## The following analysis is based on numbers from my opponent’s web site but with adjustments to match reality.

**Total cost of an underground hockey arena with underground parking for 40 cars $22,000,000 (**It will probably end up costing more but we will accept my opponent’s number).

My opponent says we will get a government grant of 2/3 since that is what Westmount got for their underground arena. **However, Westmount got $20 million but the final cost ended up being $40 million so the grant ended up being 50%.** Further, even getting a grant is not likely for many reasons, but let’s assume we get a 50% grant.

So we will deduct $11 million leaving a net cost of $11 million.

That will be financed over 20 years. ** The Libcorp report**, which my opponent referenced,

**used an interest rate in their scenarios of 5%. Given that the law requires refinancing every five years and that interest rates are not likely to remain as low as they are today, this is a reasonable average interest rate for the life of the loan.**My opponent uses an unrealistic rate of 2%. We will use 5%.

This works out to $500 per year for each taxpayer for 20 years.

My opponent says there will be no net operating costs. **However, all the towns that we consulted said that they have net operating losses of $300,000 – $500,000 annually on their arenas.** We will take $400,000 as the annual loss. That represents another $200/year per taxpayer forever.

**Taken together we get $700 per year for each taxpayer for the next 20 years and continuing operating losses of $200 per year for each taxpayer after 20 years.**

Since only 10% or 200 of our hockey families will use the arena, **this represents a subsidy of $6,500 per year for 20 years given to the hockey families by all the taxpayers of the Town of Hampstead.**

This is grossly unfair. If I am re-elected, **we will look into the possibility of a hockey arena, above ground**, and many other options, **but I am committed to no local tax increase above inflation for the next four years**.

Therefore, we will not even consider an underground arena as it is obviously, too expensive.