Without CFL or big events, discussion needed on Mosaic Stadium financing: Councillor

In the absence of a CFL season and with continued uncertainty surrounding mass events, a Regina city councillor believes a discussion is in order between the funding partners of Mosaic Stadium.

The project cost of the 33,000-seat building was $278 million, split between the City of Regina ($73 million), the CFL’s Saskatchewan Roughriders ($25 million) and the province ($80 million).

The remaining $100 million was financed through a loan to the city from the province, with the principal to be repaid through a $12 stadium fee charged on every ticket to Riders games. The term of the loan is 30 years.

“I expect in the coming weeks and months that the three partners will sit down and have a serious discussion about the way forward and how we can handle the financial impact,” said Coun. Mike O’Donnell.

While the CFL season was cancelled only this week, it was apparent there wouldn’t be any games played in Regina when Winnipeg was announced as the league’s hub city, back when there was still hope of a shortened season.

A year without games, without events and without any income at all is going to affect the loan repayment “significantly,” O’Donnell said.

At the time of the funding agreement in 2013, O’Donnell said the parties expected revenues to ebb and flow over a 30-year period. Some years might have brought smaller crowds; other years, crowds might have grown from hosting big events like a Grey Cup.

“We thought we were being wise by setting a 30-year time frame,” he said. “I’m not sure it would be fair to other partners to say we thought there would be a year where nothing would happen. So I’m not sure that was ever considered in terms of a pandemic, so this is unique.”

A once-in-a-lifetime event like a pandemic would “certainly offer the ability to have a re-look at things,” O’Donnell said.

He’s hesitant to consider raising the stadium fee but floats the idea of re-examining it when the loan reaches maturity.

But there’s more than just football to consider. It’s anybody’s guess when there will be large events like concerts, from which the city would be able to collect a General Facility Fee that would go toward loan payments, maintenance or upgrades.

“I still think of the Garth Brooks concerts,” O’Donnell said. “People were all over the place in terms of being packed in there and so on. I’m not sure there’s going to be a lot of comfort to do that in the future.”

Whenever discussions are held, O’Donnell said everybody should be prepared to give a little.

“In life, if you use the word ‘fair,’ that’s usually the way it kind of plays out,” he said.