If shares were issued by the city of London, the risk on your investment would be shielded by the city's legally unrestrained access to your earnings to the tune of 5.9 and 6.6 per cent property tax rate increases in the past two years. Unfortunately, you'd still only receive warm-and-fuzzy-feeling dividends, compliments of the London Free Press:
Mr. Cote ought to be hoping that the JLC would be doing a lot better — the city spends annually about $4.1 million on debt payments for the $42 million it contributed towards land and construction of the $52 million facility.
London's share of a year's profit from the John Labatt Centre was $151,000.
This comment by an anonymous reader bears repeating:
Revenues totalled $13.8 million against expenses of $12.5 million, producing a profit of $604,394 for the London Civic Centre Corp., the private-sector partnership that leases the facility from the city. Global Spectrum manages the JLC.
Deputy mayor Tom Gosnell, a critic of the original deal made with Global Spectrum, thinks that it's time to let dead dogs lie, never mind the flies and stench:
Remember the 'original' deal based on conservative estimates estimated the City getting annual profit share of approx $500,000. But a few City staffers in the back pocket of Global Spectrum 'amended' the deal and slipped in wording allowing Global to siphon out all profits as 'management fees' and what ever was left the City got a share of which had to be at least $50,000. Some people would call this FRAUD … but corruption at the very least.
I've no doubt a methodologically vague measurement could be constructed to support the city's position, but it would be a stretch to come up with $42 million. Sounds like a job for some academics looking for grants coming from you know who.
"Its overall economic impact to the city is measurable, with the activities and spinoffs you see downtown."
Thursday, December 15, 2005
Posted by MapMaster on Thursday, December 15, 2005