Edmonton Construction 13 (November 2015)

[Hallsy's Toupee]

http://edmontonjournal.com/news/local-ne...warns-this-past-k-days-could-be-the-last

Northlands president and CEO Tim Reid warned this past K-Days could be the last should city council fail at the end of the month to reach a decision that would allow Northlands to generate new revenue.

“The reality of it is, with the introduction of a new arena, our business model has changed. So, if we can’t find some time, which is really what we are asking from council, then we will be in a position where this may very well be our last K-Days,” Reid told a press conference Tuesday.

The opening of Rogers Place this fall will effectively bring an end to business at Rexall Place which has generated around $50 million in revenue every year for Northlands, a non-profit that operates the arena and the 64-hectare property around it.

Northlands is also getting out of horse racing at the end of 2016 due to dwindling profit margins. It had generated about $60 million in annual revenue for Northlands.

The non-profit organization presented Vision 2020 to council in March as a solution that it believes could save the 137-year-old organization from bankruptcy.
“We won’t be the next not-for-profit that finds itself in the red,” said Reid, adding, “our board of directors have been clear in their messaging that. If we can’t find a path forward, where we as an organization offer value not only to the northeast but also to Edmonton and northern Alberta, then we would wind down our business.”

Coun. Andrew Knack said council has concerns with the Vision 2020 plan presented in the spring, including the viability of sustaining such a large festival space and whether Northland’s situation is dire enough for the city to forgive all of the $47-million debt at once.

[MalcolmTucker]

I like how they talk about revenue, but not profit. Revenue is useless information for figuring out whether there is an actual problem or not.

[EdmTrekker]

Goodbye Northlands...so when it goes — up ... what do you think is being planned in the backroom of City Hall for reuse of the land or some P3 business arrangement? Do we have another Blatchfield disaster in the making at the hands of Council and Mayor?

[technomad]

Originally Posted by MalcolmTucker

I like how they talk about revenue, but not profit. Revenue is useless information for figuring out whether there is an actual problem or not.

profit is capitalist concept, is not apply to Glorious Peoples Republic of Notleygrad


I gave them all my spare change in the redev survey, but if they want revenue... I think they could redo the race track to be a combo racing/concert site, really don't want to see the ponies leave town, but the site is very underused, so having outdoor concerts, festivals and the like there at an LRT accessible site would be great. An outdoor Beerfest at Northlands would be so much better than stumbling around the dim halls of the Shaw..

I like the coliseum reno in concept.. but not convinced it will ever pay for itself

And while the residential component of the SW corner is good, adding another LRT stop and 'planing' to build a bunch of towers north of Borden park is pure wasteful fantasy, only eclipsed by some of the original Blatchford plans. At the current burn rate, we have decades to go before all the existing sensible spots for towers are even close to being filed..

[itom 987]

I wonder if it would be possible to change the racetrack into a NASCAR racetrack?

[240glt]

Oh god no

[hilman]

Gee what a surprise, NL has their hand out yet again. The $75 million given to them on top of the COE co-signing and paying the other $75 million upfront for the Expo Centre wasn't enough apparently. Looks like we will be on the hook for that half of the building now and they are trying to strongarm us by threatening to pull the plug on K-Days, disgraceful organization....

[Coldrsx]

^right! Using a very profitable and city 'amenity' such as K-Days as leverage, really... wow.

[240glt]

Meh. We gave hundreds of millions to a billionaire. This city seems intent on wasting money so I see no difference between all the other wasteful expenditures this city has funded and this particular ask

The city created this mess, they can sort it out. All the bellyaching about Northlands and K days really just affirms that this city is really still just a small backwater town, and the reason this city has no culture is because we don't deserve it, and Edmonton will continue to be the laughing stock of the rest of Canada

[Coldrsx]

^you don't just compare those did you?

More like how some organizations act, not indicative of the city, sorry.

[240glt]

It's the same turnip cart in the eyes of the masses, so it is what it is. Bury your head in the sand at your own peril

[Coldrsx]

That's certainly a generalization, but I suppose those glasses of the malaise might show that.

[hilman]

The NL organization is a money sucking leech that continuously needs handouts like the Expo Centre, horse racing grants, etc and cannot be self sustaining. They rely on government money to fund all aspects of their business. On the flip side, the deal with Katz is already paying back dividends with $2.5 BILLION in construction right now (just to start) with many synergetic effects already being seen. What exactly has NL done besides extort money from all levels of government????

As non-profit organizations, the Calgary Stampede and Edmonton Northlands each received $7.67 million in annual grant funding from Alberta Agriculture and Rural Development for events like the Calgary Stampede, K-Days and the Canadian Finals Rodeo but changes to ministerial oversight of the Major Fairs Program mean the grant cheques will now be signed by Culture and Tourism Minister David Eggen.

http://www.edmontonsun.com/2016/01/29/gr...overseen-by-culture-and-tourism-minister

Northlands finished 2015 with a $2.5 million surplus, but that includes $19 million in government grants. The auditors reviewing the organizations books however focused their concerns on its future.

http://www.metronews.ca/news/edmonton/20...n-northlands-ability-to-stay-afloat.html

Reid is also looking for $165 million in government grants to redevelop Rexall Place, expand the Expo Centre’s existing concert facility to 5,000 seats and convert the existing horse racing track into an outdoor festival venue.

http://edmontonjournal.com/news/politics...hlands-may-be-best-bet-to-redevelop-site


$19 million a year in grant on top of the $150 million for the Expo Centre, and now they want ANOTHER $165 million to change business models and the NL cheerleaders don't see a problem with this? The hypocrisy from the NL fanboys is mind boggling.

Maybe it's time for NL to head out to the pasture (see what I did there....).

Comparing the Katz Group to Northlands is a complete joke (just like the NL organization).

[240glt]

^^ like I said, at your peril. No skin off my a$$ on this one. My investment in this city is complete, just waiting now.

But I do know what the folks on the outside looking in think, and it ain't flattering

[Coldrsx]

^clap clap clap.

[240glt]

is what it is

[s4.audios]

Really the only venue there worth saving is the Expo Centre. I don't know the financials but I can't see how it can be so unprofitable. It's a great venue and full of events year round. Is it all the lands and investments around it that is sucking the life out of this place? Just sell a bunch of parcels to private investors and be done with it.

Their vision 2020 or whatever it is called looks amazing but it is too long term, and I'd rather see that much investment in towers to go closer to the core.

Let them flop, city takes over Expo, sell rest of land. Done.

[240glt]

Well the 100,000 person concert lands is a ridiculous idea to begin with. I will bet you'll see that whole site transitioned to a mixed use development. Better location and potential that Blatchford here

Expo is a nice facility, but I'd hate to see EEDC run it, they do a pretty poor job of the Shaw, NL is actually a better venue operator than they are

Parcel out the rest.. Hotel, convention, student res.. That is fine

[EdmTrekker]

Originally Posted by 240glt

is what it is

I agree with Cold on this one ... putting all we in Edmonton have created in the same basket as the Northlands issue is silly.

I can recall when at the start of the arena discussion - the public was agast with concern including whether the Oilers would even stay. Look how far we have come on just that 1 file..a huge success by any measure. There were side effects of the new downtown arena and we all know that Northlands had its legs pulled out from under it...and is struggling to find a path forward. That said, the public debacle that Northlands has/is creating will result in change: and it will be good or great change. What that is remains to be seen and City Council and the Public will have a LOT to say what that should be - not just the old boys club at Northlands.

[240glt]

^ i think you're giving a lot of credit where very little is due

A very C2E perspective at the very least, hardly reflective of the larger reality