Edmonton council considers fronting missing arena millions

The downtown arena is taking shape, construction is on time and budget, but city council cannot ignore the gaping $32-million hole in the Rogers Arena plan any longer.

When councillors initially approved the controversial arena project in 2013, they expected the province to pitch in, but after being turned down several times, Mayor Don Iveson said the city should bear the cost.

"We should have all seen this coming," Iveson told councillors Tuesday.

The Capital Region Board supported the city's application for a $25 million grant under the province's Regional Collaboration Program, but the province never approved it. 

Iveson said he doesn't want to waste political capital by asking the new NDP government for the money. 

"It's just not the right foot to start off with this new government," he said.

Iveson suggested political goodwill with premier-designate Rachel Notley and her new government would be better spent working toward the city charter and improvements to the Yellowhead Trail.

He suggested the city use the downtown community revitalization levy (CLR) to make up the missing millions, which includes $25 million for the arena itself and $7 million for the community rink.  

The CRL is collected from a portion of downtown property taxes, which will be used to pay for certain projects in the core.

"Compared to all the other things we might do, like use other grants and not be able to fund another project, or just borrow generically and not through the CRL, this is far and away the most financially efficient way for us to bridge this $32 million gap," Iveson said.

Coun. Mike Nickel said he doesn't want any more city money going toward the arena, since his constituents made their opinion clear to him during the last municipal election. 

"There was quite a bit of anger at the doors about the whole arena deal from start to finish," he said.

"All the people I was door knocking said, 'Put no more money into it. That's it, we're done.'"

Nickel said councillors should not make a decision until they know where Rachel Notley stands on the issue. He doesn't think the government will be offended if the city should ask. 

"I think the province takes a much broader perspective," he said.

He said the city should "ask everybody" who might be able to plug the $32-million hole including the Katz Group, which has contributed $1.4 billion toward the arena district.

The mayor said he has no plans to "shake them down" for more money, referring to the Oilers owner.

"A deal is a deal, and we signed a deal," Iveson said.

Councillors will make a decision about the arena funding in the fall.