Downtown arena or no Oilers: mayor

Mayor Stephen Mandel outlined a new arena funding plan Tuesday that would allow the project to proceed and see upgrades to other parts of downtown.

Property taxes from arena businesses and parking, subsidies and maintenance costs at Rexall Place, and other funds could be used to borrow about $95 million, Mandel told The Journal’s editorial board.

This would free up taxes earmarked in the current proposal for arena construction to revitalize other downtown areas, such as Jasper Avenue and the warehouse district, he said.

“For us to think we’re going to get 15 highrise buildings downtown, you’re smoking dope. We have to develop our downtown differently,” he said.

“I think it’s about how we build our city. Do we not have enough pride and care about our city to build this?”

Mandel, who plans to present his idea to councillors Wednesday during an arena update, gave his clearest warning to date that failing to replace aging Rexall Place could mean the Oilers will leave Edmonton.

“I think if we don’t go ahead, we won’t have a hockey team. That’s not me saying it, that’s what people have said.”

While executives with the Katz Group have indicated they want a new building by the time their lease at Rexall Place expires in 2014, they won’t reveal what they’ll do if that doesn’t happen.

NHL commissioner Gary Bettman has repeatedly said that Rexall isn’t up to league calibre, Mandel said.

“If we don’t build the arena, where’s the reason to stay here?”

Mandel wants council to direct the city administration to negotiate an agreement with the Katz Group on the $450-million project, taking into account cost, financing and other factors.

He made his comments following his annual state-of-the-city speech to the Edmonton Chamber of Commerce, in which he argued an arena and entertainment district would help create a strong, vital downtown.

“This is a project that has the potential to accelerate our efforts to bring more people, more energy and more activity to our core. In this sense, the impacts of this project will be absolutely transformational for our downtown.”

He said the province has approved up to $492 million so the city can complete the NAIT LRT line, which passes the arena site on 104th Avenue.

The money, requested last fall, is the first major payout under Alberta’s GreenTRIP transit program, and comes as city officials were becoming worried funds wouldn’t arrive in time to meet the scheduled 2014 opening.

“LRT became very, very important. There was buy-in from the whole regional area on that,” said Transportation Minister Luke Ouellette, who listened to Mandel’s speech, along with Premier Ed Stelmach.

“Now was just the time that we could put it together … Edmonton had its application in, and it was OK’d.”

Mandel said he’ll also ask the province to provide money for the arena if council gives its support, insisting more than the city will benefit.

“Edmonton should not have to bear the burden of all of this project, for all northern Alberta will enjoy this.”

Mandel said the city also needs to focus on arts and culture, which he called “a fundamental driver of the economy.”

He had several ideas for assisting the local arts community, including:

w Looking at buying the west-end campus of Grant MacEwan University, which he said has given the city a price for the structure, and turning it into a performing arts centre with space for dancers, opera, theatre and other groups.

w Putting a theatre in the new Meadows southeast recreation centre, which would be available for multicultural and other organizations.

w Converting Chancery Hall on the east side of Churchill Square, now used for city offices, into condominiums to help bring people downtown.

“We need to have these things. It’s about making a city livable,” he said.

“Cities are measured not by how they place in hockey, although that’s important to many people, but about their arts and culture.”