There’s no doubt it’s one of the most popular summer festivals in Edmonton. In fact, K-Days saw a 2.3 per cent increase in attendance this year.
READ MORE: K-Days and Heritage Festival celebrate big turnout, successes in 2016
Still, that isn’t ensuring the event’s future, considering Northlands is trying to re-imagine itself without the support of an NHL team.
“If we can’t find some time – which is really what we’re asking of council – then we will be in a position that this may very well be our last K-Days,” Northlands CEO Tim Reid said Tuesday.
Northlands is looking for roughly $48 million in debt forgiveness from the city related to the Edmonton Expo Centre as well as an investment in its redevelopment strategy.
City Council has until the end of August to approve Vision 2020.
READ MORE: Northlands asks City of Edmonton to forgive $48M debt during pitch to council
“With the transition to Rogers Place, you’re going to take $1.5 million visitors away from this neighbourhood and move them downtown,” Reid explained. “If you build six arenas here, you’re going to introduce 1.6 million visitors, so then the community is equal in terms of an activation standpoint.”
The Edmonton Oilers are moving into the new Rogers Place arena downtown. Northlands is looking at ways to repurpose Rexall Place – along with its other facilities. It recently pitched its Vision 2020, which includes everything from a lacrosse field and outdoor concert space, to indoor and outdoor skating rinks. The redevelopment plans include three major projects, one of which includes the renovation of Rexall Place into the “Northlands Ice Coliseum.”
READ MORE: Cost of transforming Northlands pegged at $85M
Reid said it takes a large non-profit organization to put on an event as successful as K-Days.
“Over 800,000 Albertans came out to spend time at K-Days,” he said. “That’s a strong statement when you see so many other fairs that are struggling with attendance, either because of weather or the economy. The value of K-Days stays strong.”
“My hope is that it’s a reminder to mayor and council that, as we look to a significant investment in our downtown, we can’t forget about the northeast and we can’t forget about Northlands.”
But the new arena is changing the business model for Northlands and without the Oilers as a tenant, it’s trying to find ways to remain sustainable.
Without the city’s support of Vision 2020 – in some capacity – Reid said 2016 “could very well be” the last K-Days.
“Our board of directors has been clear with our messaging that if we can’t find a path forward where we as Northlands offer value, not only to the northeast, but also to Edmonton and northern Alberta, then we’d wind down our business.”
“We think Vision 2020 gives us an opportunity to enhance the city, as well as make sure that Northlands is sustainable and pay back our debt, but we do need some time to be able to find that vision,” Reid said.
The loan payments for the Edmonton Expo Centre are around $4 million per year, and Reid said the facility loses about $3 million each year.
Northlands has been able to make payments up until now because of the revenue coming in from Rexall Place. However, with the Edmonton Oilers and concert industry moving out, Northlands estimates its earning will go from $9.3 million to $600,000 in 2017.
READ MORE: Future of horse racing up in the air in Alberta
This year will also be the last time Northlands will host the Canadian Finals Rodeo. Negotiations were underway to have the event moved to Rogers Place, Reid said. however, in July, it was announced the event would be heading to Saskatoon from 2017-2019.
READ MORE: Canadian Finals Rodeo heading to Saskatoon
Watch below: Northlands hopes the momentum from another successful K-Days will send a clear message to city council that when it comes to investing in the future, councillors should look to the northeast. Shallima Maharaj has the details.
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