EDMONTON - City council will be hard-pressed to finalize key details of an arena decision before a Halloween deadline, but might need to vote on it anyway, councillors were told Friday morning.
A $100 million contribution from the provincial government has still not been secured, nor has a non-compete clause between the Katz Group and Northlands, city manager Simon Farbrother told council in an arena update Friday morning.
But Edmonton Oilers owner Daryl Katz and the Katz Group have said they would like to finalize a deal by Oct. 31, in part because their options on land north of 104th Avenue are set to expire soon. That leaves city hall just five weeks to finalize details.
Council heard the update, then decided to postpone discussion and a possible vote until next week, after Coun. Ben Henderson returns from representing the city on a business forum in Harbin, China.
All councillors are expected to be present for the meeting at 9:30 a.m. Tuesday.
“We have to collectively make a decision. We’re slowly, arduously getting to that point,” said Mayor Stephen Mandel after the meeting.
Council has been discussing the potential arena for 2 1/2 years. “I don’t appreciate the deadline being placed upon us, but there’s frustration from all sides. We need to come to some conclusions, yea or nay.
“I think pressure needs to be put on the province, too,” Mandel added. “This is a very political issue, but it’s a very important issue to many citizens of Edmonton. We need to try to resolve it.”
The arena is expected to cost $450 million, with $125 million coming from the city through a community revitalization levy and other reassigned funds.
The Katz Group has also committed $100 million, and $125 million would come through a ticket tax.
If the arena deal goes ahead, the city would also need to budget between $57 million and $72 million to buy the land, build an LRT station and construct a pedestrian bridge across 104th Avenue, if the city decides to include that in the design.
Friday’s meeting was originally planned to be held in private, but several councillors pushed for at least part of the update to be public. They started at 9:30 a.m. in public, then voted to go private at 10:50 a.m. to hear financial details about the options on the arena lands.
Before the meeting went behind closed doors, Farbrother said the city has agreed to “pursue its best efforts” to secure a non-compete deal between Northlands and Katz. The city has been in regular talks with Northlands, but nothing has been agreed to yet. Both parties are still trying to determine what such an agreement would cost the non-profit organization.
As for the $100-million contribution required from another order of government, “no formal response has actually been received by the city,” said Farbrother. Premier Ed Stelmach has suggested money could come from an expanded Municipal Sustainability Initiative (MSI), but little progress has been made on that front during the Progressive Conservative leadership race.
“All this information is interesting and useful, but it’s nothing new,” said Coun. Karen Leibovici. “At the end of the day, are we interested in a downtown arena or not?”
The status quo is not an option, and councillors have to recognize they are picking between limited alternatives, she said.
“You need to decide if you get off the pot. Isn’t that what this is about?” Leibovici asked Farbrother.
“Yes, I think it’s fair to characterize it at a very high level as, does this work for you or not?” Farbrother replied.
Mandel asked if Katz would be satisfied if they ratified an agreement with all substantial details except the provincial contribution and non-compete clause by Oct. 31.
Farbrother said they had not discussed that option yet, but it could be a possibility.
Between the two key unresolved issues, the $100 million is the real challenge, Coun. Don Iveson said after the meeting.
For the non-compete clause, “I don’t think it’s going to make or break this deal,” Iveson said. “The city only ever agreed to look into it.
“My sense of what today was about was, as much as anything, sabre rattling to try to get the province to move quickly before administration changes over as the result of the leadership race becomes clear.”
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