Edmonton Journal

Council votes to forgive Northlands’ $47-million debt

Deal provides stability for employees and facility as it tries to plot its future

- ELISE STOLTE estolte@postmedia.com

Edmonton city council voted Tuesday to forgive Northlands’ $47-million debt outstandin­g on the Expo Centre and merge its operations with the Shaw Conference Centre.

That means the 500,000-squarefoot conference centre and banquet facility near the Coliseum will be run by the Edmonton Economic Developmen­t Corp. (EEDC) starting Jan. 1, 2018.

“We’ve worked very hard to get a smooth transition,” said Mayor Don Iveson.

He said the deal ensures Expo Centre staff will work for EEDC in January.

“I hope that comes as a reassuranc­e to the people working there,” Iveson said. “I realize that uncertaint­y has been difficult.”

The new debt will cost Edmonton $4 million a year and is already included in the city’s operating budget, said Iveson.

The city guaranteed the debt when the loan for the most recent expansion was taken.

That meant the city had little choice but to take back the debt once Northlands couldn’t pay. Northlands lost a key income source when the city built Rogers Place for the Edmonton Oilers.

“We are grateful for their vote of confidence in our organizati­on,” EEDC CEO Brad Ferguson said in a news release.

The city is still negotiatin­g what to do with the Coliseum and Northlands Park, where horse racing is scheduled to continue at least until a new race track is built outside the city. Council expects another report on the future of the Coliseum Sept. 12.

Ward 7 Coun. Tony Caterina, whose ward includes Northlands, said the deal is a win for everyone, including the city, because it ensures continuity. Officials can continue to book events and conference­s for the two facilities.

He said Northlands is planning a staff update to share the news Wednesday morning, estimating the change impacts about 400 staff.

Northlands officials have previously said they need certainty so they can refocus on a new business strategy: a community food hub and research innovation centre on the current Northlands campus, plus expanding activities around Farmfair Internatio­nal.

“The Coliseum, Rogers Place, the city, Katz Group — it’s all intertwine­d,” said Caterina.

But for him, the core of the debate needs to be what happens to the 65-hectare Northlands site, he said. The city is working on a redevelopm­ent strategy for that land now.

“Everything has to fit in that context,” Caterina said.

I hope that comes as a reassuranc­e to the people working there. I realize that uncertaint­y has been difficult.

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