There’s still no deal between the city and province for financing the proposed new convention centre. Halifax council rejected a “compromise” offer from the province Tuesday, and sent staff negotiators back to the province with a counter offer.
Council met in secret for over five hours Tuesday, the bulk of the time discussing the convention centre (councillors also discussed committee appointments; see adjoining story). Afterwards, councillors would not disclose the specifics of either the province’s offer or the city’s counter-offer, but on background, several councillors say that the sticking point is the potential risk to the city.
The province wants the city to assume half the operating costs of the new convention centre, including half the operating subsidy. Presently, the city’s subsidy to the existing convention centre is limited to about $570,000 annually, adjusted into the future for inflation; under the province’s proposal, the city’s risk becomes potentially unlimited, should the convention centre fail to perform to expectations. Some councillors want an absolute cap on that potential risk, and such a proposal is likely contained in the counter-offer to the province. —Tim Bousquet
This article appears in Dec 2-8, 2010.
Here’s an idea on how to minimize risk: say fuck it! Too much chain yanking back and forth with this. It seems everyone wants the CC but no one wants the exorbitant cost of it. Walk away, simple and effective way to cut the potential loses.
I have to say I like council’s idea that there should be an option to but the extinct CC after 25 years. So just WTF are we paying Rank 159 Mil in quoted CC cost for? The deal should be lease to own, not least and then buy (likely for market value) as PK put forward.
“Operating Subsidy”? You are being very kind to use their word. In accounting it’s called loss from operations. When it piles up on the balance sheet year after year after year it’s called retained deficit or simply deficit and it means that Trade Centre Limited is not a going concern. It is a bankrupt company held on life support by continuing injections of tax dollars.
The potential loss is unlimited. Given the size of “unlimited” it’s a fairly subtle point on if we in HRM pick up their mess through our provincial tax dollars or our municipal tax dollars. The point is less subtle for those outside HRM.