Edmonton rejects Oiler [Arena] bid for more taxpayer dollars
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09-19-2012, 05:38 PM
Join Date: Nov 2006
Originally Posted by
That's totally incorrect. The $450 million is just for the rink not the arena district. The City has already bought the land back from Katz, that cost is on top of the $450 million. The $100 million Katz has committed will be paid over 30 years. He's putting nothing into the arena up front.
Nope. The proposed $450M includes the arena district, as the $100M from Katz is earmarked in both the building itself and the arena district.
"The Arena Building
The maximum cost of new arena is $450 million and the building will be owned by the City of Edmonton.
The $450 million includes:
Design, construction, soft costs, eligible pre-development expenses
Any oversight expenses
Associated development costs.
350 parking stalls
Site servicing costs
"Arena Entertainment District
The Katz Group will commit $100 million to development in the arena district, subject to commercial viability. In the Council-approved framework,
$30 million of the $100 million must be invested prior to the start of construction of the arena
As you can see, he has to invest $30M up front. There goes that accusation of him not paying anything up front! The arena and district should be seen as a whole.
I do not believe that Katz has committed $200M for the arena and the arena district, (Or the "greater arena") considering the district is comprised of mainly land development and real estate (Restaurants, bars, stores opening, etc).
And the arena building itself is comprised of many different aspects and is not "just" an arena. It also includes the winter garden and community rink.
Originally Posted by
It sounds like Katz wants to build something similar to the LA Live complex down here. You've got Staples Center, two hotels, condos, the Nokia Theater, a bunch of restaurants.
Anschutz bought the Kings in October of 1995 with the goal of building a brand new arena and this big entertainment district. That was his plan from the beginning. Staples Center was finished in 1999. Construction on LA Live didn't begin until 2005.
So my question is, why does Katz have to get everything he want built right away? Why can't it be done in phases? Get the arena done first, start making increased profits for the Oilers due to more luxury boxes and better club/premiere seating options. If people see you can get that done, I'd imagine that would increase the odds of finding investors for the entertainment/residential complex that he wants built around the arena.
The Oilers have until 2014 when the lease on Rexall expires. At that point, they will likely enter a year-by-year lease with Northlands. If significant progress (As in, breaking ground) hasn't occurred by then the Oilers will be faced with the reality that they are just not sustainable in the current NHL market at Rexall. If the deal falls through, Katz cannot guarantee the Oilers in Edmonton long term.
The proposed idea needs to be approved before staged construction can begin. Once the financials are in order, then the arena can be built. The surrounding district will be built as it is developed from private investments.
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