Posted Aug 3, 2016, 7:42 PM
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Join Date: Sep 2003
Location: Edmonton
Posts: 2,763
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Quote:
Paula Simons: K-Days cancellation threat by Northlands shouldn't spook Edmonton City Council
PAULA SIMONS, EDMONTON JOURNAL
More from Paula Simons, Edmonton Journal
Published on: August 3, 2016 | Last Updated: August 3, 2016 1:32 PM MDT
Hand over $220 million — or the fair gets it.
OK, so Northlands CEO Tim Reid didn’t put it precisely that baldly at his post-K-Days news conference on Tuesday. But there was a definite whiff of extortion to his statement that Edmonton’s summer carnival will be cancelled, unless City Council approves Northlands latest funding demands.
“If Vision 2020 is not approved, this could be the last K-Days,” Reid told reporters.
Vision 2020, in case you’ve forgotten, is Northlands plan to turn Rexall Place into a community hockey centre with six rinks, to turn the Northlands race track into an indoor-outdoor concert bowl with room for 90,000 to 140,000 people, and to retrofit the money-losing Expo Centre to add a 5,000 seat arena. Total estimated price tag? $170 million.
Oh, and as if that weren’t enough? Reid delivered another ultimatum. Northlands is also demanding forgiveness of the $48 million it still owes the city for the last Expo Centre expansion.
Otherwise? Edmonton’s historic summer fair may well be history.
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In the last few years, Northlands cleared an annual “profit” of between $1.5 and $2 million, even while running one of the busiest arenas in Canada.That number, though, is misleading. Northlands was only in the black because it was getting $20 million a year in provincial and municipal grants. It was also getting a huge rent subsidy, paying just $1 a year to rent the 64 hectares of land, the quarter-section of prime urban land on which it sits – land which could certainly be redeveloped commercially.
Meanwhile, the Expo Centre alone has been losing $7 million a year.
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http://edmontonjournal.com/business/comm...nds-shouldnt-spook-edmonton-city-council
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