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Thursday, October 28, 1999
The game isn't over yet
The Ottawa Senators majority owner knows the game isn't over yet, but he is one step closer to winning his battle for tax fairness and assuring his club's viability in the nation's capital.
Bryden said the Ontario provincial government's decision Thursday to allow municipalities to reduce the property tax on buildings like the Corel Centre could be the move needed to break a logjam among the various levels of government.
"I think this is a big breakthrough," he said before the Senators played the Calgary Flames Thursday night at the Corel Centre.
"I can see a combination of initiatives at the municipal, provincial and federal levels, combined with those already announced by the league, allowing the team to remain here for a long time."
The move allows private recreational facilities like the Corel Centre or the Air Canada Centre in Toronto to be taxed at the same level as municipal facilities. Bryden pointed out the Civic Centre, where the junior Ottawa 67's play, and JetForm Park, home of Triple-A baseball's Ottawa Lynx, are not taxed.
Bryden said Thursday's announcement could save the Senators up to $4.2 million if the City of Kanata reduced the Corel Centre tax to zero.
Bryden is looking for the Senators overall tax burden to be reduced by $10-$12 million.
He said he figured he is already on the way to saving $3.5 million in provincial amusement taxes since Senators games are now presented by the club's charitable foundation, making tickets exempt from the tax.
The Senators now need the federal government to step up the table, said Bryden, and the best way for it to do that is to help the club deal with the additional operating costs the club incurs because of the weak Canadian dollar.
The federal government's policy of maintaining a weak Canadian dollar benefits most of the economy, said Bryden, but hurts the Canadian NHL clubs who pay out player salaries - their biggest expense - in U.S. greenbacks.
"We need some from relief from the effect of the exchange rate," said Bryden.
Thursday's developments were significant because they shift part of the battle for tax fairness into the Senators' backyard. The municipality now can make the call and Bryden already has emotion and many citizens on his side.
The provincial decision allows municipalities to make their own call on what the tax rate will be, so if there is no political will in Toronto to reduce the taxes on the Air Canada Centre or SkyDome, it won't affect what happens in Ottawa.
The province's decision Thursday shifts the battle onto Bryden's turf where his odds of winning are more in the Senators' favour.
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