Halifax CFL stadium pitch a game of ‘risk’

Business case analysis will proceed, although details seem to be scant

HALIFAX— A football franchise and stadium is a step closer to reality, but serious questions remain about the financial risk involved for the municipality.

Halifax regional council voted unanimously in favour of a staff report on a business case analysis of the stadium proposal on Tuesday.

The motion passed will also see municipal staff work with the provincial government on a long list of necessary legislative amendments and potential funding sources.

It also means the proponents, Maritime Football Limited Partnership (MFLP), will start consulting the public on their plans for a 24,000-seat stadium in Shannon Park in Dartmouth to host a CFL expansion team for the 2021 season.

“There’s a lot of players at the table, but I think ultimately there’s optimism that we can do this, as long as everybody is at the table understanding what the shared risk is,” Anthony LeBlanc, founding partner of MFLP told reporters after the vote.

“We’ll move the ball down the field.”

Building the stadium would cost between $170 million and $190 million, but it’s still un- clear who’s footing that bill. LeBlanc said MFLP would take on the operational risk of the stadium, meaning the ongoing costs once it’s built. He pegged those at $3 million annually or more.

“We plan on being the sole group at risk in regard to the operations of the facility,” he said.

During the council meeting, chief administrative officer Jacques Dubé told councillors that the municipality wouldn’t own the stadium or the debt.

“We’re not looking to take construction risk. We’re not looking to take financial risk on the project,” he said.

Dubé’s plan to pay for the stadium is a controversial financing model called Tax Increment Financing (TIF).

The municipality would create a TIF district around the stadium, and the property taxes from the commercial development planned in that area would ostensibly pay for the debt financing costs — $9 million to $10 million annually.

Halifax Mayor Mike Savage said during debate that he does not “really yet have my head around how the TIF works.” But he doesn’t have any doubts about the location or the viability of a CFL team.

“I think a stadium at Shannon Park would be completely awesome,” Savage said, adding, “I have absolutely no doubt that football will be successful if it comes to Halifax.”