More On The Arena Deal

The Arena deal with the Spitfires is making me even more angry every time something else about it appears on the Council agenda. If only Councillors had read it.

On the Agenda is an item to lease space at the Arena to the Spits for a Pro Shop, Training Centre and Auxiliary Community Concession. The lease is for 3,950 square feet of space at a rental of $8.32 per square foot for the pro shop and training center and $12.75 for the community concession space plus municipal taxes. It is subject to a Consumer Price Index escalator every year. Concessions space totals 834 square feet.

All of this is to earn additional revenues for the Team. It is to make them a profit.

The Centre for Seniors Windsor also rents space at the Arena. This group pays $8.32 per square square foot for the space that they lease at the East End Arena. That amount increases annually by the amount of the Consumer Price Index. That group is

• "a non-profit, multi-service organization and registered charity, is mandated to provide social, recreational, educational, volunteer and service opportunities for older adults, 50 years and better."

Here are some questions that you might want to consider:

• Is there any reason why a profit-making organization should be asked to pay the same rental rates that a nonprofit pays?


• Why isn't the rental rate for the Spitfires reflective of the fact that it is located at a new arena where a greater number of people will attend to use their services?


• Other City arenas are not the East End Arena for which $65 million and counting of taxpayer money has been spent! Shouldn't the rent reflect that cost so that taxpayers can start earning a payback?


• Why shouldn't the Spitfires pay substantially more including a share of revenues?


• I did not see anything in the proposed lease for the payment of utilities or maintenance either. Why not?


• The rent for the Concessions was increased by slightly over four dollars because of the difficulty of collecting a revenue share supposedly. The revenue share is equal to about $3700. The revenue share at the much smaller 400 Building is over $6,000!

Of course, this is not the only reason why I'm angry. Why didn't Admin look at other arenas to compare rentals rates?

I'm sure that you remember the recent BLOG that I wrote outlining the multimillions that the City has given up with respect to advertising and signage [July 24, 2008. "Millions Lost To City In Arena Signage Deal"]

In my initial BLOG about the Arena deal [May 05, 2008. "Kids And Seniors Subsidize Millionaire Spits' Owners In Arena Deal"] I wrote the following:

• "The Spitfires don't just get to play hockey at the arena, they get additional facilities including office space up 2600 square feet and a Retail Store of 2000 square feet at no additional fee. This is an offset to the team putting in improvements to the Dressing Room (NOTE: The City claimed "In addition approximately $100,000 in upgrades to the dressing room area is being funded by the Spitfires.") That is a very nice rental rate over a period of 20 years when one compares what it would cost to rent all of that space commercially. Not only that, the City will make available these facilities on a "finished" basis comparable to that located in the Labatt Centre in London. [A big deal was made about funding by the Spits of their Dressing Room. What was not said was that but for fixtures, everything else can be removed"]

• "The City also pays for all utilities including those of the Spitfires as well as security for their area as well"

At $8.32 per square foot at the lower end, for those 4600 square feet that is almost three quarters of a million dollars in their pockets and at $12.75, the amount is $1,173.000 over the lease term. Note that I have not included in an amount for CPI increases nor revenue-sharing for the Retail Store. Add amounts in for those and get really ill!

Is someone ever going to stand up for taxpayers who are footing the bill for this Arena? I wonder what the Councillor formerly known as Councillor Budget will have to say other than "Aye, Mayor, Aye" when the vote is called.

Hmmmm. I wonder if the Star will consider this BLOG to be acceptable Naysaying.

Think there are problems with releasing the 400 Building Audit. As I wrote previously as well:

• "I don't know about you, but this Arena lease just opens up more questions for me about everything to do with the whole Arena transaction from start to finish especially because of the so-called confidentiality that does not exist. I wonder if someone on Council will have the guts to demand a full and proper audit of the entire process from start to finish. Don't hold your breath."