Former Mayor Larry Di Ianni and Mr. Ecklund's daughter Erika

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LARRY'S CORNER- Hamilton's Former Mayor Speaks

former Mayor of Hamilton, Larry Di IanniImpoverishing the Future

By Larry Di Ianni
(posted February 20, 2009)

Let me be clear, I think Council should resoundingly support the Pan-Am Games bid. I look for a strong 14-2 or 13-3 vote in favour. Anything less will be tepid support that won’t look good in the eyes of the Province or the Bid committee, signalling weakness from Hamilton. Now is the time to rally behind Fred’s leadership on this issue.

I also like the choice of location for a new stadium and wrote about it on this blog back in October of 2007. Anticipating a search for sites, I stated:

“The waterfront area figures prominently as one of the favoured alternatives.

Not the vast park area which is currently owned by the city, but another area, owned privately and already the subject of some press speculation. This location no longer serves its intended purpose and is begging for some adaptive reuse.”

Of course, I was referring to the area privately owned by some residents and a private company no longer in business at the corner of Bay and Barton. This site will revitalize the west harbour, and can nicely accommodate a stadium if the traffic issues can be resolved, as I am sure they will be.

I also believe Pan-Am will create community spirit, leave legacy projects for generations to come, and bring jobs to our needy economy.

So, what’s my beef? The concern I have is over the funding of these games. Staff and the mayor have suggested that the $60M contribution come from the Future Fund so that taxpayers will not take a hit. This is not the right source of money for these games. Worse than that, it suggests that the money is ‘free’, when we all know that there is no such thing. Buying this message is akin to believing the e-mail messages from Nigeria telling us of the million dollar fortune awaiting us just for the asking.

To remind ourselves, the Future Fund was established under the tenure of Mayor Bob Wade on the delivery of $137M from Hydro dividends to provide a lasting legacy in perpetuity for the citizens of Hamilton. The Council of the day used some of the money for immediate projects and banked $100M so that future generations could count on the interest from that money to advance economic, social and environmental programs in the city. During my term, we borrowed some money from the fund to construct a compost facility but put plans in place to pay the fund back so that the original intent could be maintained. Now, if the fund is drained in its entirety, the original goals which Council established will be contradicted. That is short-sighted.

A stadium is of course important. Replacing Ivor Wynne is overdue given that it was constructed before any member of Council or the current administration was even born. The stadium has served us well, but the $15M needed to upgrade it over the next number of years is throwing good money away on an unsustainable venue. We need to keep the TiCats in town and we need a new venue. The fact that Bob Young and others will help fund the stadium expansion from 15,000 seats funded by Pan-Am to a 30,000 seat facility to accommodate a professional sports team is important. What isn’t important is the depletion of the Future Fund. One legacy for generations to come isn’t as good as many legacy projects for all generations to come.

What should Council consider then? The first is to make sure they don’t convey to taxpayers that anything is free. The $60M belong to the taxpayers and using it is costing them directly, if not in the current tax bill, then certainly in the projects they will have to fund in the future because the Fund isn’t there to do it. Secondly, Council should consider replenishing the fund, just as my Council did when it built the environmental facilities. Rather than borrowing from a bank, Council can use the Fund as a bank with all the obligations of repaying it over time. This will make the money available and it will maintain the integrity of the Future Fund. Or, if Council really wants to be brave about it, a Pan-Am surcharge can be added to the tax bill over the next few years. This will truly test Hamiltonian’s support of the games if on their tax bill they see the impact of that support to their pocketbooks. My guess is that most Hamiltonians can live with this option but will prefer the replenishing of the Fund over time.

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