Edmonton will cut the ribbon Thursday on what it calls North America’s next great arena for its National Hockey League team. But that greatness comes at a cost. Here is a look at who is paying what:
Total cost: The final tab is almost $614 million which includes the arena, the land, a massive glass “Winter Garden” that stretches over the street in front, a community rink attached to the building and a connection to the city’s light-rail transit system.
Taxpayers: The city is paying almost $313 million with much of that coming from a so-called community revitalization levy, which will see a portion of downtown property taxes redirected to the project. The city will own the building, but will lease it back to the Oilers and the team’s owner, Daryl Katz.
The team: The team is paying $166 million. Some of that is in cash, but most of it comes from rent payments to the city. The team will retain all the revenue from the operation of the building. Katz, in turn, has promised to keep the Oilers in Edmonton for at least the next 35 years.
Fans: Each person attending an event will have to pay a ticket surcharge. The deal calls for the proceeds to go to the city and be sufficient to cover the principal and interest payments, repaying $125 million over a 35-year term.
Watch below: Across the National Hockey League, teams and fans dream of a new arena. Edmonton’s is a reality, but getting the more than $600-million project built took some backing and bankroll of the city. Kendra Slugoski reports.
(Source: City of Edmonton)