Fig
Absolute Horse Shirt
- Dec 15, 2014
- 12,995
- 8,463
I'm ok with the outline of the proposed deal. Is it a good deal, as a Calgary based taxpayer absolutely not, as I think at least 50% ($600M) of the cost should have been on CSEC.
I am also not ok with the veiled threat of Danielle Smith basically saying Calgary needs a strong UPC vote to provide the mandate.
This is no deal right now this is now an election platform issue.
I don't disagree with you. Raw cost wise, it makes more sense that CSEC takes on at least half. However, I think the problem is that the city owns the land. The land is worth a ridiculous portion of the deal and it doesn't cost the city much to contribute it to the deal.
IIRC the original 600 million plan, the city was going to put up $50 mil + land and the CSEC was basically the one who would have to come up with the cash or borrow it + pay interest for the rest of everything. I think this is sorta still the case, but I don't know if the Province is funding or lending (major difference) that $330 million. This likely means that the CSEC is on the hook for like 66%-80% of the real cash implications (ignoring interest on any loans) to complete the project. This is probably the sticking point from CSEC's side. They'll let the city and the province spin the angle from a FMV contribution value perspective and hide the "where's the money coming from?" perspective.
But honestly, I don't know. That's just questions you uncover from an accounting standpoint once you start poking into the situation there.
LOL that's not what happened
CSEC bailed on the deal because they agreed to cover cost overruns (in exchange for getting to manage to project instead of the city) only to have the whole covid thing make material prices go sky high.
That being said, Grondek & the city got taken to woodshed in this deal. Nenshi was so much better.
It was the official straw that broke the camel's back. CSEC indeed agreed to cover cost overruns. Nary a peep when the material prices went through the roof. Only blew up the deal when Gondek started saying that there were solar panels and sidewalks and other things that needed to be part of the deal and if I'm not mistaken, brought up the idea of the city managing the project over CSEC. I suspect scope creep and micro management might be the real culprit, but that's not what's the official comment. Official comment is that CSEC thought Gondek and co were nickel and diming and not in good faith (openly said, not sure what was privately said) and blew up the deal. The city management of the project might be the real reason CSEC blew it up, but I believe in the media, they commented on the sidewalks and solar panels and stuff prior to blowing up the deal.
I suspect Gondek had to accept shitty terms under the mediation because she indeed was doing things that could have been considered objectively not to be in good faith.
The funny thing about "Nenshi is better" is that I seem to recall people saying no one could eff up worse than Nenshi. Not saying it against you negatively or anything, but damn. Sometimes we don't know what we have until it's gone and you have worse.