Not all the pieces are in place yet, but the city of Edmonton and the ownership of the Edmonton Oilers (NHL) have agreed on yet another iteration of the framework of a $450-million new-arena funding deal — albeit one with a $100-million hole.
The plan calls for the Oilers to pay $100 million, $125 million from ticket taxes and $125 from a Community Revitalization Levy (CRL; similar to tax-increment financing in the United States), leaving a $100-million hole to be filled by the province — and the early reaction from Alberta MPs has not been positive.
Not much in this plan is actually new: these are the numbers that all sides have been working under for months now. What’s changed: the numbers are pinned down, and more specifics are emerging on smaller details.
First: the Katz Group is now committed to a 35-year lease, up from the original 30 year lease. The Katz Group will also cover all operating expenses and capital improvements at the arena.
The city will also work to eliminate Rexall Place as a competitor. Northlands had threatened to run Rexall Place as a competitor, going after the same concerts and events.
RELATED STORIES: Edmonton approves arena funding plan; Edmonton mayor lays out arena funding plan; Report: New arena needs 30-year commitment from Oilers; Complicating factor in Edmonton arena discussions: Northlands; Seat mortgages pitched for new Edmonton arena; City: New Edmonton arena would revitalize downtown; Oilers: No, we’re not moving to Quebec City; Oilers refine arena plan after public meetings; Katz ups arena offer to $200M; city willing to talk; Edmonton: New downtown arena financially feasible 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
Sign up for the free weekly Arena Digest newsletter and keep up with the latest happenings! You can sign up here.