City Needs Champion

“Having the Wolfgang Puck’s type of restaurants in the arena is very appealing – as opposed to corn dogs.”

While the committee was on its tour, a surprise twist added new fuel to the downtown arena fire. Rexall pharmacy chain founder Daryl Katz, whose business holds the naming rights to the Edmonton coliseum, put in an offer for the Oilers and later a promise of $100 million towards a new facility. At last the arena had its backer. But Katz is the opposite of a Wild Bill Hunter: he’s got the money, but not the willingness to promote the vision. To the public, at least. Behind closed doors he pleaded a case to reluctant Edmonton Investment Group shareholders who finally sold into his promise of a cash-flush, Stanley Cup winning hockey team housed in an iconic arena. The self-made businessman is worth an estimated $2.5 billion. Until the Oilers takeover forced him into the spotlight, he rarely granted interviews and issued his statements either by press release, conference call or through third parties. Arena momentum was building, but a champion had yet to emerge.

POPULATIONS THE SIZE of Edmonton and Calgary can’t support two coliseums. Minneapolis-Saint Paul is an example of an area struggling with two full-scale facilities that compete fiercely against each other, and neither the better for it.

The proposals for the existing Rexall Place are to tear it down and redevelop or repurpose it for a completely different use. If it stays, the two arenas would most likely have to sign a non-competition agreement. Northlands is in the midst of a multimillion-dollar expansion to its exposition facilities adjacent to the arena. The entire site is already Edmonton’s second-biggest tourist draw, after West Edmonton Mall. On a list that includes Wembley Stadium and Madison Square Garden, the Northlands site ranks 12th in the world for entertainment venue attendance. The Canadian Finals Rodeo alone draws 92,000 people over six days. So there are dissenting voices, such as University of Alberta chair in the economics of gaming Brad Humphreys, who say, despite the hype about new revenue streams and economic drivers, a downtown sports facility would bring no new money to the city. It will just move the same pool of money from one location to another. “The economies of cities that lost teams didn’t do any worse,” said Humphreys, who spoke at the sports facilities in urban development conference. “And during strikes in professional sports, there is no evidence that the economy suffered.”

At $450 million, a new Edmonton coliseum would be the most expensive arena in the country. Compare to Toronto’s Air Canada Centre at $265 million, Montreal’s Bell Centre at $270 million and Vancouver’s GM Place at $160 million (all, incidentally, 100% financed by the private sector).

A further complication is that Edmonton and Calgary are behind the ball. Ground has to be broken in the next two years if the downtown arenas are to be completed in time for the Flames’ and Oilers’ lease expirations in 2014. Edmonton at least has the feasibility study and $100 mil under its belt. Flames president Ken King is much vaguer. He says Calgary is doing “lots of things” to prepare for a new arena. But he won’t comment further.

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