Some councillors support $700K contribution to keep IceCaps

The City of St. John's insists money that's set aside to help keep the IceCaps in town is not a subsidy but one councillor says the $700,000 that was approved in a private meeting on Monday will help subsidize the costs of the team.

The money will go to St. John's Sports and Entertainment, which runs the Mile One Centre.

That group will in turn cut rent and other fees incurred by the IceCaps to the tune of $700,000 over the next two years.

Coun.Danny Breen said it's money well spent.

"What we're doing here is making an investment in keeping AHL hockey here in the city, and keeping Mile One active, and getting us to the point where we can have a longer term tenant," he said.

Breen said the private councillors' vote on the issue was not unanimous.

Coun.Jonathan Galgay said he also supports the city's contribution to keep the IceCaps.

"For me, it's about economics, it's about providing jobs, all types of employment from vendors inside [Mile One], to clothing, and the downtown business," he said.

Stanford says extended season meant hefty price tag

Meanwhile, Glenn Stanford, the chief operating officer for the St. John's IceCaps, said the deal came about as a result of the extension that was offered by the Winnipeg Jets.

The team was going to end its affiliation with its St. John's farm team at the end of the upcoming 2014-2015 season, but offered to extend it for another year.

Stanford said that offer came with a hefty price tag of $1.5million.

He said it's not unusual for teams to try to renegotiate rental agreements.

"I can tell you that there are 30 teams in the American Hockey League. Our rental agreement is in the top tier of the AHL," he said.

"I think that the partnership that we've had moving forward with the reduction in the rental is good for both parties, because it keeps this building open, it keeps hockey in St. John's. So, I think it was a great business decision, quite frankly."

Stanford admitted that it's expensive to keep professional hockey in St. John's.

He said aside from the rental agreement, the IceCaps pay the highest for travel in the AHL. The team also has the most expensive affiliation agreement with theNHL, and it pays $500,000 every year to visiting teams.

Memo shouldn't have been leaked: former councillor

Former St. John's councillor Keith Coombs said current Coun. Art Puddister should not have leaked an internal memo to the media.

The memo outlined the city's rationale for the subsidy.

Coombs said he believes he knows why Puddister gave the memo to CBC News, but he questioned the motives.

"The guy who favours the subsidy tries to make political points by releasing it. Why? I mean, he knows it as well as I do, that they were in negotiations that this process is not completed, as far as St. John's Sports and Entertainment is concerned," he said.

Meanwhile, Puddister said he leaked the memo in the name of transparency.

"The public have a right to know how their money is being spent," he said.

"If it had to go through budget discussions, the public would not find out about this until December. If city council is going to spend $700,000 of their money, they have a right to know, and they have a right to know right away."