It's local news, I'm absolutely positive it's just raw numbers. $1.16 billion paid and ~$11.6 billion in total estimated revenue over 75 years. No reporter is doing discounted future cash flow calculations even if they know how to (they don't).
So when the report says “10 times what they paid”, it means “10 times the amount the $1B would be worth in 75 years at the currently-forecasted risk-free rate of return”?
I can’t imagine that’s true, but who knows I guess.
10 times the inflation adjusted number seems to be the implication.
However, the company receives money every year not a single lump sum at the end. If I lend you 10$ and you agree to pay me an inflation adjusted 1$/year for 100 years that’s vastly better than getting an inflation adjusted 100$ in 100 years.
In the initial example the first dollar is discounted X%, the second X%^2, the third X%^3… Where getting paid an inflation adjusted 100$ after 100 years is fully discounted X%^100. The first case is equivalent to a bond paying nearly 10% + inflation with annual payments where the second is closer to 4.7% + inflation without annual payouts.
PS: Further it’s ~zero risk as the contract states the city is responsible if revenues fall below projections.