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EDMONTON — A committee studying whether to build a new arena in downtown Edmonton has concluded that the project would be both feasible and desirable.
The committee said Tuesday a new sports and entertainment facility in the Alberta capital would help revitalize its downtown core.
As for who would pay for the $450-million, 18,000 seat arena, the committee suggests a "mix of public and private participation."
Spokeswoman Charlotte Robb says the committee is confident the arena could be financed without tax increases and without taking money away from other infrastructure projects.
Edmonton Mayor Stephen Mandel stressed again that property tax dollars won't go into the building.
"I've said it a hundred times and I'll say it another hundred times, we're not going to raise taxes to pay for this."
Darryl Katz, the new owner of the NHL's Edmonton Oilers, has pledged up to $100 million for a new ice rink, although the committee has not spoken to him directly.
The cost doesn't include the cost of the land.
"We wanted to find a made-in-Edmonton financial solution that will allow for us to have this facility without increasing the (property) tax or re-directing infrastructure dollars," said Lyle Best, chairman of the arena committee.
In its 38-page report, the committee suggests a minimum 30 per cent, about $135 million, could come from the private sector, including the $100 million promised by Katz.
The remaining $315 million would have to be borrowed.
A portion of the debt could be repaid through various taxes and levies, including a higher ticket surcharge, the committee suggested.
The committee also said the city could look at a community revitalization levy in the area surrounding the new building. That would see a portion of taxes paid by new neighbourhood developments set aside to pay for the arena.
If the arena complex included condos, a hotel or a casino, a rental fee could be charged to pay down the debt as well, the committee suggested.
The group's report notes the relatively small size of Edmonton's corporate community and the fact the building would have only one major tenant — the NHL Oilers — makes financing a bit more difficult.
"It is highly probable that an Edmonton project will require contributions from all orders of government in order for it to be economically viable," states the report.
