Calgary Flames CEO Ken King went on TSN 1050 radio in Toronto yesterday (sorry, don’t know where it’s archived) to talk about his $890 million Frankenstadium plan, and got in some quality whining about how he’s not appreciated enough for being willing to put up half the cost of a project for his own team’s benefit:
“It’s funny, if you get off a plane from New York or London or Paris and said, hey, I’ve got $550 million and I’m kind of interested in your city and I’m kind of interested in doing a project, people would be falling over themselves. Please, please come here. But it seems in sports it’s difficult to be a prophet in your own country.”
I … don’t think that’s actually true that out-of-towners get automatically lavished with property-tax kickbacks and cash from the city treasury and money to clean up polluted sites, at least not any more than in-towners do. But it’s always nice to lead with complaining that no one loves you enough for your money.
And speaking of those property-tax kickbacks — what would be called tax increment financing (TIF) in the U.S., and is a community revitalization levy (CRL) in Canada — King confirmed that these wouldn’t be just taxes on the stadiarena, but on all the development that would theoretically take place around it:
“There will be office towers, condos – just like stuff between Air Canada Centre and Rogers Centre – that will be built. A portion of the taxes from those – a portion – for a period of time will be used to finance the project. By the way, those are taxes that don’t exist if we don’t do this.”
This is the age-old argument for TIFs, and it has a gaping logical hole: If there’s actually demand for office towers and condos, then they’ll be built somewhere in your city, with or without a new sports venue. (Unless you think people will suddenly flock to Calgary to buy condos the minute the Stampeders are playing in a new stadium instead of an old one, which, uh, yeah.) Which means that you end up with the same amount of overall development, but the city suddenly not getting new property tax revenue to pay for all the things that are needed to support an expanding city.
This is exactly what happened with runaway TIFs in Chicago, as discussed this week on the penultimate episode of KUCI’s Heather McCoy Show. (Last episode this Tuesday! Tune in to hear if Heather can top Jon Stewart’s Daily Show farewell!) It’s really nice to think that there could be a perpetual motion machine that could use tax money to pay for things without it costing anybody anything — really nice if you have $550 million in your pocket and want $500 million more from the public, that is — but Calgary might want to check on how well it’s actually worked in practice first, just in case.