Reminder
Funding Model
City Council has approved the master agreement negotiated by the City and the Katz Group (owner of the Edmonton Oilers), to build a new arena in downtown Edmonton.
The agreement sets the design and construction budget for the arena at $480-million and will not result in increased property taxes or a reallocation of civic infrastructure dollars.
1. $130-million from the Katz Group
The Katz Group will provide $130-million of financing for the arena. They will contribute another $100-million, subject to commercial viability, to spark development in an entertainment area adjacent to the arena.
2. $125-million from a ticket surcharge
$125-million would be raised through a surcharge per ticket for every event held in a new arena. The fee will be administered by the Katz Group, who will remit $125-million to the City towards the cost of construction, plus a $1.5-million annual contribution to the City for ongoing major capital expenditures.
3. $200-million contribution from the City
The City will contribute $200-million towards this project, a portion of which will be raised through a community revitalization levy (CRL).
The downtown CRL will fund $120-million of the City’s contribution. The other $80-million will be funded through the increase in parking revenues from City-owned parking near the arena, property taxes on the arena, and redirecting the subsidy that the City currently pays to Rexall Place to the downtown arena.
4. Other sources
Members of the Capital Region Board representing 95% of the region's population supported Edmonton in applying for its allocation under the provincial Regional Collaboration Program. The City will submit the application as soon as the program's guidelines are defined.
http://www.edmonton.ca/city_government/projects_redevelopment/arena-funding-model.aspx
More detailed.
http://www.edmonton.ca/city_government/projects_redevelopment/the-agreement.aspx