All teams are like that to a very high extent and most cities with storied franchises have devout and extremely loyal fans, NOT PAWNS. This is negotiation and I am of the belief that we will see a positive outcome at the end of the day.
http://www.edmonton.ca/city_governme...own-arena.aspx
Agreement Framework
Edmonton City Council has approved a financial framework between the City of Edmonton and the Katz Group to design and build a new downtown arena.
The framework outlines the principles for the partners to proceed to negotiate the terms of a master agreement.
The framework achieves the following four objectives, which were identified during public consultation:
The City’s interests are protected
Does not increase current property taxes
Sustains the NHL in Edmonton
Provides public infrastructure as a catalyst for downtown revitalization
Summary of Financial Framework Terms
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
Levies
$450 million is comprised of:
Katz Group $100 million
Facility Improvement Fee $125 million
City of Edmonton
CRL $45 million
Other sources $80 million*
Other Orders of Gov’t $100 million
Maximum Price of Arena $450 million
*includes $25 million from new parking revenue, $35 million redirected from City support for Rexall Place and $20 million from other current arena area related expenditures that will be re-directed.
Financing
The City will borrow funds for the construction of the arena subject to securing the necessary funding from other orders of government and until revenue for covering the costs of construction is realized. The City’s budget calculations include the cost of borrowing.
The Katz Group's $100 million contribution would be paid over 35 years at an estimated $5.5 million/year. This total includes the cost of interest to borrow this money. The actual cost would depend on the actual interest rates.
The Community Revitalization Levy and the City sources will not result an increase in current property taxes.
Other Orders of Government
The Mayor, on behalf of Council and the Katz Group, has approached other orders of government to negotiate their involvement in the project.
Design
Council is committed to having public input into the design of the arena building.
The arena design must be acceptable to both the City and Katz Group.
The design of the arena building will be consistent with the Capital City Downtown Plan design requirements.
Design costs are included in the $450 million construction costs. City Council approved $30 million for design.
Land
Council has agreed to buy land for an arena. The cost of the land for the arena and a community rink, if one is built, is estimated at $24.6 million.
The costs of the land is not included in the building construction costs. The City will own the land.
The land is being acquired by the City to facilitate the time and type of development to be consistent with the City's goals.
Development of all parcels of land to be designed consistent with the Capital City Downtown Plan.
If you have questions on the land purchase, view the Frequently Asked Questions.
Public Infrastructure
The City will pay half the cost of a pedway bridge across 104 Avenue, up to a maximum of $25 million for the City's share. The pedway bridge will facilitate connection of the LRT stop on 105 Avenue northwest of the building with the downtown south of 104 Avenue.
As with many buildings next to LRT stops (e.g. the University of Alberta Hospital, NAIT, Southgate) the City will connect the LRT stop next to the arena to the arena. The City's contribution is capped at $17 million.
These costs are not included in the $450 million cost of construction for the building.
Arena Operations
Sustainability of the NHL in Edmonton is a primary objective.
The Katz Group will be responsible for all arena operating expenses and all capital upgrades, maintenance and improvements. The Katz Group will receive all operating revenues, including naming rights and parking revenue.
The City will have access to the arena for four weeks each year.
The City will maintain a ticket tax on events at Rexall Place equivalent to the ticket tax at the proposed downtown arena, ensuring a level playing field for both facilities. Council has agreed that the ticket surcharge on events at Rexall Place will not be used to fund the downtown arena.
Community Rink
Subject to funding contributions from both the federal and provincial governments, the City would contribute to a community rink on the arena lands. The City's contribution is estimated to be $7 million.
If a community rink is built, both the land and building would be owned by the City of Edmonton.
A community rink is not included in the $450 million arena building cost. The City commitment to funding a community arena is contingent on matching funding from both the provincial and federal governments.
Edmonton Oilers
The Katz Group will enter into a community benefits agreement with the City.
The Katz Group will enter into an agreement with the City to keep the Edmonton Oilers Hockey Club in Edmonton for the next 35 years.
The City will enter into a marketing/branding partnership with the Edmonton Oilers. The City will pay $2 million annually for 10 years. This agreement is similar in annual cost to the marketing deal the City entered into with the Indy race.
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.
http://www.edmonton.ca/city_governme...framework.aspx