Katz Group asks city for $10M toward Ice District
Edmonton officials will start talking with the Katz Group about potential city funding for the Ice District plaza after a tense in-private debate Wednesday at city council.
The debate at the closed-door meeting ended with a public 9-4 vote in favour of at least talking with the Katz Group about its multimillion-dollar pitch.
Multiple sources speaking on background said the Katz Group started with a $10 million ask, but city officials said they could only see $2 million to $3 million that would qualify for council’s consideration.
City officials brought the matter to elected officials in private, asking if council wanted them to start negotiating with the developer.
Edmonton could pay for public washrooms and electrical upgrades to allow outdoor concerts to be hosted easily.
In return, the city could secure public access to the plaza for major events and ensure it was built to be family-friendly, possibly including a children’s play area.
The Katz Group has not yet responded to Postmedia request for comment.
Councillors Mike Nickel, Aaron Paquette, Tony Caterina and Jon Dziadyk voted against the motion.
Sources said some councillors were frustrated with the request during the debate — angry more city dollars would go to a private developer who already secured a deal to help finance the arena.
Other councillors saw the request as part of the normal course of business for the city, which already has deals with other developers to build pedestrian-oriented streets in major infill projects. Council signed a deal for the Muttart Lands south of Stadium LRT station and is negotiating with a developer in Strathearn.
“We’re opening the door to a conversation,” Coun. Sarah Hamilton said Thursday, stressing that nothing has been decided.
Anything agreed to would have to come with clear public benefit to Edmonton, said Coun. Scott McKeen, who represents downtown.
Ice District developer and Oilers owner Daryl Katz became a polarizing figure after the arena deal, which saw the city borrow to help build the arena and make other downtown improvements. The plan pays off that debt with the future increase in taxes through a community revitalization levy, which could also be used for the plaza upgrades.
The plan is doing better than forecast, largely because of the major investments Katz made around Rogers Place. The Edmonton Tower is already open, while the Stantec Tower and J. W. Marriott are under construction.
“The catalyst effect of the arena has been pretty remarkable,” said McKeen, suggesting that with any big project like this, Edmonton residents should expect to see a developer return to council multiple times as plans progress.
“Why would we turn down an opportunity to listen to a proposal?” he said. “I don’t think it would be a smart position to treat them like they’re radioactive.”
Dziadyk, one of those who voted against proceeding with talks, said Thursday he won’t support more public investment in the downtown arena project.
“Right now we have a lot of other issues with the city and I’m supportive of concentrating on other aspects of the city other than the Ice District,” he said.