Markham GTA Centre | ?m | ?s | GTA S. and E. | BBB

Jonny5 said:
Well for now, their chances of landing an NHL team have declined significantly as Phoenix is 99% not moving (it technically isn't a done deal but it's expected to be final on Monday.) Expansion seems destined for Seattle/Portland and Quebec City. Their financial model without a team was BS. The whole proposal hinged on an NHL team and they aren't getting one.
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The deal only gives them a reprieve for five years. Their long-term future in Arizona is very far from secure.
 
GenerationW said:
The deal only gives them a reprieve for five years. Their long-term future in Arizona is very far from secure.
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Yes, that's correct. I'm writing in the context of cycles of NHL expansion and getting this arena built. If they don't have Markham tax dollars as a backstop, and can't get an NHL team for at least 5 years or longer, I think the interest from the projects backers to start building now will dry up.
 
This would mean that the city would only need to borrow for the half of the money that's coming from development charges. Assuming the lease arrangement is fair to the city, we might be getting closer to a deal here.

New Financial Framework Option for GTA Centre
Wall Street, Bay Street Join GTA Centre Team



FOR IMMEDIATE RELEASE



Markham, ON, September 17, 2013 — GTA Sports & Entertainment announced today a new option for the financial framework for the proposed GTA Centre. This new option proposes that GTA Centre, LP would be responsible for funding all costs towards the construction of the GTA Centre above a maximum amount of $162.5 million, which the City of Markham would facilitate through receiving private sector developer contributions.

As a result of this new option for the financial framework, the City of Markham would no longer need to borrow $325 million — as in the original financial framework option that was approved by an 11-2 vote by City Council in April 2012 — and the GTA Centre would be 100% privately funded.

Two leading investment banking firms, Wall Street firm Jefferies LLC and Bay Street firm Canaccord Genuity have joined the GTA Centre team to support this new option.

“We joined the GTA Centre team because we strongly believe in the GTA Centre project and Graeme Roustan,” said Andrew Whittaker, Vice Chairman, Jefferies LLC. “We have worked for Graeme Roustan as his financial advisor since 1995 on a number of large scale transactions, including the acquisition of Bauer from Nike and in his bid to acquire the Montreal Canadiens.”

“Canaccord Genuity believes in Graeme Roustan’s vision for the GTA Centre. We feel strongly that the GTA needs a centrally-located, first-class sports and entertainment facility to better serve the existing and ever-growing population,” said David J. Kassie, Group Chairman of Canaccord Financial Inc. “We first conveyed our support of Graeme and the GTA Centre to Mayor Frank Scarpitti, Deputy Mayor Jack Heath and Regional Councillor Jim Jones when all three councilors came to our offices and met with me three years ago today.”

“We believe that our new option should be considered seriously by Council members,” said W. Graeme Roustan, Chairman and CEO, GTA Sports & Entertainment. “I have met with several private sector developers who support the GTA Centre and want to make financial contributions to the city towards its development. I am very confident that the City of Markham will come up with a satisfactory way to receive the contributions from the private sector developers.”
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http://gtacentre.ca/?p=10852
 
A major announcement is coming up on CP24....

Update: 9:42 AM - press conference underway
 
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Done now, summary ? I only caught the part that seemed to say they are going ahead ?
 
taal said:
Done now, summary ? I only caught the part that seemed to say they are going ahead ?
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That was pretty much it..I expected a bit more content..
 
Not much change, but getting closer.

Markham mayor Frank Scarpitti said Friday that a group of developers is considering putting about $120 million toward the estimated $325- million project.

Scarpitti will join Graeme Roustan, chairman and CEO of the arena group, and representatives of the development community at the presser. Scarpitti said the project to date has a commitment of $70 million from developers with a commitment for another $50 million still being sought.
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http://www.torontosun.com/2013/11/30/markham-arena-group-making-major-announcement
 
I don't understand ... wasn't the idea always to get the extra cash through development surcharges in the area => tax on new home purchases ... what's changed ?


Anyway, I can see they're pushing aggressively for this so I predicit it'll indeed go through ... maybe not in time for 2015 junior hockey championships though.
 
The developers are providing cash payments instead of extra development charges (except for the $10 million already collected). This is mostly about optics and how some feel that a development charge is still a tax. The developers must think that they are going to pay for this either way -- and they have been in support of it all along -- so it probably doesn't make much of a difference how they pay for it. The only difference I see if that there would no longer be a risk of new home construction slowing down and development charges drying up during a downturn.

What I'm really curious about is how many of the companies who recently gained approval to convert employment lands to residential are part of this new arrangement? The profit that will be made from the rezoning that is to allow 7,500 new residences (everything from condos to detached houses) could build many arenas. $70 million and the $50 that is yet to be found is chump change compared to the billions of dollars of new housing that will now be sold (not all profit of course, but still). I'm not saying this is a conspiracy, but I think the reason the development companies are playing ball is that an arena can only help to increase the value of all this future development.

http://www.yorkregion.com/news-stor...l-zones-being-designated-for-residential-use/

2015 Juniors is well off the table.
 
I think the GTA can support it; At least I assume so, I now there are many claims similar sized regions in the US have more arenas, but I wonder how true that is.

So for sure # wise they due, typically due to a separate NBA / NHL, NFL, and MLB arena (that's 3 right there) ... but I have no idea what the NFL / MLB areanes are used for in the off season, I doubt they can be used for many concerts.

So a better question is how many ~ 20K indoor arenas exist in such cities, anyone have an idea ? I know NYC has at least 2 now, one for both New York Rangers + Brooklen Nets. But what about other cities ? i.e. Chicago / Huston / ... ?
 
So a better question is how many ~ 20K indoor arenas exist in such cities, anyone have an idea ? I know NYC has at least 2 now, one for both New York Rangers + Brooklen Nets. But what about other cities ? i.e. Chicago / Huston / ... ?
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Cities off the top of my head that have two or more 17,000+ seat arenas

Detroit - Palace of Auburn Hills, Joe Louis Arena
Chicago - United Center, Allstate Arena
New York City - Madison Square Garden, Barclay's Center, Nassau Veteran's Colliseum (Uniondale), Prudential Center (Newark), Izod Center (East Rutherford)
Columbus - Value City Arena, Nationwide Arena
Los Angeles - Staples Center, Honda Center (Anaheim), L.A. Forum
Miami - American Airlines Arena, BB&T Center (Fort Lauderdale)
Phoenix - Jobing.com Arena, U.S. Airways Center (Glendale)
San Francisco - HP Pavillion (San Jose), Oracle Arena (Oakland)
Minneapolis - Target Center, Xcel Energy Center (Saint Paul)
 
I assume you weren't counting NHL or MLB arenas ? If so, yep that's proof enough for me we could support 2.
 
I wouldn't count NFL or MLB since those are played in stadia and not arenas. The list above is just arenas though.
 
canarob said:
I wouldn't count NFL or MLB since those are played in stadia and not arenas. The list above is just arenas though.
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Yes, those are enclosed arenas that are primarily used for NBA, NHL and concerts, usually ranging in capacity between 17,000 - 21,000.
 
mjl08 said:
Cities off the top of my head that have two or more 17,000+ seat arenas

Detroit - Palace of Auburn Hills, Joe Louis Arena
Chicago - United Center, Allstate Arena
New York City - Madison Square Garden, Barclay's Center, Nassau Veteran's Colliseum (Uniondale), Prudential Center (Newark), Izod Center (East Rutherford)
Columbus - Value City Arena, Nationwide Arena
Los Angeles - Staples Center, Honda Center (Anaheim), L.A. Forum
Miami - American Airlines Arena, BB&T Center (Fort Lauderdale)
Phoenix - Jobing.com Arena, U.S. Airways Center (Glendale)
San Francisco - HP Pavillion (San Jose), Oracle Arena (Oakland)
Minneapolis - Target Center, Xcel Energy Center (Saint Paul)
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You seriously know that of the top of your head? :)
 
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