EDMONTON – Following a private council meeting, Mayor Stephen Mandel told media the Katz Group had requested more public funding for the downtown arena project, but council remains committed to the original funding agreement.
In response to the Katz Group’s recent requests for additional public funding, city administration will notify the Katz Group that Council remains committed to the negotiated framework approved by City Council on October 26, 2011.
Mandel clarified the latest update does not mean the Katz Group is backing out of the agreement, however, he says Council will stick with the original funding model.
“Council is willing to stand behind the motion that was passed in October,” says Mandel.
“I feel the October motion went a long way to ensuring what council’s vision was,” he says; adding the agreement was beneficial to all parties. He also said the Edmonton Oilers organization and team are valuable assets to the city.
The Mayor says now, the ball is in the Katz Group’s court.
“We need to move through the process expeditiously,” adds Mandel, “the sooner the start the better.”
Currently, the $450 million arena project has a $100 million shortfall.
Mandel would not specify how much money the Katz Group was requesting.
He added the province has been supportive of the city in this endeavour, and there may be funding available for the arena through some new provincial programs.
“The province … they’re getting closer to coming up with a solution,” says Mandel. “The challenge is coming up with funds for facilities like the arena project.”
“We’re very confident that program will be in place,” he says, adding, the “province has been a great supporter of the issue.”
Tuesday night, several sources told Global News a major roadblock could put an end to the arena project; indicating the major issue is related to taxes and how to pay for a shortfall of $100 million.
Earlier this summer it was announced the arena could cost just under $500 million to build. The Edmonton Chamber of Commerce says the cost could rise significantly with inflation.
Edmonton city councillors discussed the issue Wednesday in an in-camera session during their regular city council meeting.
Now, city council will wait for a response to the motion from the Katz Group. Mandel says he is not optimistic.
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“Frustrated might be a better word. But you know, i’m optimistic that we can, in the sense of let’s get back together and see how we can make this work.”
Mandel also spoke about the $100 million shortfall, saying they are working with the Province on various programs.
“We believe they are getting close to coming up with a solution that would deal with the realities of every town and village and city in the province of Alberta, who have challenges coming up with funds for facilities like the arena project or like a new Winspear centre, or things like that, and so, they’re working on a program for that and we don’t need the money today. But, we’ve been very confident that that program will be in place and would allow us to get that kind of funding needed from the Province.”
Wednesday afternoon, a letter from the Katz Group to the City Manager was released. Read it below:
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