The Edmonton City Council Wednesday night "passed the puck on the downtown arena plan" for the Oilers, "ordering administration to hammer out a deal with more than a dozen conditions," according to Michelle Thompson of the EDMONTON SUN. Seventeen conditions were listed in a motion allowing the city to engage in financial negotiations with the Katz Group, including one that "requires the Oilers to play at the arena for the next 30 years." The city-owned arena "will be leased to the Katz Group, which will be responsible for operating costs and generating revenue." Oilers Owner Daryl Katz committed to spending $100M (all figures Canadian) on the project, while the city said that it could fund $250M "through measures such as a community revitalization levy and ticket tax." But that leaves a $100M shortfall, and the motion "states the project can't proceed until stakeholders come up with the remaining cash" (EDMONTONSUN.com, 4/7). Katz has said that he "hasn't agreed to any ticket tax yet" (EDMONTONSUN.com, 4/7).
LET'S MAKE A DEAL: In Edmonton, Terry Jones writes, "It would be wonderful, now, if Katz, who has not shown any negotiating style other than hostile takeover/gun-to-the-head/implied-threat etc., could actually seize the moment and concede he has the structure for a more-than-decent deal here, and move forward. When it comes to public perception, Katz has been his own worst enemy. This might be the Oiler owner's last chance to ever end up being embraced by Edmonton as Good King Daryl" (EDMONTON SUN, 4/8). Also in Edmonton, Mindelle Jacobs writes, "Why can't Katz build his own arena? ... Just because it's common in the U.S. for public subsidies to flow to professional sports teams doesn't mean Edmonton should go down that road" (EDMONTON SUN, 4/8).
MOVING ON: Northlands President & CEO Richard Andersen, whose company operates Rexall Place, said that "losing the Edmonton Oilers to a new home won't necessarily hurt Rexall Place -- it could even help it." Andersen: "It would be hard for me to believe we wouldn't be more profitable. In fairness, they take up 130 days of the calendar year and for 130 days, we don't make money. We lose money." Under the lease agreement, the Oilers "retain most profits" (EDMONTON SUN, 4/8). Andersen added of the impact of the Oilers' potential departure on the arena, "I think financially it would be very positive. The reality is, in a purely business perspective ... we built this business (and) we intend to maintain it" (EDMONTON JOURNAL, 4/8).
