Proposed Markham arena draws Chinese investor interest
A Toronto firm confirms there has been a "very preliminary" offshore look at the proposed landmark project.
Unidentified Chinese parties are showing “very preliminary” interest in investing in Markham’s proposed landmark arena project, according to a Toronto firm representing them.
LOH Architects and Associates, which has worked on projects here and abroad including China, revealed Tuesday it had met Markham Mayor Frank Scarpitti about two months ago, but the firm was still waiting for more information to assess any possible investment in the controversial $325-million project.
“It’s so very preliminary,” Joe Loh, the firm’s principal and director, said in an interview. “It’s in their court. They haven’t provided us with much information.
“There’s not much we can do until we see more. The mayor is running the show. It’s in their court. We’re not out of the starting blocks yet and off to the races.”
The overture adds a new twist to the continuing intrigue surrounding the proposed project, which has dominated Markham politics for more than two years.
The most contentious issue involves public funding for the 20,000-seat project near Highway 407 and Kennedy Rd. In January, Markham council narrowly voted in favour of a financial framework whereby the city and the private sector would share the cost of construction.
Veteran Markham councillor Gordon Landon said he hopes the Chinese investors could make a proposal before council meets next month, since pressure is building for a decision.
“There is further interest from the private sector and preliminary meetings have taken place,” Landon said in a note on his website. “At this point, it is impossible to say how the framework would change, but I would assume the city’s involvement would be minimal or nonexistent.”
Ratepayer groups continue to fight any arena cost-sharing arrangement, saying it could expose ratepayers to higher property taxes and leave the city with less money for necessary infrastructure and social improvements. If council favours the formula, the groups vow to make it a major election issue next year.
The groups welcomed the idea of possible outside investors for complete private ownership.
“If a private investor or investors are interested, it would be great, so long as the city and taxpayers have no involvement in an arena whatsoever,” said Karen Rea, president of the Markham City Village Ratepayers Association.
Scarpitti could not be reached for comment on the initial overture from LOH, which works with commercial and institutional clients.
The city is currently negotiating a “memorandum of understanding” in a unique partnership with the private partners. But those talks have dragged on for months with no progress updates for city council.
That has led to speculation that the parties cannot reach a deal, including a long-term lease that makes the arena financially viable for the private sector and protects taxpayers from any losses.
Arena promoter Graeme Roustan, the chief executive officer for GTA Sports and Entertainment, disclosed in a statement for the first time this week that his company is preparing a “comprehensive” draft proposal on a deal for council’s consideration in late November.
That came a few days after Deputy Mayor Jack Heath, who doesn’t support public funding for the project, submitted a motion for council next month whereby the city would rescind the current financial cost-sharing structure and stop staff work on the project.
Under the proposed arrangement, Markham would borrow $325 million and the private partners would pay back half over 20 years. The city would raise its share of the cost through development charges and user fees. The private partners would operate the arena and the city would own it.
A senior official for Remington Group, the major private sector partner in the project, did not respond to a request for comment on the possible interest of Chinese investors.
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