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Edmonton city council postpones downtown arena decision

EDMONTON – Less than one hour after Wednesday’s city council meeting began, councillors had voted to refer the downtown arena project back to city administration to suggest solutions for the missing $55 million.

Council voted to re-examine the arena project and the possible solutions “as soon as possible.”

When the item was brought up, Councillor Jane Batty asked that two main arena motions be referred back to administration, saying city council was not quite ready to debate the issue.

City Manager Simon Farbrother told council “a few days or a couple of weeks” won’t delay the project’s construction schedule.

“Physical construction has to start spring of next year,” he said. “With a project of this magnitude, interest rates” are also a factor, he added. “It makes sense to hear some conclusion.”

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Councillor Batty added she would like city administration to come up with new solutions for the remaining $55 million still needed for the project, and report back to council as soon as possible, not necessarily on a regular city council meeting day.

Councillor Don Iveson brought forward a motion to make a decision on the arena at the May 22 council meeting, however, after hearing council was eager to make a decision – potentially before May 22 – he withdrew his motion.

“At some point in time, it has to come back and get done,” stressed Mayor Stephen Mandel. “We need to come back… and vote on something, yes or no.”

He added that “setting dates have been getting us into trouble,” and explained he doesn’t want to set an expectation that a solution will be decided on by a certain date.

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Councillors Dave Loken and Karen Leibovici voiced their opposition to setting a fixed date on the debate and would rather re-examine the issue as soon as possible financial solutions are established by administration.

“I don’t want to tie our hands on this any further,” said Loken.

Councillor Kim Krushell agreed.

“I think putting a specific date of May 22… might be a little premature.”

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“I do believe we need to move this quickly,” stressed Mandel. “I realize Edmontonians would like this settled. Before us today is not a solution.”

“We will come back… I hope administration will come back with a solution. And whatever that solution is, we’ll have to vote on it,” he added.

Mandel also apologized to citizens for the delays.

“One way or another, it’s gone on way too long.”

During the discussion, Councillor Kerry Diotte said members of the public have been telling him they think the Katz Group should come up with the remaining funds needed for the project.

A spectator in council chambers yelled out; telling council to put the arena issue to plebiscite.

Mandel quieted the room and stressed respect for all parties is necessary in this debate.

Just before 10:30 a.m., council voted unanimously to defer debate on the arena and have city administration come back to council with funding solutions as soon as possible.

After the decision, John Karvellas, executive vice president of the Katz Group would not respond to questions about whether the Katz Group was considering contributing the missing $55 million.

He added, on a scale of one-ten (ten being the most worried) his concern level about the arena deal falling through is about a three.

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Council was scheduled to debate Wednesday a recommendation from city administration to give final approval to a master agreement with Oilers owner Daryl Katz that doesn’t specify the source of the remaining arena money or $14 million to complete the adjoining community rink.

The $480 million project is still missing $55 million in funding.

Follow the Edmonton arena discussion on our live blog, which will begin at 9:15 am Wednesday. You can watch a live stream of the city council meeting here.

 

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