Tax from new development will help pay for Edmonton arena

Property taxes will be needed from development in about 30 blocks of downtown Edmonton to help pay for a new arena, a city report indicates.

A community revitalization levy (CRL), which would dedicate property taxes from new construction around the project to help fund it, is expected to provide $125 million of the $450 million price tag, says a report released Thursday.

It shows the proposed boundaries of the CRL zigzagging from 97th Street to 109th Street, roughly between 102nd Avenue and 106th Avenue.

The area includes the warehouse district. Officials say some of the money raised could be put to other projects inside the boundaries if city council agrees.

It expects the levy will raise $160 million over the 20 year life of the CRL, but for the first decade there won’t be enough development to produce the taxes needed to cover the arena mortgage.

One “interim financing source” would be an increased ticket tax, it says.

Extra money that comes in above the amount budgeted for the arena, potentially $35 million, would be put toward civic infrastructure needed for the project.

The report acknowledges concerns there won’t be enough downtown development to support an arena and the Quarters revitalization of the east side, which is also expected to be funded with a CRL.

However, it says “each area has distinct and unique aspects which focus on different markets.”

The report, along with updates on the community benefits of the project, how it would be governed and other details, will be discussed by city council next Wednesday.

More to come...