A new report on the proposed downtown arena shows the cost of road upgrades and transit links were not included in the arena's $450 million pricetag. Now, the city councillor behind the report warns negotiations may soon get more emotional.
Coun. Ed Gibbons put forward a list of questions about the project after he felt council was rushed into a vote on the arena's financial framework last month.
Council took a big step forward in the process after passing a framework agreement back in May. But some believe that step happened too quickly.
"It was a quick vote," said Gibbons.
In the new report, Gibbons got several of his questions answered about the deal.
"This will clarify a few things. It might cause more ruffled feathers out there with a lot of people being upset, but that's what we should have happened."
Some areas of concern include the $32 million in costs required to make necessary LRT and road upgrades around the new facility.
"This gives clear answers to the public that $450 million isn't the bottom line, unless they can build an arena for a lot less than $450 million," said Gibbons.
The mayor says this is the cost of doing business.
"The links to the LRT are the same links we'd do at any place. We did it for every station in the city, so that's the cost of having light rail transit system," said Mayor Stephen Mandel.
The report also shows Northlands is not done with the arena business, even with a new facility coming into the picture, Northlands is prepared to compete.
City administration states in the report it is their understanding Northlands intends to continue to use Rexall Place as an entertainment venue.
"We assume Northlands is not supportive of any conditions that may restrict their activities," the report states.
Northlands is being asked to sign a non-competition clause to ensure the two venues aren't fighting to host the same events.
The clause was part of a motion passed back in May between the city and the Katz Group for a new arena.
The organization recently announced plans to replace old seats at Rexall Place to keep customers happy and business competitive.
Edmontonian Dave Cornish says he hopes the city does what is necessary to push the arena deal through.
"I think debate is good and I think it's necessary. But someone has to make a decision," he said.
This report is set to go before city council on Wednesday. Beyond this meeting, city administration is expected to come back with more information about cost estimates, timelines and funding models by the end of August.
With files from Jessica Earle
