Post by mikecubs on Jan 22, 2014 2:10:36 GMT -6
MLSE's Leiweke: Taxpayers would be paid back for BMO Field expansion
Maple Leaf Sports and Entertainment CEO Tim Leiweke says MLSE would pay “almost all” of the cost of expanding the Toronto FC stadium
Maple Leaf Sports and Entertainment could expand BMO Field in time for the July 2015 Pan Am Games, its chief executive says — but only if MLSE and the government can come to a financial agreement “very” soon.
BMO Field, owned by the city, is home to Major League Soccer team Toronto FC, owned by MLSE. CEO Tim Leiweke, fresh off a splashy $100 million investment in two players, wants to add a partial roof and more seats to a seven-year-old facility that he says has already “fallen behind the rest of the league.”
The $63-million stadium was built with about $45 million in public funds, including $10 million in cash from the city — plus a city donation of land worth $10 million.
Taxpayer funding of sports facilities is perpetually contentious. Leiweke said he believes the renovation agreement “will be a deal that won’t have a lot of controversy to it”: this time, he said, MLSE expects to pay the majority of the costs.
“What we’re trying to figure out is a way to get the renovation done where the majority of the burden, almost all of the burden, falls upon us, the private sector,” Leiweke said in an interview Thursday.
The total, he said, could amount to “twice” the price tag for the original project. He said Toronto taxpayers would probably make some initial payment. But he said MLSE would later return money to the public purse.
“I think if there is any contribution, it’ll be one where they get paid back over a period of time and get a healthy rate of return. So the significant majority portion of this is going to end up being us, and we get that,” he said.
“One of the things the city’s asked for is that we backstop a minimum revenue stream annually that would get their money back, plus some, over the period of the lease. So the city wants certainty. We’re working through that.”
Councillor Michael Thompson, chair of the economic development committee, said the deal under discussion would not come at any final cost to the city.
“It would net itself out. If you invested $10, at some point you’ll get the $10 back,” plus a return, Thompson said. He argued the investment would be an economic boon to the city, generating hotel stays, retail sales and other activity.
Leiweke said the project could be done in phases. The first phase would improve the concourses and increase the permanent seating capacity from about 22,000 to 30,000. The second phase, which could be completed in 2016, would build a roof over the seating area.
Leiweke said the renovation would allow for a temporary capacity of 40,000 for a major event like the NHL’s Winter Classic. To the chagrin of many TFC supporters, it would also position BMO Field as a potential home for the CFL’s Toronto Argonauts, who are not owned by MLSE.
“We are looking for a new home for our football team, and renovated BMO Field could be a great location for the Argos in the future,” said team spokesman Eric Holmes. “At this point, however, it is premature to say we will be there.”
Leiweke said the renovation is “not about us ultimately owning the Argos and putting them in there.” He then, immediately, made clear that the Argos are part of the equation.
“I think trying to find a solution so that there’s not another need, in another day, for a CFL stadium, is certainly something that has been raised,” he said.
The project may be more imminent than previously understood. Government officials, Leiweke said, have asked if the first phase could be completed in time for the Pan Ams. He said that is possible only if construction begins this summer. City council would have to approve the project within months.
“We understand that part of what they’re asking out of us is if they can have some upside on seating capacity for the Rugby Sevens competition that will take place during the Pan Am Games, and thus an economic benefit to the Pan Am Games, and a stadium that looks great in the eyes of the world,” Leiweke said.
Any BMO deal is likely to involve other levels of government. Jasmine Gill, a spokesman for provincial Tourism, Culture and Sport minister Michael Chan, said the province has not yet received any request for money but is “always open to exploring opportunities that will enhance Ontario’s profile as a premier destination for sporting events.”
www.thestar.com/news/gta/2014/01/19/mlses_leiweke_taxpayers_would_be_paid_back_for_bmo_field_expansion.html#
Maple Leaf Sports and Entertainment CEO Tim Leiweke says MLSE would pay “almost all” of the cost of expanding the Toronto FC stadium
Maple Leaf Sports and Entertainment could expand BMO Field in time for the July 2015 Pan Am Games, its chief executive says — but only if MLSE and the government can come to a financial agreement “very” soon.
BMO Field, owned by the city, is home to Major League Soccer team Toronto FC, owned by MLSE. CEO Tim Leiweke, fresh off a splashy $100 million investment in two players, wants to add a partial roof and more seats to a seven-year-old facility that he says has already “fallen behind the rest of the league.”
The $63-million stadium was built with about $45 million in public funds, including $10 million in cash from the city — plus a city donation of land worth $10 million.
Taxpayer funding of sports facilities is perpetually contentious. Leiweke said he believes the renovation agreement “will be a deal that won’t have a lot of controversy to it”: this time, he said, MLSE expects to pay the majority of the costs.
“What we’re trying to figure out is a way to get the renovation done where the majority of the burden, almost all of the burden, falls upon us, the private sector,” Leiweke said in an interview Thursday.
The total, he said, could amount to “twice” the price tag for the original project. He said Toronto taxpayers would probably make some initial payment. But he said MLSE would later return money to the public purse.
“I think if there is any contribution, it’ll be one where they get paid back over a period of time and get a healthy rate of return. So the significant majority portion of this is going to end up being us, and we get that,” he said.
“One of the things the city’s asked for is that we backstop a minimum revenue stream annually that would get their money back, plus some, over the period of the lease. So the city wants certainty. We’re working through that.”
Councillor Michael Thompson, chair of the economic development committee, said the deal under discussion would not come at any final cost to the city.
“It would net itself out. If you invested $10, at some point you’ll get the $10 back,” plus a return, Thompson said. He argued the investment would be an economic boon to the city, generating hotel stays, retail sales and other activity.
Leiweke said the project could be done in phases. The first phase would improve the concourses and increase the permanent seating capacity from about 22,000 to 30,000. The second phase, which could be completed in 2016, would build a roof over the seating area.
Leiweke said the renovation would allow for a temporary capacity of 40,000 for a major event like the NHL’s Winter Classic. To the chagrin of many TFC supporters, it would also position BMO Field as a potential home for the CFL’s Toronto Argonauts, who are not owned by MLSE.
“We are looking for a new home for our football team, and renovated BMO Field could be a great location for the Argos in the future,” said team spokesman Eric Holmes. “At this point, however, it is premature to say we will be there.”
Leiweke said the renovation is “not about us ultimately owning the Argos and putting them in there.” He then, immediately, made clear that the Argos are part of the equation.
“I think trying to find a solution so that there’s not another need, in another day, for a CFL stadium, is certainly something that has been raised,” he said.
The project may be more imminent than previously understood. Government officials, Leiweke said, have asked if the first phase could be completed in time for the Pan Ams. He said that is possible only if construction begins this summer. City council would have to approve the project within months.
“We understand that part of what they’re asking out of us is if they can have some upside on seating capacity for the Rugby Sevens competition that will take place during the Pan Am Games, and thus an economic benefit to the Pan Am Games, and a stadium that looks great in the eyes of the world,” Leiweke said.
Any BMO deal is likely to involve other levels of government. Jasmine Gill, a spokesman for provincial Tourism, Culture and Sport minister Michael Chan, said the province has not yet received any request for money but is “always open to exploring opportunities that will enhance Ontario’s profile as a premier destination for sporting events.”
www.thestar.com/news/gta/2014/01/19/mlses_leiweke_taxpayers_would_be_paid_back_for_bmo_field_expansion.html#
