City council has received written answers from the Katz Group about the proposed downtown arena project.
A week after billionaire Daryl Katz appeared before city council in mid-July making his case for a downtown arena, city councillors submitted dozens of questions about the project.
As the Katz Group stood before council back in the summer, they reiterated to councillors that Katz is prepared to put $100 million directly into a new downtown arena, as well as pledging another $100 million to the development of the area.
Some councillors were hoping to get more information about Katz' financial situation but the group isn't disclosing any of those details.
"We are not going to debate those answers in public because those answers are for council and we look forward to talking to council about those," said Katz Group spokesperson Steve Hogle.
One option that is still being considered is a community revitalization levy where property taxes around the arena district would help pay for construction.
Some members of council have concerns about the levy and the lack of a guarantee that if the city helps fund the arena, a surrounding entertainment district would be built at the same time.
"How do we make that C.R.L work? I thought you needed a guarantee on servicing the debt -- that's why I asked the question and that's what other cities have had challenges with," said City Coun. Kim Krushell.
The Katz Group has expressed it is seeking a partnership with the city where financial risk would be shared.
"Neither the city nor the Katz Group should bear risk disproportionately," the Katz Group states in the report.
"Obviously from the city's point of view if we can mitigate our risk to the maximum level, that would be an objective that we would be following," said city manager Simon Farbrother.
In the report, the Katz Group also stated it would still like the city to own the new arena and it would handle the operation of the facility as well as all operating costs.
And when asked how the arena and surrounding developments be profitable to both the Katz Group and the City of Edmonton, the group said it's confident the arena can be financed without an increase in property tax rates.
The Katz Group believes "a new and significant stream of property tax revenue will continue long after the city's debt is repaid."
"We are also confident that there will be sufficient operating revenues from the arena to ensure long term financial sustainability of the Oilers."
The Oilers would like to play in a new facility by 2014, but the city isn't in any rush to make that happen.
"You know if that ends up being 2014 or mid 2015, I think at the end of the day the bigger issue is what's the right decision," said Farbrother.
The Katz Group also believes that it is not viable to have two arenas in Edmonton.
The report will be presented to city council on December 10th, the same day Northlands appears at city hall to make its case about a new arena.
Some councillors would now agree it may be some time before all parties come to an agreement on a funding model.
"I would suggest February would be really pushing it but maybe I am wrong," said Krushell.
The city has made the report available to the public by publishing it on its website.
With files from Sonia Sunger
