Toronto city council has given its unanimous approval for a $1-a-year lease for the city's expansion WNBA team, owned by billionaire Larry Tanenbaum. The lease, which was approved by Mayor Olivia Chow and every councillor present, will see the Toronto Tempo build parkland and a $100-million practice facility on a parking lot near the waterfront.
The deal is expected to result in the city forgoing roughly $500,000 in parking revenue and taking on an estimated $800,000 in new annual costs. However, the city will receive a one-time payment of $2 million in Year 5 of the lease. While the city has refused to publicly put a value on the land involved, estimates suggest it could be worth between $10 million and $15 million.
City Manager Paul Johnson defended the deal, stating that it is a "market-based lease" and that the city is not selling public land. He also highlighted the benefits of the deal, including access to indoor and outdoor amenities, guaranteed community use hours, and public space.
Councillor Michael Thompson, who asked Johnson to confirm that the deal is "not a giveaway," was one of the 21 councillors who voted in favor of the lease. Thompson described the deal as an investment "in women's sport, professional sport" and stated that it is "not only parity but equity in terms of the investment in this facility."
The only criticism of the deal came from Eglinton-Lawrence Councillor Mike Colle, who expressed concerns that the practice facility would be built downtown. Mayor Chow, however, was enthusiastic about the deal, citing the unifying power of sports and the city's success in hosting the World Cup.
The parking lot to be leased by the Tempo will be used for the CNE this summer before the lease begins on September 15. The Tempo are owned by Tanenbaum's Kilmer Sports Ventures, which recently sold its 25% stake in Maple Leaf Sports and Entertainment to Rogers Communications for $4.35 billion.
