The Official Arena Thread Part 6
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11-03-2012, 07:55 AM
Join Date: Jul 2010
Originally Posted by
The city was the one getting a pretty sweet deal too. With Katz kicking in $100 mill + getting a ticket tax incurred on his ticket prices (basically money out of his pocket), the city was going to get a state of the art, landmark facility for their crap downtown.
So for $250 mill on their end, they were getting a brand new, world class arena complex that would no doubt be the crown jewel of their downtown.
That's the same price they'd have to spend to renovate the current Rexall in the middle of nowhere.
The city can't build a $400+ million arena on their own, certainly not without being able to slap a fat ticket tax on Oiler fans on top of it.
Ticket tax doesnt come out of his pocket, it's user pay unless you want to count the GST as coming out of his pocket as well. The people buying the tickets are charged extra, it's not unique to Edmonton other cities do it.
The thing is they were willing to do the deal, it's Katz who has pulled out. He doesnt want to actually pay anything on the deal. He's scared his office tower wont be full so he wants the City to subsidize that as well as the arena by becoming the anchor tenant.
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