What a completely non-sense argument. Everyone pays property tax. So if the city gave me $100k, they really wouldn't be giving me anything cause they would get it back eventually from taxes I pay. ok there.
This is exactly the reason that the model that all sports leagues want is:
City builds arena
City owns arena
Team 'manages' arena
City pays team to 'manage' arena
Team gets all revenue sources
In other words, the teams want everything. Tell them they can't have it, and they are not happy.
Basically, from what's written above, this is what is agreed on:
The cost will be 550M.
After that, the city offers:
1/3 from city
1/3 from team
1/3 from users (all users, not just hockey, I assume)
And, the team owns it, so they pay property tax
Team offers:
First, city will own. So, all land, demo, etc are not factored in. Immediately, that means:
City pays 50M up front.
After that,
1/2 city
1/2 team
Team contribution is not "Up front" but relies on Naming Rights, etc.... In other words:
City pays it all, and team pays some back over time.
So, the HUGE differences here are:
How much the Flames will pay?
When will they pay it?
I like the city's negotiating stance here.