Combine a $5 ticket surcharge with a $100-million contribution from Edmonton owner Daryl Katz, and you’ve reached the point where a new downtown Oilers arena is economically viable, say city officials — raising the stakes on new-arena discussions in the city.
â€œA new downtown arena with an increase in the number of seats and other amenities can increase the revenue available to the team, thereby enhancing the teamâ€™s financial competitiveness,â€ the report says. â€œAs well, existing city financial commitments to the operations at Rexall Place may be transferred to the operations of a new facility.â€
The city already subsidizes Rexall Place to the tune of $6 million annually. Combine that with a ticket surcharge, the Oilers’ contribution and the Canadian equivalent of tax-increment financing (it’s called a revitalization levy, which would divert new property taxes from the arena area to the project), and you have funding for a new downtown facility that would cost upwards of $450 million.The revitalization levy may end up generating far more revenue than is currently projected: currently the expectation is that $500 million in new development would occur in the area, but Katz has already proposed a billion dollars of development on his own.
The next step in the process: Katz himself may appear before the Edmonton City Council next week to more fully flesh out his proposal.
RELATED STORIES: Katz: I will spend $100 million on new downtown arena; Edmonton: Cheaper to renovate than to build new downtown arena; Oilers arena zoning hearing delayed; Katz group submits arena application to Edmonton
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