Katz not yet committed to ticket tax

A letter from Edmonton Oilers’ owner Daryl Katz to Mayor Stephen Mandel has stressed there is no formal agreement for a ticket tax to help fund a proposed downtown arena, according to Edmonton’s city manager.

“There’s some resistance to using that,” said Simon Farbrother, referring to a seven-per cent ticket tax currently expected to cover $125-million of the $450-million project.

The city has proposed a number of funding scenarios for a new downtown arena, including a community revitalization levy (CRL), which would use property taxes from new construction around the arena to help fund the project. So far, the city faces a $100-million funding shortfall in a proposed funding plan that includes revenue from a ticket tax.

The letter written to Mandel also spoke of the importance of remaining competitive with the Calgary Flames and the possibility of approaching the provincial government for support. A copy of the letter was forwarded to Farbrother.

The mayor’s officer received the letter late last week.

Currently, a seven per-cent ticket tax is imposed at Rexall Place. That tax is up for renewal in 2014, Farbrother said. He said it would be “pretty easy” to continue this practice for the new project and noted he would be surprised if a ticket tax weren’t part of the final agreement with the Katz Group. “From the city’s point of view, the ticket tax is still on the table,” said Farbrother.

The mayor’s response to Katz’s letter stressed that he still strongly supports the ticket tax model for the proposed arena. “I must reiterate my position that a user-pay component is a vital part of the successful, fair, competitive financial model,” reads Mandel’s letter.

The Katz Group declined to comment on the particulars of the ongoing negotiations.