At least THF is bought and paid for and City taxes have not gone up one thin dime to pay for it
And now this at WPG's Stadium
Interest charges mounting on Investors Group Field construction loans
Cost of building and financing has risen to $235 million and expected to climb
The cost of building and financing Investors Group Field has risen to $235 million and is expected to rise further because interest charges on construction loans are piling up faster than stadium debt is being paid off.
In 2015, the city, province and Winnipeg Football Club contributed a combined $5.8 million toward the repayment of a pair of stadium-construction loans originally pegged at $170 million.
At the same time, there were $8.3 million of new interest charges on the larger of the two loans, a $160-million loan taken out by the province, according to financial statements published by the University of Manitoba, one of the four partners in Triple B Stadium, the shell company that owns the home of the Winnipeg Blue Bombers.
As of March 31, the combined interest and principal owing on the primary construction loan stood at $186.7 million. That tally has risen while the Winnipeg Football Club focuses on paying off a smaller, $10-million CIBC loan taken out by Triple B Stadium.
Subtracting payments from interest, there is $2.5 million more debt associated with the stadium project at the end of 2015 than there was at the beginning of the year. Meanwhile, the total funds spent on stadium construction and financing now amount to no less than $235.2 million, not including a $35.3-million loan taken out by Triple B Stadium to replace the concrete and make other repairs at the two-year-old stadium.
The deal to build the stadium called for new city and provincial property taxes flowing from the former Canad Inns Stadium site at Polo Park to pay back $75 million of the $160-million stadium-construction loan, plus interest.
That site is currently home to a former Target store, now empty.
But even a dramatic increase in property-tax revenue from the site won’t whittle down the mounting interest on the main stadium loan. Under the terms of the loan agreement, the Winnipeg Football Club is exempt from paying interest on its $85-million share of the loan until Dec. 15, 2017.
In the interim, that interest is applied to the portion of the loan the city and province are paying back with Polo Park property-tax revenue. This has led the principal and interest outstanding on the city-provincial portion of the loan, payable in full in 2038, to rise from $75 million at the outset to $102 million this year.
City council finance chairman Marty Morantz (Charleswood-Tuxedo) acknowledged the mounting debt means it will take longer for the city to pay off its share of the loan. "In essence, the incremental taxes are a grant we’re paying to the football club to help build the stadium," he said.
The football club, meanwhile, paid Triple B Stadium $4.5 million in 2015 as part of its stadium-construction commitment, president and CEO Wade Miller announced Wednesday.
Under the terms of a stadium management agreement, the Bombers are slated to make additional payments to Triple B of $4.5 million in 2016 and 2017, a $3.5-million payment in 2018 and payments of no more than $4.4 million every year until 2058, when the loan is payable in full. :? :? :?
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