High-stakes fight over new arena

The downtown arena soap opera had more highs and lows in 2012 than Nikolai Khabibulin’s goals-against average.

Last spring, the building’s oil-drop design was released to mostly positive reviews and councillors voted to push ahead with work on the now $475-million project.

Things seemed on track to complete a deal by yearend with Oilers owner Daryl Katz.

But behind the scenes, Katz was asking for a $6-million annual subsidy and other changes to a 2011 agreement framework, moves he said were needed to make the project financially feasible for him.

When councillors were secretly briefed on his proposals in September, they balked. No concessions.

Katz responded by taking a highly publicized trip to Seattle with team officials the same day that the Washington city approved construction of its own arena.

Edmonton fans went ballistic at this implied threat to move the Oilers.

Katz bought full-page newspaper ads to apologize, but refused to meet with city council to explain his position, because he said the two sides were too far apart.

In October, council broke off negotiations. Hopes for a deal appeared to be fading as councillors pondered their options, including building the facility alone.

However, arena supporters received an early Christmas present when Katz Group executives appeared at council Dec. 12 to put the talks back on track.

They dropped their subsidy proposal (although they want to look at other sources of financial help), agreed to mediation and asked the city to come back to the bargaining table.

The next update is due Jan. 23. Coun. Bryan Anderson has said time to reach a deal is short because the council chosen in next October’s election might be less sympathetic to the project.

Will shovels be in the ground this April, as the Katz Group hopes? Stay tuned.