Edmonton city council voted in favour of demolishing Northlands Coliseum at a cost of $35 million during budget deliberations on Monday evening.

The fate of the former home of the Edmonton Oilers has been in limbo since it was officially closed at the end of 2017, as city administration and elected officials looked for ways to sell or repurpose it.

City council decided on Monday night to bring the building down, with eight councillors in favour and five voting against.

"It's been put off for far too long and we need to take responsibility for this," Ward Métis Coun. Ashley Salvador told CBC's Edmonton AM on Tuesday.

"Ultimately, in order to achieve the vision for the overall site of the exhibition land, it does need to come down."

It costs up to $1.5 million a year to keep the empty building in its current form, according to information provided by the city.

Mayor Amarjeet Sohi, who voted against the motion, has concerns about how the city will pay for the demolition.

"We don't have that money," he said during the council meeting.

Amendments to the capital budget already approved by councillors could add about 1.03 per cent over four years to the tax increase proposed in the budget documents. Sohi added: "We haven't even gone through the operating budget yet."

The city has recommended annual property tax increases of 3.9 per cent in each of the next four years.

Along with the $35 million to demolish Northlands Coliseum, councillors have also agreed to spend $100 million to implement the city-wide bike lane network, $10 million on preserving natural areas, $6.6 million on revitalization efforts for the Balwin and Belvedere areas, and $4 million on nature-based climate solutions.

Salvador explained on Tuesday that the actual funding for the demolition would not kick in until 2025.

"There's some planning and design work that has to happen for the demolition itself because it's not a simple structure to take down," she said.

As well, she added, city administration will review other options in the next two years to see if any industry players can help with the demolition.

Even if the city can't currently afford to take on the demolition, Salvador said it was important to get the item passed during this budget cycle.

"I think this is a huge win for all Edmontonians," she said. "This has been costing us year over year."

The Coliseum opened in 1974. The final Oilers game in the building was played on April 16, 2016, and the doors were finally closed at the end of 2017.

Since then, city council considered several options to repurpose the building, including having private investors take it over.

Demolishing the building will make way for the Edmonton Exhibition Lands Redevelopment project, a walkable, transit-oriented redevelopment plan that includes mixed-use infill development in partnership with private investors.

Deliberations for the $7.75-billion capital budget for 2023-26 continue throughout the week.