If Calgary gets arena cash, Edmonton wants some, too
While the CalgaryNEXT megaproject is still a phantom of the civic imagination, Edmonton is now demanding equal treatment for its arena, already under construction, just in case the province might chip in some cash.
So it begins. While the CalgaryNEXT megaproject is still a phantom of the civic imagination, Edmonton demands equal treatment, just in case the province might chip in some cash.
Edmonton already has a locked- down deal for its $ 604- million arena project, now being built.
It includes $ 32 million from two provincial programs. Apparently, $ 25 million of that still hasn’t been paid either by the old provincial government or the new one.
The view in Edmonton is that Premier Rachel Notley has now left the door open to serious provincial funding for CalgaryNEXT, based with some credibility on Notley’s comment to the Herald on Sunday.
“We need to see what they’re going to propose,” she said. “Our view certainly, when we were in opposition, around the Edmonton arena was that ‘ No, that’s not the first priority for government funds.’
“But you know what, I’m going to keep an open mind and look at what proposals come forward ( from Calgary) and go from there.”
That was a pure rookie premier moment for Notley. She suggested that Edmonton didn’t get much provincial aid and Calgary might get something serious. Wars have started over less.
Edmonton Mayor Don Iveson said today: “It’s a new day in Alberta, obviously. I’m very intrigued and a bit surprised that this government’s policy seems to be up for review.
“My expectation is that if we’re going to spend any new money on any aspect of revitalization of downtown Calgary, that we would be given the same opportunity.”
It’s a valid point. It would be unfair indeed if Calgary got arena money under some new twist, just as Edmonton’s project is going into the ground on agreed terms.
Bob Nicholson, boss of the Oilers Entertainment Group, said the Calgary project is “ambitious and I wish them well with that.”
He added: “I know that the City of Edmonton and the OEG will be treated fairly from the various government agencies.”
It sounds like a pitch for more public money into a project whose funding is already supposed to be settled. All because the Flames held a news conference.
Remember, these people got Connor McDavid. They’re not stupid.
The structure of the Edmonton deal is fascinating in the context of Calgary’s emerging debate. It shows that however much the politicians promise not to put in much or any public money, they always do.
After years of conflict between city council and Oilers’ owner Daryl Katz, the long overtime was broken by a shootout, roughly in Katz’s favour.
The city put $ 279 million into the deal. The province and Ottawa promised $ 39 million. Total government contribution: $ 318 million.
Katz’s company, OEG, contributes $ 286.5 million, much of it payable over time.
The city fronted much of the borrowing, including $ 120 million for a Community Revitalization Levy, a device that’s about to become very controversial in Calgary.
There is no chance — none at all — that the Calgary deal can be done without a similar level of public spending. Probably, it would take far more.
For one thing, the Calgary proposal is much bigger — $ 890 million for the entertainment and sports complex, as opposed to $ 480 million for the Edmonton rink alone.
Edmonton’s costs beyond the stadium are relatively minor — $ 79 million — largely because the central area has full city services already in place, and no damned creosote.
The Flames’ plan involves much more extra spending outside the sports and entertainment complex — perhaps well above $ 500 million — because of creosote cleanup and the need for full service buildout of the proposed West Village.
These two side projects, kickstarted by an arena deal, would be of great long- term value to the city. But they will cost public money.
Also, the Flames appear to want proceeds from a $ 240- million Community Revitalization Levy, when the city would likely need it all for the West Village.
With no money- hungry project attached, Edmonton could send its CRL money to the arena itself. And tax- rich development — the engine for paying off the levy — is already rising around the arena.
CalgaryNEXT is both more worthwhile and more difficult than the project Edmontonians fought over for years. Now the northern leaders are watching Calgary carefully, hoping something happens here that will score them extra money.
And maybe having a chuckle on the side.