Downtown levy could raise millions for arena: report

A community revitalization levy, or CRL, can raise $1.18 billion over 20 years for the new arena and other downtown Edmonton projects, according to a new city report released Thursday.

"Edmonton's downtown represents one per cent of city's land area, but ten per cent of the property values," said Gary Klassen, the city's general manager for sustainable development. "The health, its vibrancy, is important to all Edmontonians."

The city estimates $45 million of the levy could go to construction of the $450 million arena and another $52 million could be used for other arena-related costs, like buying land and building a connection to the LRT.

The city has earmarked another $269 million for another ten projects within the zone, which is bounded roughly by 97th and 109th Streets and 106th and 100th Avenues.

Some of the other projects include sidewalk improvement and widening along Jasper Avenue, a park in the the so-called "Warehouse Campus Area" in the northeast corner of the CRL zone, and river valley promenades.

The executive director of the Downtown Business Association, Jim Taylor, thinks the CRL is a great idea.

"It's a good way to fund what's needed for the arena and fund projects that are very near and dear to my heart," Taylor said.

A CRL is a controversial practice based on the belief that a public project such as an arena would encourage new businesses to spring up around them. The resulting increase in property taxes from those developments are then funneled back into the area.

Councillors will discuss the report next week. In addition to the arena, they will have to pick and choose which projects will go ahead.

Under a framework deal reached in May with arena proponent The Katz Group, the city agreed to contribute $125 million to the project.

Another $125 million will come from a user-paid facility fee. The source of the outstanding $100 million still hasn't been determined.