NEWS
metronews.ca Thursday, January 24, 2013
03
Big hole
Provincial cash missing from deal
RYAN TUMILTY/METRO
On the web For more local news got to metronews.ca
NEWS
While there was much jubilation about a new deal on the downtown arena, there’s still a $100-million hole in the agreement. As in previous versions of the deal, the new arrangement sees $100 million coming from the provincial or federal government to help build the facility. The lack of funds raised some significant concerns among councillors. “This deal is not even supposed to proceed without provincial money and we don’t have that after two years of begging for it,” said Coun. Kerry Diotte who voted against the deal. Coun. Tony Caterina voted for the deal, but implored city administration and the Katz Group to come up with a plan B in case the province didn’t come to the plate. Mayor Stephen Mandel said he has discussed the issue with provincial politicians and he is optimistic. “Minister (Doug) Horner said over the Christmas season that he will hopefully come up with a program,” he said. Horner’s spokesperson Robyn Cochrane said there would be no direct funding for the arena, but the province is considering a program to help with special community projects. She could not say if it would be in the budget. “Our government is working through some difficult financial times so at this point we can’t say whether it will be included in budget,” Cochrane said.
Edmonton Oilers Shawn Horcoff and Taylor Hall show their support for the arena deal at council on Wednesday. The new deal could see construction begin on the downtown arena project as early as this summer. RYAN TUMILTY/METRO
New deal resurrects city’s arena project Done. Project a major investment by city RYAN TUMILTY
ryan.tumilty@metronews.ca
The deal that resurrected Edmonton’s downtown arena Wednesday will keep the Oilers in town for the next 35 years at least, but will come with a major city investment. The deal, which came before council after the city restarted negotiations in December, is largely similar to the one they first struck in October 2011. Among the changes are
bad credit? no credit? i can help! You Deserve It! I Guarantee It!
the Katz group will now receive $1.5 million annually for major capital maintenance costs in the building, from the proposed ticket tax. The deal also includes a provision for $2 million annually in advertising from the City of Edmonton, while revenue from the naming rights for the building will go to the Katz group. Under the deal the city will pay $219 million for the project, mostly from increased tax revenues related to the arena development. The Katz Group is on the hook for $143 million, a ticket surcharge will cover $125 million and other levels of government will contribute
2008 dodge 3500 mega cab 6.7 diesel
2r32151a DVD, sunroof, leather
25,95100
$
or
214BW
$
Call
• The $601 million price tag includes the arena, a community rink, an LRT connection, the Winter garden pedway and a pedestrian corridor. • The deal envisions opening the arena in time for the 2016-2017 NHL season, which would mean the Oilers would have to extend their lease at Rexall.
$114 million. Edmonton Mayor Stephen Mandel said Edmontonians have got the idea
2004 dodge srt4 1ch2438a mint
986000
$
or
that the city will be out of tax dollars, but he reiterated that taxes will not be raised for this project. Coun. Linda Sloan said this deal shut doors for the city, because it meant there was less money for the city to use in the future. “There’s an opportunity cost, public dollars will be used for a private business,” she said. Coun. Kim Krushell said when council dug its heels in last October, it sent the right message. “They pushed us and we pushed back and when both parties are not completely satisfied that’s when you normally get a good deal,” she said.
Deal details
125BW
$
2008 dodge nitro 4x4 2gh8217a 84,000 kms
14,85100
$
or
125BW
$
brad 780.951.1657
Yellowhead & Broadmoor, Sherwood Park
Brad McDo nald