Friday, September 28, 2012
For the record, here are the city's official responses to a couple questions we asked earlier this week on the Lansdowne file.
First, how did the estimated revenue from naming rights at Lansdowne leap from $15.7-million to $50.2-million in the space of seven months?
"The naming rights projected revenue has increased from earlier estimates as a result of the recommendations obtained by OSEG from their third party consultant, which is highly respected in their field and have expertise in this area. The naming rights values were increased based mainly on the fact that the overall components of the project consisted of not only the stadium and arena but also the mixed-use retail area (excluding the urban park and public space). Under this scenario sponsors would derive increased sponsorship and branding value versus earlier estimates based only on the stadium and arena. The consultants undertook extensive research and reviewed comparable venues across North America with an emphasis on Canada.
The revised naming rights values also takes into consideration the value of the CFL team, the additional value from the retail area, proposed activities in the stadium and arena, and the addition of a Soccer Team at Lansdowne.
It is important to remember that the figure represents the estimated total revenue over the 30 year duration of the partnership - this amounts slightly more that $1 million per year, inflated over the 30 years."
So who's this consultant of OSEG's who arrived at this conclusion?
"The naming rights projected revenue has increased from earlier estimates as a result of the recommendations obtained by OSEG from their third party consultant, which is highly respected in their field and have expertise in this area. OSEG is currently in the process of selecting a consulting firm to execute the next phase of the naming rights and sponsorship program. Given that OSEG is currently tendering this next piece of work they do not want to bias the process by releasing the name of the previous consultant at this time."
City manager Kent Kirkpatrick said Wednesday he's spoken with the consultant in question, and is satisfied with the accuracy of the new, much larger figure. I still haven't managed to discover the identity of that mysterious individual. Perhaps a curious councillor will have better luck when Minto CEO Roger Greenberg faces the city's Finance and Economic Development Committee on Tuesday. Perhaps they won't. Either way, they'll be asked to vote to proceed with the Lansdowne deal.