Bombers in good financial shape, says Miller, after province pays off another $82M of debt

The president of the Winnipeg Blue Bombers acknowledges the deal to build and finance Investors Group Field was "complicated at the beginning" and became "more convoluted when it got tight on funding."

Wade Miller admitted on Thursday that meeting the football club's debt obligations of $4.4 million in interest payments and maintenance costs was a looming concern. Miller was not involved with the previous NDP government's negotiations on the stadium financing, 

"On an annual basis that would be a tough number to hit on an ongoing basis. And that's why you saw a loan-loss provision put in by the government for the Triple B loan for Phase 2," Miller told CBC News.

• Manitoba writes off Blue Bombers stadium loan
• No realistic prospect' for province to get back part of Investors Group Field loan

On Wednesday, the Progressive Conservative government announced it was writing down the Winnipeg Football Club's $82-million dollar share to construct the stadium. The government had written off another source of loan repayment last year as tax revenues from the former Canad Inns stadium site couldn't keep up with the interest payments.

In total, the government now says it has taken on $201 million of loans for building Investors Group Field.

The football club is part of a consortium including the province of Manitoba, the City of Winnipeg and the University of Manitoba, called Triple B Stadium Inc. 

• Investors Group Field to cost $376M with interest costs

It oversaw the construction of the stadium and manages the loans and tax remittances, and is also the plaintiff in a massive lawsuit for repairs and deficiencies at the facility.

The Bombers were in the unusual position of owing Triple B its portion of the loans to build Investors Group Field, while at the same time sitting on its board and managing the operations of the stadium.

As loan costs were about to rise, the football club had less revenue this year to draw on. There was no Grey Cup game in Manitoba, no FIFA World Cup soccer events and few big concerts.

"The swing that you can have is, is there a large touring act in Canada for a big stadium event? Is there a home playoff game for the Winnipeg Football Club? Is there a friendly match of women's soccer or FIFA or different events like that that we look to attract to the venue?" Miller said.

The football executive said the club is in good financial shape now that the province has stepped up.

"To create a realistic and viable long-term solution, that will address future capital needs and ensure the success of this stadium going forward the next 45 years," Miller said.

The Bombers will still be responsible to remit entertainment taxes and fees they collect and make a minimum payment determined by their deal with Triple B Stadium Inc. That figure won't be known until the club completes its finances next year.

Triple B Stadium Inc. chair Andrew Konowalchuk said despite the write-down by the Manitoba government, there will be money coming in to pay at least part of the loans.

"The board expects to continue to receive excess cash payments from the Winnipeg Football Club and payments from the city and the province in respect of the Community Revitalization Tax Increment Financing Act (TIF)," Konowalchuk wrote in a statement.

The City of Winnipeg says the property and education taxes on the Polo Park lands have generated over $4.5 million dollars between 2014 and 2018.

'This isn't normal, this is terrible'

The Canadian Taxpayers Federation is calling foul on the entire stadium deal.

"This happens too much in Winnipeg. It's starting to be something where people shrug and think this is normal. This isn't normal, this is terrible. This is $200 million that taxpayers are getting stuck with. People need to be held responsible and people need to know this won't happen again and that's the responsibility of the current government," CTF director Todd MacKay told CBC News. 

MacKay acknowledged the stadium finance deal was a creation of the former NDP government and doesn't blame the current administration for its inception, but says that doesn't let Premier Brian Pallister and his government off the hook. 

"Of course, the previous government under Greg Selinger deserves a lot of the blame, but they're not the ones in power anymore. It's the current government that has to bring forward those answers and show taxpayers exactly what happened," MacKay said.

While in opposition, the PCs had repeatedly called for a full accounting of the deal and how the stadium could be built with millions in repairs needed shortly after it opened.

A spokesperson for the PC government responded to the call for an inquiry, saying "we can assure Manitobans that nothing like this would ever happen under our Progressive Conservative government.

"The province has commenced a multi-year initiative to improve the transparency of its budgeting and financial reporting, particularly reporting that takes place outside of core government departments," the spokesperson wrote.

Lawsuit looms and grows

In March 2015, Triple B Stadium Inc. launched a lawsuit against stadium contractor Stuart Olson and architect Ray Wan.

The suit alleges the stadium suffered from poor or no drainage in some portions, it leaked and had little or no insulation in some areas.  

• Lawsuit alleges Winnipeg's IGF stadium leaky, mouldy
• Investors Group Field to get $35M in repairs thanks to loan guarantee from province

Earlier this month Stuart Olson expanded the legal action and named 53 sub-contractors and trade companies, many of them local, that worked on the project, claiming they were negligent and liable for millions in repairs done after the stadium was completed.

Konowalchuk said the bill for ongoing repairs after the stadium was completed has reached $23.5 million, but there is more work to finish.

"We are actively managing the completion of the remediation work that needs to occur at Investors Group Field.  The majority of this work will be completed this fall and off-season. We have a few smaller outdoor remediation projects that are weather dependent which will proceed next spring," Konowalchuk said.