and residential developments at the existing stadium site, which currently generates no such revenue.

Finally, the non-profit Winnipeg Football Club must repay the province $85 million over 40 years, which will amount to more than $3 million a year in principal and interest. The club’s board of directors voted to approve the plan last night.

“The football club feels this is a positive move for the organization on and off the field, and for its loyal fans,” spokesman Darren Cameron said Monday night in a statement. “Furthermore, the transaction has been structured to ensure continued viability of the team, allowing it to sustain and develop for the future under all circumstances.”

The club intends to pay back the province using new sources of revenue at the University of Manitoba stadium, such as naming rights, more concessions and luxury boxes, facility fees and entertainment taxes.

Katz refused to say whether he believed in the team’s business plan, noting he only supports the deal because it only requires the City of Winnipeg to spend a total of $12.5 million. Along with the $7.5-million stadium grant, the city plans to waive off $1.1 million in permits and fees, spend $1.4 million on traffic improvements around the new stadium and as previously announced, contribute $2.5 million to U of M recreation improvements that are also being funded by Ottawa and Broadway.

“Twelve and a half million to have a brand-new, state-of-the-art stadium? I’d say that’s a heck of a deal,” Katz told reporters.

Most city councillors appear to agree, as the plan heads for a council vote on Wednesday. Fort Rouge Coun. Jenny Gerbasi lamented the absence of a private partner in the stadium deal but said she’s inclined to agree with Katz.

The sole voices of opposition at city hall on Monday were Daniel McIntyre Coun. Harvey Smith, who might vote no on Wednesday, and Transcona Coun. Russ Wyatt, the only member of council to vote against the previous stadium deal in April.

Wyatt remains opposed. “This a deal to open up real estate in Polo Park so a lot of rich people can get richer. This is a property deal, not a stadium transaction,” he said, accusing Katz of rushing the deal before council. “The entire process has lacked transparency and I think the public deserves better.”

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Manitoba Opposition Leader Hugh McFadyen, who has previously expressed similar sentiments about the stadium deal, reserved further comment about the plan on Monday.

Premier Greg Selinger also declined to comment on the emerging details of the new stadium deal and the province’s increased stake in it. A spokesman for the premier’s office confirmed only that the province supports the deal and will wait for the other players to approve it.

The final entity that must approve the deal is the University of Manitoba. The executive committee of the university’s Board of Governors will vote on the issue tonight, spokesman John Danakas said.

— With files from Bruce Owen

bartley.kives@freepress.mb.ca