A day after City Council turned down a Katz Group request to add more public money to the downtown arena project – the Mayor is shedding more light on the status of the issue, without giving too much away.
Despite rumours the rising price tag was at the centre of the issue, Mayor Stephen Mandel said it’s low on the list of problems plaguing the deal.
When asked if he thought the arena would be built, Mandel said he hoped it would.
“I hope so, I’ve worked, been passionate about it, taken criticism about it,” Mandel said Thursday. “I think it’s vitally important for downtown, vitally important for stabilizing, in creating a long-term stable NHL franchise here, which Edmontonians are passionate about.
“The level in which we go, the building is not the issue.”
The rumours over the building cost were fueled late Wednesday by a statement from the Katz Group, which said a world-class arena can’t be built for $450 million – the maximum price that was set for the project in October, 2011.
One number being attached to the rumour was $470 million.
“That’s not even an issue, whatsoever,” Mandel said. “If it came down to splitting $20 million I would be surprised if council didn’t say ‘that is okay’, but that’s not even in the top 20 of problems.”
Mandel stopped short of elaborating on the amount of money that was asked for – and would not share further details, citing the ongoing negotiations with the Katz Group.
A source on council told CTV News the Katz Group wanted to drastically change the original deal – which addressed operating costs and annual revenue.
A meeting was held Thursday between the Katz Group and city officials – it’s not clear when City Council will be briefed on the status of negotiations.
With files from Kevin Armstrong
