Councillors meet on arena land deal
Edmonton city councillors met privately Tuesday about issues around the new downtown arena but emerged from the meeting with little to say.
Mayor Stephen Mandel told reporters that the next steps are up to city staff.
"It's up to administration now to deliver by some date prior to October 31st ... a package that will come before council and people will say yes or no," he said.
As part of the deal with the Katz Group, the city would have to purchase the land for an estimated $20 to $25 million — which is in addition to the project's $450 million price tag.
The Katz Group, which owns the Edmonton Oilers, wants a deal completed by the end of October. But some councillors have expressed concerns with that deadline saying they don't have enough information to move ahead.
On Friday, Mandel conceded that two issues will not be settled by the end of October — negotiation of a non-compete clause with Rexall Place operator Northlands, and the source of the remaining $100 million in project funding. Nonetheless, he said an agreement is within reach.
But Coun. Linda Sloan disagrees. She believes councillors are being forced to make a decision without having answers to all their questions.
"We don't have the $100 million from the province. We don't have confirmation of the owner's $100 million and then we've got a gap, or whatever the land is going to be," she said.
City manager Simon Farbrother said the city could always sell the land if the deal doesn't go through.
"The city acquires land on a regular basis and it keeps it, disposes of it, uses it, depending on the circumstance," he said.
Any decision council makes on a land purchase will be made public. However, details about the transaction will not be released until the deal is finalized.
Under a framework deal reached between the city and the Katz Group in May, the arena price is set at $450 million.
The Katz Group pledges to contribute $100 million.
The city will contribute $125 million and another $125 million will come from a user-paid facility fee. The source of the outstanding $100 million still hasn't been determined.