Katz pharmacy sale has online world buzzing

Social media sentiment says Oilers owner should put more into arena

Daryl Katz may have a $920-million public relations problem on his hands.

The Oilers owner sold a chunk of his pharmacy business for that much Monday, and even with a separate $70-million purchase, closed out the day with $850 million more cash than he started with.

That earned him online accolades from some for being “a shrewd businessman,” but raised the question for others: “why are we paying” for the downtown arena?

The general social media senti- ment appears to be that Katz has more than enough to cover, if not the entire $450-million downtown arena, at least the $100-million funding gap.

“I can understand their frustration,” said Coun. Kerry Diotte, who voted against the downtown arena deal, which has the city covering $125 million, the Katz Group $100 million, and patrons $125 million from a ticket tax, leaving a $100-million gap the province has said it won’t cover.

“People are right to look at this latest news and rightfully figure Katz is worth a few dollars, there’s money missing ... why doesn’t he put up some more money,” Diotte said.

But Coun. Bryan Anderson, who voted for the deal, said Katz’s private business deals have nothing to do with the arena.

“He’s just doing business,” Anderson said, adding that the funding shortfall will be covered somehow, whether that’s through lower-than-anticipated construction bids, provincial money for an LRT station or the project’s contingency fund. “It will not come from property taxes that are currently spent on providing services to the citizens of Edmonton.”

A Katz Group spokesman said Monday’s sale does not affect the arena project, and technically it doesn’t, said Coun. Tony Caterina, since there is already a funding framework in place.

The Katz Group’s sale and the arena project are two separate things, he said, but are tied together by the missing $100 million.

“I can start to see the public’s brains turning, wondering why we’re in this deal to start with,” said Caterina, who raised numerous concerns about the deal but ultimately voted in favour of it. “This is just going to put salt in the wound for many, many people.”

Coun. Don Iveson, who voted with Diotte, said he’s always thought there was a better deal to be had.

“It would be nice if he came forward with some additional funds to reduce the amount of public money that’s required, but I don’t see that happening,” he said.