City and Katz Group Agree on Agreement Framework to Build Arena
/ Edmonton Oilers
City Council has approved an agreement framework between the City and the Katz Group to build a new downtown arena. The framework sustains NHL hockey in Edmonton for 35 years, supports downtown revitalization and limits the City’s risk.
The terms of the framework will form the basis for the City and the Katz Group to negotiate a formal Master Agreement. Both parties can now also begin to pursue additional funding sources.
“We believe this framework is fair for both sides and reflects what we heard from Edmontonians,” says City Manager Simon Farbrother. “This framework allows us to move forward with this project and ensures that we will continue to align our efforts with what the community has told us are Edmonton’s priorities for this important project.”
“From the beginning we have approached this project with the twin objectives of creating a major engine to drive the revitalization of downtown and of creating a model for the long term sustainability of the Oilers in Edmonton,” says Katz Group Executive Vice President Bob Black. “City Council’s decision is a watershed moment that puts us on a path towards achieving these objectives. There remains a lot of hard work ahead to conclude a definitive agreement and we are anxious to do so as soon as possible.”
The framework closely reflects the terms and conditions outlined by Council in the motion passed at their April 6th meeting (www.edmonton.ca/downtownarena).
Among the key highlights:
The price for the arena building is set at $450M
The City’s contribution to the building is $125M
The Katz Group will contribute $100M
$125M will come from a user-paid facility fee
The City will own the building and land
The Katz Group will operate the building and be responsible for all maintenance, upgrades, operating and capital expense costs
The Oilers will remain in Edmonton for at least 35 years
This framework does not constitute a final and binding agreement. Both parties will now begin to work on the Master Agreement to advance the project further, including by working to secure the remaining funds required.