Edmonton took major steps in late October toward the construction of a new downtown arena.
Following approval of a financial framework for the $450 million arena - the city will pay $125 million directly to the project, and $125 million will be generated by a ticket tax - the city moved ahead with $41 million in land purchases to accommodate the arena and related developments.
The Katz Group, which owns the NHL's Edmonton Oilers, is committing $100 million to the new city-owned arena, while the city plans to keep chasing federal and provincial contributions to generate the remaining $100 million for its arena budget.
The city has defended the land purchases for the arena site and surrounding amenities, which amount to almost 16 acres.
"Owning the land around the arena allows the city to have greater control over the type and pace of development," said city manager Simon Farbrother. "In the end, the city will only own the land needed for the arena and associated infrastructure. Buying the rest now is strategically important for development in the area, and the city will sell it at the appropriate time."
from Western Investor December 2011
