The Katz Group won’t build an Edmonton arena outside of downtown

The Charrette has a good discussion of the recent arena news. You’ve probably heard by now that the Katz Group is now on record saying they would consider alternate locations if the downtown arena doesn’t move ahead:

“We continue to believe that the best solution for the city and the Oilers is a downtown development and we remain committed to those negotiations. However, to the extent that we cannot be certain of the result of those negotiations, we are open to alternatives to find another long-term home for the Oilers in the Edmonton region.”

At this point a statement like that is nothing but political maneuvering. The Katz Group has never indicated they would look to build elsewhere prior to that statement, so I find it hard to believe it’s true. Here’s a look back at what I mean.

The Katz Group issued a press release on March 25, 2008 voicing its support for a new downtown arena complex. John Karvellas, Rexall Sports President, said:

“Rexall Sports shares the Committee’s view that a downtown arena complex can help revitalize Edmonton’s core and become the centrepiece for a number of major developments in the adjoining area, as similar projects have done for other cities.”

On August 31, 2009 the Katz Group appointed Patrick LaForge as its principal point of contact. He said:

“At the end of the day, we envision a vibrant downtown with new housing, retail, office and public space, hotels, residential housing and other amenities, all anchored by a world-class entertainment and sports venue. We envision a neighbourhood that is well-integrated with public transit, livable, walkable, environmentally responsible and a benefit to downtown, surrounding communities and all of Northern Alberta.”

On September 29, 2009 the revitalizedowntown.ca domain name was registered. The website didn’t launch until February 24, 2010. Here’s what I said at the time:

Annoyed with the domain http://www.revitalizedowntown.ca. Katz is certainly not the only person working to revitalize downtown #yeg.

Here’s what Bob Black said in a speech on February 9, 2010:

“In all of the public opinion research we have done, the opportunity to revitalize downtown is what has people most excited about this project. It is also the reason why the mayor and the city have made revitalizing downtown one of their top priorities.”

In a speech to City Council on July 21, 2010, here’s what Daryl Katz had to say:

“I believe we have a once in a generation opportunity — through the Oilers, and through the need for a new arena — to do something transformative for downtown and for our city.”

In December 2010, the answers to questions from Council were released. Councillor Thiele asked the Katz Group: If no new downtown arena district is built in Edmonton and the Oilers will not play in a renovated Rexall Place, where will they play? The response:

“Our singular focus is upon negotiating a mutually satisfactory agreement with the City of Edmonton that will facilitate the construction of a new downtown arena.  We are confident that this can be achieved.”

And here’s what Bob Black said on May 18, 2011 when the Katz Group and the City agreed on an agreement framework:

“From the beginning we have approached this project with the twin objectives of creating a major engine to drive the revitalization of downtown and of creating a model for the long term sustainability of the Oilers in Edmonton.”

So, after all that, they release a simple statement saying they’re exploring alternatives? I call bullshit.

But perhaps, as The Charrette pointed out, the damage is done. Either they’re lying about looking elsewhere, or they’ve been lying to us for three years about how important downtown is.

Megaprojects aren’t enough to revitalize Edmonton’s downtown

Edmonton’s downtown has been the centre of attention lately, with a number of exciting megaprojects making headlines in recent weeks. As someone who has bought into the “as goes your downtown, so goes your city” mantra, I think the progress is good. But I firmly believe we need more than megaprojects to turn downtown around, and I’m not sure the little things that will positively impact downtown get the attention they deserve and require.

Downtown Panoramic

The most talked about megaproject is of course the $450 million arena:

“I’m elated. This is, to my mind, the start of a dream come true to rebuild our downtown.”
– Mayor Mandel, City of Edmonton and Katz Group reach arena deal (Archive)

Another megaproject is the $340 million Royal Alberta Museum:

“The aspirations of the city to revitalize its downtown, complete (with its) arts district, meshed with the province’s need for a new home for the Royal Alberta Museum.”
– Premier Stelmach, Royal addition to downtown (Archive)

Yet another megaproject is the $275 million redevelopment of the Federal Building:

“A different type of downtown? Step by step, piece by piece, we’re putting the puzzle together.”
– Paula Simons, Federal Building quietly takes shape (Archive)

Another one is the City Centre Airport, which Jim Taylor talked a lot about at the DBA luncheon yesterday. There are lots of other headlines and articles related to these megaprojects, and all seem to convey the message that collectively the megaprojects will revitalize downtown. Or that interest in downtown as a result of these projects is enough. But for these megaprojects to return the fullest return on investment possible, we need to do more. We need to make many, many smaller improvements in conjunction with the big ones. We can’t forget the little things!

To me, increasing the number of downtown residents is the key to downtown revitalization. We need a good mix of residential densities, types, and uses in the core. And we need more of the people who work downtown to choose to live there as well. Just having a new arena or museum isn’t going to be enough to get people to make that choice.

Mini-Edmonton
Photo by Jason Bouwmeester

The good news is that there are lots of small things we can do to make downtown a more attractive place to live, work, and play. Here are ten ideas that I have been thinking about, in no particular order:

  • Relax jaywalking laws downtown. I’ve had colleagues from London visit and they’re shocked that people wait at red lights! There and in many other cities, pedestrians are free to cross whenever the street is clear. I will readily admit that I cross the street on red lights all the time when the coast is clear. I think we need to make downtown a better place for pedestrians. It might seem like that’s what jaywalking laws are meant to do, but I think they actually reinforce the idea that vehicles have the priority instead. We need vehicles to slow down, and to come second to pedestrians.
  • Add scramble intersections. These are the intersections where traffic stops in all four directions, allowing pedestrians to cross the street in any direction, including diagonally. Again this helps to make downtown a more walkable, friendly place for pedestrians. This has been suggested for inclusion in the Jasper Avenue New Vision revitalization project, but we need to ensure it happens.
  • Prioritize downtown street cleaning. As soon as the snow is gone, the streets downtown should be cleaned. First impressions make a difference, and visitors are not impressed when they step outside and find themselves in a huge cloud of dust and gravel.
  • More projects like Todd Babiak’s Interventions and the Alley of Light. We need to make better use of underutilized spaces, and we could definitely do with some additional color and flair downtown. Let’s treat more of our blank walls and empty parking lots as canvases ready to be put to use. Maybe we need a community-edited database of available spaces?
  • Make public art a priority. Related to the previous point, development projects are supposed to include funding for public art, but the rules are not enforced. Capital Boulevard is moving ahead without funding for public art, for example.
  • Improve transit information displays. Downtown is already our primary hub for transit, and that role is going to be reinforced by the LRT expansion, particularly with the Downtown LRT Connector. Let’s add digital display boards to the big bus stops. They could use scheduled information for now, and be switched over to live GPS data when that system goes live across ETS. Let’s make the experience of using transit downtown even better than it already is.
  • Get rid of the portable toilets and add permanent ones. Having a place for people to go is better than having no place at all, without question. But why half-ass it? Let’s spend the (relatively small amount of) money to add permanent toilets downtown. There are lots of examples to draw upon, such as the beautiful and highly-effective public urinals that Matthew Soules Architecture designed for Victoria.
  • Add recycle bins alongside garbage cans. You may have seen the nice, silver receptacles that combine garbage, paper, and bottle recycling around the city, but there aren’t many downtown (aside from Churchill Square). We’re already a pretty green city, and this would help drive that message home downtown.
  • Require green roofs on new developments. They’ve done it in Toronto, why not here? There are many, many benefits that come from green roofs. And hey, we’ve already got one thanks to Williams Engineering.
  • Get rid of parking minimums throughout downtown. There’s a five-year pilot project in place for the warehouse district, but I think it’s a no-brainer. If you can sell a condo or rent a space without parking, then why not do it? Otherwise we’re effectively just subsidizing vehicles. This is a good way to spur development and hopefully infill, considering that it can cost developers between $30,000 and $70,000 per stall to create.

I’ve got my share of “bigger” ideas as well, such as doing whatever it takes to make the space behind the Stanley Milner library a proper usable square, perhaps alongside a larger revitalization of the building. Another one would be closing Rice Howard Way to vehicles and extending it to the top of the river valley.

I’m sure I’m just scratching the surface with this list, but the point is that there’s a lot more that goes into downtown revitalization than megaprojects. What are your ideas?

Edmonton’s Downtown Arena moves ahead with agreement framework

The Katz Group scored a major victory tonight as City Council voted in private to approve an “agreement framework” for the proposed downtown arena. The framework is the basis for the two sides to negotiate a formal Master Agreement, which will require final approval by City Council. While not a final binding agreement, tonight’s deal nevertheless allows the project to move forward.

Here is the full motion and amendments as voted on back on April 6 (tonight’s was largely the same – see here):

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The vote tonight succeeded 8-5. Who voted in favor of the framework? Who voted against?

For: Mandel, Krushell, Loken, Leibovici, Batty, Henderson, Anderson, Sohi
Against: Sloan, Gibbons, Caterina, Iveson, Diotte

The document outlines $350 million in funding for a $450 million arena. Where does the other $100 million come from?

Answering questions from the media tonight, Mayor Mandel would only say “other orders of government.” There is no confirmation on where the remaining amount will come from, but it is hoped that the Province will support the project.

How much of the total cost will be funded by a CRL?

The motion only states that $20 million be directed at the arena from a CRL. The remaining $105 million (the City’s maximum contribution will be $125 million) could come from direct tax revenues. However, the agreement framework page states that $45 million would come from a CRL. The final mix is likely to change.

What happens to Rexall Place and Northlands?

The motion specifies that City administration will continue “to work with Northlands to ensure the City understands their financial challenges and how these can be addressed.” Answering questions this evening, City Manager Simon Farbrother said that Edmonton cannot sustain two arenas. It would appear that Northlands has lost its seat at the table.

Will the City own the arena? Will it receive the revenue?

Under the agreement, the City would own the building and land. The Katz Group would be responsible for all maintenance, upgrades, operating and capital expense costs. The City also retains the right to access the facility four weeks a year. As for revenue, the motion only states that the City “negotiate options for potential revenue sharing.”

What will the arena look like?

The City stated tonight that the arena will contain 18,500 seats and 350 parking stalls. The design process will still need to happen once the project moves ahead.

What are the next steps?

The City and the Katz Group will now work to complete the Master Agreement. They’ll also be working to secure the remaining $100 million, likely from the Province.

Twitter was buzzing with the news tonight. Here are a few of the tweets that caught my eye:

#yegcc just came back in public – voted on a motion to approve a framework for #yegarena deal – details to be kept in private. Passes 8-5.

News conference upcoming at City Hall for major #yegarena announcement.

City announces framework to build arena!

City and Katz Group agree on agreement framework to build arena http://bit.ly/ipraRy #yegarena #yeg

The City of Edmonton and Katz Group agree to framework that “sustains NHL hockey in #yeg for 35 years.” #yegarena #Oilers

Mandel stresses optimism, forward momentum, believes holes in plan will come together now that framework of deal in place. #yegarena

This arena will built just when the construction labour and materials market explodes. I’m guessing it comes in at $700 million. #yegarena

This arena situation is just like the airport situation; everyone knew it was going to happen, it was just a matter of when. #yegarena #yeg

NOTE: #yegarena dissenters. A friendly reminder; you have until JULY 17th to file your plebiscite application. Just saying.

It’ll be interesting to see what happens next! Much more to come, stay tuned.

Will Edmonton be a second-class city without the new arena?

Last week City Council was again discussing the proposed downtown arena. Though Administration provided an update at the Wednesday meeting, it certainly didn’t feel like much new information was brought forward. Details on the proposed Community Revitalization Levy (CRL) were delayed yet again, this time until the first week of April. The meeting did not go well.

Mayor Mandel seemed to be upset that progress had stalled. He wants Council to make a decision in the next month or so:

“It’s enough already. I think we’re going around too many circles and let’s make a decision.”

But there was another comment he made that stood out:

“Either we build a new arena or we become a second-class city, which in my mind we don’t want to be.”

I’ll admit that comment even surprised me. Does Mandel really think we can’t be a first-class city without building the new arena? Is the project really a make-or-break one for Edmonton? Boosterism has long been a part of this debate, something Dave covered back in January. And as our Mayor I think Mandel needs to be Edmonton’s greatest champion, a role he has definitely not shied away from while in office. But is there no hope for Edmonton if the arena project doesn’t go ahead?

“My choice of words probably wasn’t right,” Mandel admitted when I asked him about it. “It’s just that when opportunities come up, you have to make a decision. Edmonton in the past hasn’t made an effort to seize opportunities that have come up.” It’s a good point, I think. You can’t simply wait for things to come along, you have to go out and get them. If we want to take Edmonton forward, we need to make a concerted effort to do so. “You’ve got to fight for things,” Mandel said.

Mandel stressed the need to improve our downtown. “Cities are evaluated by their downtowns, not their suburbs. Edmonton’s downtown has a long way to go.” I asked if that meant we had to have the arena. “There’s millions of ingredients that go into it,” he said. The arts community and our IT sector were just a few of the examples he cited. He of course thinks the arena is one of those ingredients, however. “The arena with a good financial deal will make Edmonton better.”

Stephen Mandel at Candi{date} Sept 29, 2010

When discussions get intense, people say things without fully thinking them through. I think that’s what happened to Mandel last week with the second-class comment, but he’s certainly not the only one who has made regrettable comments. Is it true that “the anti-arena faction is out in full force” as David Staples suggested (archive) a couple of weeks ago? I think it is, and there have certainly been some puzzling comments from them as well. The debate needs people on both sides, to help us tease out the details and ultimately arrive at the best decision for Edmonton. Mandel has decided to support the arena. Others have decided to fight it. A good debate is healthy for Edmonton.

On Saturday, Gary Lamphier writing in the Edmonton Journal reminded us that there are many key questions about the project that have yet to be answered (archive):

Although Mayor Stephen Mandel seems determined to wrap up the Seinfeldian arena "debate" — such as it is — in early April and push the project ahead at Mach speed, it’s hard to see why with so many key questions unresolved.

With weeks to go before a pivotal report on the project is presented to city council — following which councillors may have little time to reflect on it before they vote — it’s puzzling that so many key questions remain unanswered.

Today, Danny Hooper writing in the Edmonton Sun offered some compelling reasons to move ahead with the project (archive):

We are not the arctic outpost some think of us. This is a vibrant, energetic, resourceful, caring, and fun community, yet I don’t think our downtown best makes that statement. And I think it should.

Where some see a downtown that feels dull, disjointed, and at times lifeless, I see a blank canvas. The Katz group have at least brought out the paint and offered their vision of what our city centre could be. Of what it should be. And we’re all welcome to pick up a brush.

Maybe it comes down to perspective, as is so often the case with difficult questions such as this one. Do you choose to see the arena as Mayor Mandel does, as an opportunity to enhance our downtown that we should at least make an effort to capitalize on? Or do you choose to see the arena as those against the project do, as an expensive pet project that will do little to help Edmonton’s core?

There are no guarantees in this debate. Edmonton will not be relegated to “second-class” status if the project dies, nor will Edmonton automatically be world-renowned if it goes ahead. There’s obviously no secret recipe either, or we’d have already turned downtown around. Whether you support the arena or not, it’s important to recognize that revitalizing our downtown and becoming the city we want to be will take much more than any single project.

City’s Standing As Metropolis Declared To Hinge On Coliseum

Recently I have been doing some research on the history of Rexall Place. I thought it would be useful to understand what happened in the past when trying to make sense of our current downtown arena debate. As part of that research, I spent some time at the City of Edmonton archives. I wasn’t sure what to expect or how to approach my research, so I simply asked for anything related to the construction of the Coliseum. Sherry Bell, Reference Archivist at the Archives, was incredibly helpful and came back with a thick file folder labeled “File 1, 1963-1974”. She told me it was the first of many, just the tip of the iceberg.

Coliseum History at the Archives

I read through the entire folder, taking notes as I went. The documents inside, mostly clipped Edmonton Journal articles, tell the story of how the Coliseum came to be, from the push for a downtown arena in the early 1960s through to the construction of what we now call Rexall Place in the early 1970s.

The title of this post comes from an article in the Edmonton Journal published on September 12, 1963. In it, Alderman Les Bodie made his case for the proposed downtown coliseum of the day, saying:

“I think the successful city will be the one with a stable economic base combined with a stimulating economic climate, and the coliseum will be a major factor in attracting interest in our city.”

It was one of many gems I found in the file, some of which I have shared below, and some of which I’ll share in future posts.

In total, I recorded 93 headlines (I skipped some). Here’s the breakdown of the articles I looked at by year:

Lots was written early on in the debate, and less was written as construction got underway and progressed. Here’s a sample of the headlines:

  • Coliseum Site Studied – May 11, 1963
  • City Approves $10 Million Coliseum Plan – June 25, 1963
  • City Has ‘Escape Hatch’ If Coliseum Voted Down – August 29, 1963
  • City’s Standing As Metropolis Declared To Hinge On Coliseum – September 12, 1963
  • Mayor Hits Coliseum Critics – September 24, 1963
  • Coliseums Seem To Spark Growth – September 28, 1963
  • Coliseum Complex Rejected By Almost Half Ratepayers – October 17, 1963
  • Mayor Anticipates Verdict On New Coliseum Proposal – March 1, 1965
  • A Coliseum Or A New Arena? – March 25, 1965
  • Alderman Warns City Taxpayers Will Have To Subsidize Coliseum – July 20, 1966
  • Ex arena to be constructed just north of Gardens – April 22, 1972
  • Oilers won game but public the real winner – November 11, 1974

I was immediately struck by how similar today’s debate is to the debate in the 1960s. In short: a downtown arena is proposed and tied to the future of the city, people argue over the location and other details, but the process really gets stuck on the money.

One of the first documents I found in the file was a pamphlet published by The Hamly Press (which as far as I can tell no longer exists) entitled, “the Coliseum Plebiscite: a test of our Faith in Edmonton as a Great Metropolis of the North West”. Here are some of the statements found inside:

  • “A downtown showplace that will publicize Edmonton as a progressive, positive-thinking city, developing rapidly in all phases of modern city live and endeavor.”
  • “The Coliseum Complex will lead the way in revitalizing downtown activity.”
  • “A Vital Necessity for Downtown Development!”
  • “Construction of the Coliseum Complex will be the city’s first step in the fulfilment of Edmonton’s remarkable plan for the renewal of the downtown city centre. There is little doubt that perseverance with this project now will be a decisive factor in the eventual completion of the entire Civic Centre plan.”
  • And a quote from Mayor Roper: “This plebiscite will be a test of the vision of the ratepayers of our city. How much do we want Edmonton to lead all Canada in bold, imaginative downtown development?”

Edmonton Journal writer Ben Tierney, working in the City Hall Bureau, wrote a lot about the proposed project. In a September 24, 1963 article entitled “Other Cities Find Value in Coliseums” he highlighted what he saw as “three basic benefits”:

  1. Attraction of major sports, entertainment and cultural events that the city could not otherwise hope to obtain.
  2. Attraction of outside dollars to the city through increased convention activity as well as non-local attendance at coliseum events.
  3. Increased tax revenue for the city through construction of new downtown building encouraged by the coliseum’s construction, and a revitalized city centre.

Sounds familiar, doesn’t it?

Of course, the initial plan never came to fruition, and subsequent attempts to rescue it failed also. On October 17, 1963 the Edmonton Journal reported the results of the plebiscite that would have authorized the City to borrow $14,250,000 to finance the coliseum:

“The coliseum complex was strongly backed by the former city council, the Edmonton and District Labor Council, the Edmonton Chamber of Commerce and Jaycees, the Edmonton Exhibition Association, the Edmonton Area Civic Centennial Committee, and the Edmonton Building and Construction Trades Council.”

“55% of voters favored the two money bylaws…but a 2/3 majority was required. Opposition to the project centered on the costs involved.”

Over the next ten years, various attempts to salvage the idea were made, but ultimately the cheaper Edmonton Coliseum was built instead. I wonder how different things might have been had the downtown complex gone ahead?

Yes! For Edmonton Position Statement on the Proposed Downtown Edmonton Arena

Yes! For Edmonton sent the following position statement on the proposed arena to the media this afternoon:

I have been privy to some of the discussions about this, and was opposed to the statement being released because it kind of suggests that everyone who signed up to support the group on the airport issue automatically supports this one too. I don’t believe that is the case.

There are people in the organization who wanted to make a statement on the arena, and that’s fine. The more people who share their thoughts and opinions, the better. But I don’t think it is clear who Yes! For Edmonton speaks for, and that causes me some concern as the group approaches future issues.

It’s not clear whether this position statement will be posted on the Yes! For Edmonton website or what other updates will be made.

ONEdmonton Downtown Vibrancy Task Force letter to City Council regarding the Proposed Downtown Edmonton Arena and Entertainment District

ONEdmonton is a group of local leaders that have come together a few times over the last year to discuss how we can make Edmonton one of the world’s top 5 mid-size cities. The first subcommittee, called the Downtown Vibrancy Task Force, was launched in November after the larger group identified that our urban core is the top priority. I have been fortunate enough to be part of both groups.

Today, our task force sent a letter to City Council regarding the proposed Downtown Arena and Entertainment District:

The task force is a group of majority, not consensus. At the last meeting, the majority of the task force members voted the arena project as the top near-term priority in Edmonton’s downtown.

The task force members include: Chairperson Randy Ferguson (Procura), Bob Black (Katz Group), Dr. Paul Byrne (MacEwan), Carolyn Campbell (University of Alberta), Michael Janz (Public School Trustee, EFCL), Terry Kilburn (Avison Young), Bernie Kollman (IBM Canada), David Majeski (RBC), Mack Male, Doug McConnell (Dialog), Scott McKeen, Honourable Anne McLellan (Bennett Jones), Carol Neuman (Edmonton Next Gen), Simon O’Byrne (Stantec), Ian O’Donnell (Downtown Edmonton Community League) Keith Shillington (Stantec), Paul Verhesen (Clark Builders), Sheila Weatherill (EPCOR), Richard Wong (Sutton Place Hotel), and Ralph Young (Melcor). Representatives from EEDC facilitate the task force.

I don’t think anyone on the task force considers the arena project a done deal, nor do they think the issue is a simple one, and this is reflected in the letter. My read of what the task force is saying here is this: there’s potential with the arena project to positively impact our urban core, so let’s keep things moving and figure out how to make that happen.

UPDATE: I originally left out Ian O’Donnell and Sheila Weatherill, because they joined us after the first meeting. My mistake. EEDC has posted the list here.

Northlands by the numbers

Today Northlands made a presentation to City Council. Chair Andrew Huntley and President Richard Andersen talked about the impact that the organization has in Edmonton, and answered questions related to the proposed downtown arena. Here’s an at-a-glance look at Northlands:

Most of those numbers come from the 2009 Northlands Annual Report (PDF). Northlands breaks its business into four areas: Northlands Major Events, Agriculture, Racing and Gaming, and Sales, Hospitality and Client Services. Racing and Gaming accounts for both the most revenue and the most expense – that area of the business lost over $7 million in 2009.

As David Staples noted, I don’t know how they get to 2500+ events.

Some other numbers, from the presentation this morning:

  • $5.8 million is the base cost of operating Rexall Place each year
  • $10.9 million is the cost of operating Rexall Place if you include hockey
  • $17.1 million is the cost of operating Rexall Place after including all other events
  • $1.1 million is the amount the Oilers contribute towards those operating costs
  • $2.2 million is the amount the City of Edmonton contributes toward those operating costs each year (adjusted for inflation)

The Oilers pay Northlands $1 to rent Rexall Place – that agreement is set to expire on June 30, 2014. Northlands pays the City of Edmonton $1 to rent the land its facilities are located on – that agreement is set to expire in 2034.

You can learn more about Northlands here, and you can see their answers to City Council’s questions here (PDF).

Proposed Downtown Arena: Response to Council’s Questions

Back in July, City Council asked questions of Administration, the Katz Group, and Northlands regarding the proposed downtown arena district. A lot of questions. Today, the responses to those questions are being made available in preparation for the December 10 meeting (read them here). Here are a few questions and answers that I have extracted.

Mayor Mandel asked Administration: How many parking stalls are in downtown Edmonton that are within 8-10 blocks of the new proposed arena site?

Data from a parking study prepared as a background report for the Capital City Downtown Plan (Capital City Downtown Plan) in 2008 and recent calculations indicate approximately 46,100 total parking stalls exist within a 10 block radius from the proposed arena site.  Of these, approximately 2,700 are on-street metered parking, 17,300 are off-street surface parking, and 26,100 are located within a parkade (i.e. structured parking).

Councillor Caterina asked Administration: Why was the 5th best location chosen rather than #1 – Jasper Avenue, #2 – Northlands, etc.?

The confidential HOK Study does not prioritize the proposed locations.  Rather, it identifies the essential components required to attract major sporting and entertainment events and identifies location issues and the criteria necessary for a successful facility development.  The proposed location for the district is a viable choice when factoring in the various criteria identified in the HOK Study, particularly related to the challenges/opportunities of land assembly.

Councillor Leibovici asked Administration: Can a condition of a CRL be a guaranteed revenue stream?  In other words if projected development does not occur as anticipated can the City require that the Katz Group provide a guarantee to cover debt servicing costs?

A risk assessment is part of the requirement for the CRL.  The CRL plan must identify expected and alternative funding sources in the event the development does not occur.  Alternative revenues to make up any shortfall in expected revenues from a CRL would be discussed as part of a negotiation with the Katz group.

Councillor Leibovici asked Administration: What are the projections for the Edmonton Convention Market? Part of the answer:

From Mike Fitzpatrick, VP & General Manager of the Shaw Convention Centre: The Shaw Conference Centre is routinely turning away convention business due to a lack of downtown convention space; when that happens these events are almost always forced to select another city.  In the nine months from January to September 2010 we have already turned away 13 future convention bookings.

Councillor Sohi asked Administration: Have discussions taken place with the Province regarding the CRL model?

Administration has had preliminary discussions with the province on the use of a CRL for arena development.

Councillor Anderson asked the Katz Group: Is the $100 m Katz dollars cash or land?

There are a number of ways to deliver $100m  in value, but we recognize that this will have to be done in a fashion that is acceptable to the City.

Councillor Iveson asked the Katz Group: Please explain exactly how a Location Agreement works from the Franchise perspective, including the contemplated duration of the agreement.

A location agreement would be a term of the lease pursuant to which the Oilers would play in the new building.  It would bind the Oilers to playing only in that building for the full term of the lease.  We are prepared to sign a long term lease in a new downtown arena that would bind the team to Edmonton for the  term of that lease.  We expect a term of 25 years or more.

Councillor Sloan asked the Katz Group: Forbes has shown consistently over the past 3 years that the Oiler net operating income is better than the Calgary Flames anywhere from $3 million to $10 million per year?

That is not accurate based on our information.

Councillor Sohi asked the Katz Group: Are two arenas viable in Edmonton?

No.

Councillor Thiele asked the Katz Group: If no new downtown arena district is built in Edmonton and the Oilers will not play in a renovated Rexall Place, where will they play?

Our singular focus is upon negotiating a mutually satisfactory agreement with the City of Edmonton that will facilitate the construction of a new downtown arena.  We are confident that this can be achieved.

The complete list of questions and answers is available here. At the December 10 meeting, Northlands will be giving a presentation, the questions and answers will be discussed, and Administration will be talking about the public consultation that took place.

The issue will come before Council again on January 17. You can see more information here.