{"id":17447,"date":"2011-01-24T09:55:06","date_gmt":"2011-01-24T13:55:06","guid":{"rendered":"http:\/\/spacingtoronto.ca\/?p=17447"},"modified":"2013-01-21T15:06:38","modified_gmt":"2013-01-21T20:06:38","slug":"lorinc-pucks-periods-and-penalties-triple-ps-for-new-arenas","status":"publish","type":"post","link":"https:\/\/spacing.ca\/toronto\/2011\/01\/24\/lorinc-pucks-periods-and-penalties-triple-ps-for-new-arenas\/","title":{"rendered":"LORINC: Pucks, periods, and penalties: Triple Ps for new arenas?"},"content":{"rendered":"

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\nWhen Giorgio Mammolitti mused last week<\/a> that council should turn to public-private partnerships to develop new arenas, he was, I\u2019m guessing, thinking about arrangements in which the City antes up the land while some private entity emerges with not just project financing, but also advertising and long-term tenancy agreements that produce enough revenue to make the whole effort turn a profit.<\/p>\n

In other words, we end up with over-designed mega-facilities equipped with generous stands, perhaps a Tim\u2019s franchise, auctioned-off naming rights, ads on the boards, and other revenue-producing amenities. The target market: competitive hockey league teams where the parents are willing to shell out serious green for ice time, as well as rental arrangements with private figure skating and hockey camps.<\/p>\n

The result: the Lakeshore Lion\u2019s Mastercard Centre for Hockey Excellence<\/a>.<\/p>\n

In principle, I don\u2019t have a problem with the notion of using private capital to build rinks \u2014 after all, the City certainly doesn\u2019t seem capable of doing it. But my question is whether we necessarily need to go the corporate route described above.<\/p>\n

Put another way, could the City envision an arena version of the Wychwood Barns, which, dare I say it, is a Triple-P project that progressives love to, well, love.<\/p>\n

Jutta Mason<\/a>, are you listening?<\/p>\n

Let\u2019s pause here to consider the case of some of Toronto\u2019s arena boards of management, which operate at an arm\u2019s length from the City. Amazingly, they collectively turned a very small profit ($3,000) for the City in fiscal 2009, generating precisely enough operating revenue to cover their costs as well as their routine capital outlays. The mortgages were paid off years ago.<\/p>\n

The arena I use regularly \u2014 Bill Bolton, in Seaton Village \u2014 is an amazing place. The coffee in the snack bar is $1.25 for a large, and you can get a decent stick in the pro shop for $30. The arena operates both, as well as the highly affordable programs geared to skaters and hockey players of all ages and both genders. In 2009, Bolton\u2019s expenditures totaled $776,700 and its revenues came in at $777,000.<\/p>\n

Despite its popularity, Bolton has no parking lot, no stands, no advertising, a cramped ice surface and tiny dressing rooms. Anyone proposing such a facility in 2010 would be laughed out of City Hall. And yet it works.<\/p>\n

The point is that if the City does pursue a Triple-P strategy for arena development, the rules shouldn\u2019t be narrowly cast to cater only to for-profit partners who need a 10% or 15% return on investment and will thus be looking to sell naming rights, build multi-pad facilities, and sign up franchised concessions.<\/p>\n

Rather, it\u2019s entirely possible that community groups might come forward with more modest proposals designed to meet local needs instead of some investor\u2019s margins. Again, the Wychwood Barns model is worth exploring: not-for-profit tenants, multiple-uses, donations to help cover capital costs, City land, even unconventional financing. What if some enterprising community organizer decided to sell shares in a local arena project to raise capital instead of traipsing off to the bank for a commercial loan? Or partner with a school board? And what about much more small-scale outdoor rinks equipped with compressors and a small club house? Will the City be willing to entertain community proposals to develop those?<\/p>\n

Ultimately, council needs to keep the goal clear: such partnerships are a means to an end, not an end unto themselves. It\u2019s not just about that second P.<\/p>\n

Photo by Nedra<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

When Giorgio Mammolitti mused last week that council should turn to public-private partnerships to develop new arenas, he was, I\u2019m guessing, thinking about arrangements in which the City antes up the land while some private entity emerges with not just project financing, but also advertising and long-term tenancy agreements that produce enough revenue to makeContinue reading “LORINC: Pucks, periods, and penalties: Triple Ps for new arenas?”<\/span><\/a><\/p>\n","protected":false},"author":4051,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ngg_post_thumbnail":0,"_ef_editorial_meta_paragraph_assignment":"","_ef_editorial_meta_date_first-draft-date":"","_ef_editorial_meta_checkbox_needs-photo":"","_ef_editorial_meta_number_word-count":"","footnotes":""},"categories":[13,2],"tags":[309,16951,5239,5412,16950,22085,95,3999,19,391],"class_list":["post-17447","post","type-post","status-publish","format-standard","hentry","category-green-space","category-politics","tag-bank","tag-bill-bolton","tag-giorgio-mammolitti","tag-jutta-mason","tag-mastercard-centre-for-hockey-excellence","tag-politics","tag-recreation","tag-school-board","tag-toronto","tag-usd"],"acf":[],"yoast_head":"\nLORINC: Pucks, periods, and penalties: Triple Ps for new arenas? 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