Edmonton's K-Days will continue despite Northlands threat to pull out, says mayor
Laura Osman | CBC News | Posted: August 5, 2016 12:28 AM | Last Updated: August 5, 2016
‘Council never responds well to being put under that sort of pressure,’ says Mayor Don Iveson
Mayor Don Iveson says he's confident K-Days will continue next year, even if it doesn't happen at Northlands.
He made the comments in response to Northlands CEO Tim Reid, who said Tuesday that K-Days is in jeopardy next year unless council agrees to fund $165 million in renovations.
Northlands has also asked council to forgive a $47-million loan debt owed to the city for expanding the Expo Centre.
"Council never responds well to being put under that sort of pressure," Iveson said Thursday.
K-Days saw a 2.3-per-cent increase in attendance this year, and Iveson said he expects K-Days will only improve in the future, regardless of who runs it.
K-Days will continue 'one way or the other'
"I'm confident there will be a K-Days, or something like it, next year, operated by Northlands, or somebody like it … one way or the other," Iveson said.
Reid later clarified his remarks, saying that it is only Northlands' ability to host K-Days that is in jeopardy.
Northlands has proposed spending $85 million to re-purpose Rexall Place, $45 million to create an outdoor festival space, and $35 million to renovate Hall D in the Expo Centre.
Iveson said council will have to debate whether or not to forgive the Northlands loan before it begins to look at putting new money into the property, which is owned by the city.
He said council won't be rushed into a decision on the massive refurbishment to turn Rexall Place into a hockey multiplex, as well as other proposed improvements to the Northlands site.
He noted council's track record is not as good when it makes decisions too quickly.
Reid said Iveson is right to want to take the time needed to get the project right. But he said it's his job to be clear with council about the financial risk of waiting too long, in the wake of development of the new downtown arena.
"With the loss of business at Rexall Place, we end up with a cash-flow challenge, and that cash flow lands specifically on our ability to support debt payment on the Expo Centre," Reid said. "There is financial risk that we both share, because of our mutual investment in the Expo Centre. "
Reid said the new arena is cannibalizing Northland's business, and the not-for-profit organization has few options to find new sources of money without council's help.
City orders halt to Northlands development plan
Last month, Northlands put out a request for expressions of interest on a potential real estate redevelopment on the existing horse racing site.
Reid said he received 13 responses, and six developers are on a short list.
Iveson said the land is owned by the city, which has ordered Northlands to take no further action.
"Any and all decisions about real estate development on any part of the Northlands campus would be a city decision," Iveson said.
Reid said the organization simply wanted to demonstrate the level of interest in developing the land. No deals have been struck.
The decision about whether or not to add residential development to the Northlands site will be up to council.
Meanwhile, city staff are expected to present their findings on the viability of Northlands' proposed future plans at a public hearing Aug 31.