Extensions of agreements between the Raptors and the City of
Toronto and Marathon Realty over a new C$200M arena project are
due to expire on September 30 which will result in a C$1M fine
for the team for the second consecutive year, according to Craig
Daniels of the TORONTO SUN. Without agreements in place, the
team can not close its property purchase from Canada Post, owner
of the stadium site. One source close to the talks noted that
"if they can't close, they can't build." NBA Deputy Commissioner
Russ Granik told the CANADIAN PRESS, "Certainly, if September 30
comes and goes, we will be watching." Team President John Bitove
confirmed the September 30 fine date, but called NBA concerns "no
big deal." According to a source close to the project, financing
is not the reason for the delays: "The money is there. The
problem has been getting the team's board to agree to financing
terms." Construction on an arena would have to begin by early
November in order to be ready for the '98-99 season and another
extension on the September 30 (TORONTO SUN, 9/20).
ARENA IN JEOPARDY? The NBA's Granik said penalties --
financial and others -- could be "imposed should the startup of
the project" continued to be delayed. The fine "should be the
least" of the team's worries, according to Doug Smith of the
CANADIAN PRESS. Besides the fine, "bigger concerns are
agreements that won't exist in perpetuity." Raptors President
Bitove "could not say how many of the more than 200 legal
documents would unravel if another construction deadline is
missed." On reported speculation concerning a deal to share a
facility with the Maple Leafs, Bitove said, "We have not had any
serious discussions with the Leafs." Bitove also ruled out
tenancy with the Leafs: "We're building ... so there's no point
in discussing tenancy with anyone" (CP/Toronto GLOBE & MAIL,
9/20).
