So far, negotiations for the downtown arena project have continued behind closed doors – now, city council believes the company is trying to change the deal, and they want Edmontonians to see it first-hand.
An agreement between the City of Edmonton and the Katz Group was reached in October, 2011 – to spend a total of $450 million on a downtown arena, with the Katz Group paying $100 million over 35 years.
Last week, City Councillors said they were thrown a curve ball – council was apparently told the company is looking to add more concessions to the deal, including additional money for construction, a $6 million annual operating subsidy, a break on property taxes and a promise from the city that civic offices will move to the new tower to be built by the company.
“It’s very frustrating when we’re dealing with something that is clearly a public debate,” Councillor Ben Henderson said. “To be honour-bound because of the nature of the way these negotiations happen.”
On Tuesday, after an interview with Daryl Katz and the Edmonton Journal came out, Mayor Stephen Mandel issued a statement inviting the Katz Group to negotiate the downtown arena project in public.
“This gives the Katz Group the opportunity to come to city council to outline what they see as deficiencies in the deal,” Mandel said.
“I mean, I think that the deal we gave them was quite good to be honest with you.”
By mid-afternoon Wednesday, Mandel said he had not heard from the Katz Group.
CTV News approached the Katz Group for comment on Wednesday, but was turned down.
With files from Bill Fortier
