October 24, 2012

Edmonton arena deal nixed

The owner of the Edmonton Oilers says he doesn't know what comes next after city councillors rejected his last-minute demands for millions more taxpayer dollars and walked away from a deal for a new downtown arena.

In a two-sentence press release, Daryl Katz said he is concerned about the implications of the deal effectively collapsing, but remains hopeful they can reach a solution.

Construction was set to begin next year on a new downtown rink.

It would be built by the city while the Oilers would run it, pay a lease fee and keep almost all the profits.

That deal went into limbo last month when Katz said he’d had another look at the numbers and needed, among other concessions, $6 million more a year from taxpayers.

Mayor Stephen Mandel said the deal collapsed because Katz would not budge from his demands and would not provide the financial details to prove the extra $6 million was needed for him to turn a profit.

Mandel has said the only way the process can move forward is for Katz or his officials to meet with council in public to explain why they need the money.

News from © Canadian Press Enterprises Inc., 2012

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