Guys bought a team and tried really hard to get someone to build them a rink for free then be able to own it outright after.
They came at the Urban reserve group with a plan. That plan was you guys get the funding and build a 5000 seat arena complex with 2 side rinks at a cost of about 75 million then hand it over to us because we know how to run a business and you don't and we will pay you a fee after.
I know they run crappy call centers but these guys seem like really slimy car salesmen
Frankly, you have absolutely no idea what you're talking about. I haven't been in HF boards for a while and came to check some Jets trade rumours. This actually angered me.
Greg Fettes is a close personal friend of mine.
He paid out of his own pocket for all the renos at U of M which the University benefits from. They absolutely had plans to build a new rink. They didn't even make it through one season before Covid cancelled (March 2020). The 2nd season was cancelled altogether. The third season was near normal (aside from the mask mandates and vaccine QR code checks).
Here's the truth: Construction cost for a new facilty rose from ~45mm (pre-Covid) to nearly ~70mm (post covid). Interest rates went from 2.5% to nearly 6.5% on commercial projects. At 70% financing, the project went from:
Pre-Covid
45MM facility @ 30% equity = $13,500,000 cash
Annual carrying costs @ 2% = $650,000 per year
Post Covid
70MM facility @ 30% equity = $21,000,000 cash
Annual Carrying cost @ 6.5% = $3,200,000 per year
All of a sudden, you need 21mm in cash (instead of the 13mm) and the carrying costs on a new facility jumped to $3,200,000 per season!
Since you're so involved with the Urban Reserve, you must know that none of the land will ever be sold. There was no way for Fettes to buy the land. The Urban Reserve will own everything on that property and lease it to owners. It's nonsense to think that anyone will build a sports facility with private money on land they don't own. They could never *sell it* to anyone. The plan was a long term lease if it came to fruition.
They also had another location (near Route 90) where they had an option on land and explored every option to make it work but the costs of building post-Covid made it impossible.
Lastly, the reason it all collapsed so quickly was because they had a major plan to blow out a wall of Max Bell, build a half bowl, new concessions, washrooms, observation area. The price tag was $20,000,000 and was fully financed by the Ice owners. It would have brought capacity to 3800. The U of M was 100% onboard. They presented this to the WHL board as a last ditch alternative to a new building. The WHL formally rejected this proposal only 14 days ago stating it didn't meet their standard of 5000 seats. That was the nail in the coffin.
This is the true story of the Winnipeg Ice.
Fettes is an incredibly generous man and has given so much to this city. There isn't a cause or fundraising drive that happens in this town without him being a major donor. They have 25,000 employees and are by far the largest contact centre in the world with offices is dozens of countries. He chooses to make Winnipeg home and keeps in 247 InTouch headquarters in Winnipeg.