City councillors suggest other options to get new arena built

With all the frustration surrounding the downtown arena deal, some city councillors have suggested the city build an arena on its own, without the Katz Group.

"I think that there's all kinds of potential for other ways to skin this cat that we haven't even looked at," said the Downtown Business Association's executive director, Jim Taylor.

Taylor says if Northlands becomes involved in the deal, the city could sell the land that Rexall Place currently takes up, and put that money towards the new arena. The city could also charge rent to the Oilers and sell naming rights. Taylor believes more money could also come from the Community Revitalization Levy.

"When you take that Northlands property into consideration, take the CRL into consideration, take it all and put it all together, I think that there is a possibility that the city could build their own arena."

Northlands has been out of the picture for a couple of years however, President and CEO Richard Andersen says if there is a way Northlands could be involved, it would.

"We've always wanted to be a part of the solution," said Andersen.

Others question the city's motives, saying this may just be another negotiating tactic.

"In game theories, that's called tit for tat strategies," said University of Alberta Sports Economist Brad Humphreys adding, "This could just still be one more step in the negotiation process, and it may be that the Katz Group will eventually have to capitulate to this deal."

Others say the city building the arena may not be the best way to spend public funds. Scott Hennig of the Canadian Taxpayers Federation thinks the city needs to hold tight and wait for Katz.

"It could work out to a better deal for Katz if the city does build the arena, insofar as that essentially, he wouldn't have to put any money into it and if they give him the same deal he's got at Northlands, of paying a dollar a year, then he could basically gets a free arena."

The city already owns the land on which the arena would be built. It has spent $25 million on it.

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With files from Fletcher Kent.