Arena Update: Katz Group Wants More Public Money

Yesterday Council received an in-private update on the Katz Group’s changing position. The flavor of their concerns is reflected in John Karvellas’ letter that was released publicly yesterday.

The letter focuses on coming to terms on cost overruns but as I said to the media yesterday (link updated) the disconnect with Council is over several vague references in the letter to needing additional support to make the team sustainable. We discussed the specific dollar figures of their new requests in the in-private session and without being specific I can say they would amount to substantial, new, ongoing taxpayer-derived subsidies for the team. This new request is what prompted council’s motion yesterday, which I tweeted out via the above pic just after the vote.

Regardless of my well-documented reservations about the original funding model, that funding model from the October 26, 2011 is Council’s position. I had understood it to be the Katz Group’s position as well.

It was my impression that we had a deal.

So I voted for yesterday’s motion because I felt that Council needed to strongly reject these new requests for significant additional public subsidy of the Oilers.

On the matter of the arena price tag, Council has been clear that we think a great building can still fit into the $450 million dollar budget. And that’s why I voted to support the last motion on this matter in July, which did authorize continued design work, but reaffirmed the $450 million budget for the building proper.

The part of the project that is out of control is the Winter Garden overpass, which has always been a Katz Group priority, not a City Priority. But its grandeur does impact the viability of the arena itself for NHL hockey.

So stay tuned – the puck is in their possession.

13 thoughts on “Arena Update: Katz Group Wants More Public Money

  1. Bingo, kill the Winter Garden. It was a horrible idea from the get-go. I thought we had all learned by now that a) taking people off the street = perception of dead downtown, and that b) designing for cars and traffic means you just get more cars and traffic.

  2. The Winter Garden was always extolled as the arena’s shinning jewel. It was among the first of Katz’s drawings to be released and, despite having nothing to do with the Arena or his $100M funding commitment, was the centerpiece of his sales job to Edmontonians. It was this wondrous piece of architecture that would spur development in the lands south of 104 Ave and would create the kind of social hub the downtown was severely lacking.

    Now, unsurprisingly, the Katz group is scaling back their offer to the 104 Ave overpass because their initial contribution was always known to be insignificant in light of their grand designs.

    Kudos to Council for holding fast on the price tag and putting the puck back in Mr. Katz’s zone. Let him explain to the citizens of Edmonton how the very basis upon which he sold the arena to Edmontonians was fraudulent.

  3. I am terribly disappointed to hear that council put in another $10 million today. This isn’t even in the city’s mandate -building a building for a pro sports team when one already exists. I say scrap it and build a multi use facility that all Edmontonians can use and actively participate in. Rich people guzzling beer while watching someone paid to play isn’t the “recreation” referred to in the city’s mandate.How very sad for our children who have to play in underfunded community league rinks.

  4. I tend to agree with Sharon. One thing Edmonton is sorely lacking is a rec centre in, well, the centre. We build these huge things in the suburbs, but something convenient to core-residents and non-drivers? Bah, this is Edmonton: get in your car.

    A private arena (despite the paper ownership, this is definitely a private facility that we’re talking about here) will do far less for the city than an actual public facility, yet cost the same or more.

  5. The taxpayers of the City of Edmonton should not be financing a billionaires huge profits. His is private enterprise and as such no different to a Walmart or London Drugs and this city does not guarantee those businesses somewhere to trade their wares or guarantee them profits. Send Mr Katz a road map of the US maybe he’d like to settle his team in Atlanta, I hear they have a wonderful empty arena and a huge population base to draw from.

  6. It is time to pull the plug on Katz and his gang.

    If he wants an arena and all the control and take of income he is free in this country to build his own KATZ KASTLE.

  7. I agree why should we pay more taxes for Katz to get the proffits from and we cannot afford to anything there. I am a pensioner and cannot afford even now to go to a hockey game.

  8. Like you, I still think the original funding model was too favourable to the Katz Group. Surely, this latest set of demands has got to be the last straw. The City needs to start setting the terms under which we will allow the Oilers to play in our arena, not the other way around.

    The Katz Group is superfluous and brings no expertise to the design and construction of a new arena. They bring no dollars to the table as the City is fronting 100% of the arena costs. The City owns the arena land and is funding 100% of the $30 million design budget. The City should deal directly with PCL and 360 Architecture from now on.

    The city then needs to get down to business. Cut all the frills and extras out of the design. Build the community rink. Delete the useless and unnecessary winter garden.

    Northlands needs to be brought back into the process to see what they would be willing to pay for the opportunity to run the new arena so that the two arenas complement rather than compete with each other.

  9. Daryl Katz? are you sure it isn’t Daryl Pocklingkatz? This smacks of the former. Do you think all developers are like this?
    Sic’ in the gut!
    mary

  10. I feel that Daryl Katz is just another Peter Puck and if he wants an area he should build it or take his team and go. No one paid me to live here and you want my tax dollars to support private enterpize when most people can not afford to buy a game ticket

  11. Several of the members of Speak Up Edmonton live in your Ward Don. We sincerely think that it is time to stop negotiations with an individual that has insatiable demands.
    We just created a petition: Edmonton City Council: Stop the negotiations with the Katz Group!, because we care deeply about this very important issue.
    We are trying to collect 1000 signatures, and we could really use your help. Please email us at speakupedmonton@gmail.com and vote on this issue.

    It’ll just take a minute!

    Once you’re done, please ask your friends to sign the petition as well. Grassroots movements succeed because people like you are willing to spread the word!

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