It looks like the Toronto suburb of Markham really is dead set on building a $325 million NHL-ready arena, with private developers GTA Sports and Entertainment formally submitting an application for the project yesterday. According to Markham Mayor Frank Scarpitti, the goal is to have construction underway by as soon as the end of this year, with the arena open by late 2014 — both of which sound pretty ambitious, especially given Ontario winters and what they mean for construction timetables, but maybe Scarpitti is planning on some outside help in that department.
Under the plan approved in April, Markham will borrow the $325 million cost of the arena, then be repaid by a combination of rent from GTA, arena revenues (whether this means actual revenue streams from arena sales or taxes on arena spending never seems to be specified) and revenue from “future development” around the arena, which would effectively be a kind of TIF.
If Markham does go ahead with the arena even without an identified team to play in it, it would potentially be a relocation target for some of the teams currently engaged in arena subsidy battles (Phoenix Coyotes, New York Islanders), though there’s still the major obstacle that the Toronto Maple Leafs would scream bloody murder if anyone tried to horn in on their media market. Could Markham make a go of an arena without a major sports tenant? Maybe, but the existing evidence isn’t promising.
from Field of Schemes http://www.fieldofschemes.com/2012/08/09/3640/markham-now-thinks-it-can-open-new-arena-by-2014/
No comments:
Post a Comment