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BC: Abbotsford Heat Suck up $3.5 Million in Corporate Welfare

Author: Jordan Bateman 2012/11/02

If other cities want a text book example of what NOT to do when it comes to building arenas and attracting sports teams, look at Abbotsford.

The property taxpayers of Abbotsford, several years ago, approved a double-digit, 20-year tax increase to fund three projects—a 7,000 seat arena, a community rec centre and a cultural centre. Originally projected to be $85 million, overruns ballooned the cost to more than $112 million. An Abbotsford property owner with a $500,000 house paid $165.61 this year just for the construction cost of those three facilities—let alone all the subsidies.

The subsidies are even more offensive—particularly the corporate welfare being handed out to the American Hockey League’s Abbotsford Heat, a locally-owned subsidiary of the Calgary Flames.

Due to ridiculously poor negotiating by Abbotsford, city taxpayers are on the hook for losses incurred by the Heat. And these are adding up quickly:

  • 2011-12: $1.76 million
  • 2010-11: $1.305 million
  • 2009-2010: $450,637

That’s $3.5 million over three years that could have been spent on kids’ sports programs, critical infrastructure, public safety or left in taxpayers’ pockets. Instead, it went to professional hockey players and a private business. Corporate welfare, period.

The Heat aren’t even close to breaking even—they need to grow their average attendance by 50 per cent.

The Abbotsford Today news website has been doing a stellar job covering this story for the past five years. Check them out—and start here.


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