Katz to Asper: No Elms until bank supports stadium loan

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This article was published 16/04/2010 (5635 days ago), so information in it may no longer be current.

WINNIPEG – Mayor Sam Katz pledged to ensure David Asper’s Creswin Properties will not be able to build a retail development at the Canad Inns Stadium site until it demonstrates it can pay back its $75-million share of the Winnipeg Football Club’s stadium-building loan.

Speaking to reporters this afternoon, Katz put to rest the idea that Creswin is merely trying to grab valuable Polo Park commercial land under the guise of taking part in a $137.5-million plan to build a new home for the Winnipeg Blue Bombers at the University of Manitoba and also develop recreation improvements at the university.

Two weeks ago, the city, province, Creswin and the football club agreed to a deal that will see the province give the football club a $90-million loan to begin building a $115-0million stadium right away. That plan requires Creswin to pay back $75 million of the loan by March 2016 in order to acquire the Winnipeg Football Club’s assets. Creswin plans to use revenue from a retail development called The Elms to help pay back the loan, as well as a new loan based on its equity in the Polo Park property.

The city has already agreed to sell Creswin the Canad Inns Stadium property at fair market value. Katz now says the development of the site won’t proceed until they city sees a letter from a financial institution that demonstrates how Creswin will acquire the loan that will enable it to pay back the province.

Katz said the city wants to prevent the possibility of Creswin obtaining the existing stadium site without following through on its plan to acquire the football club and manage the new university stadium.

If Creswin fails to build The Elms, property taxes from another new development at the existing stadium site will pay back the provincial loan. The city and province currently do not earn a penny from the site.

A report heading to executive policy committee on Wednesday elaborates on details of the plan. It includes a provision for the Winnipeg Football Club to continue collecting entertainment taxes to pay off a bailout loan provided by the Winnipeg Enterprises Corporation, the entity that used to run Canad Inns Stadium and the old Winnipeg Arena.

Once the Enterprises loan is paid back, the entertainment taxes on pre-season and regular-season games will go to a new non-profit organization that will use the funds to make improvements to the new stadium in the future.

Creswin will get to keep playoff-game entertainment taxes.