Edmonton council considers fronting missing arena millions

The downtown arena is taking shape, construction is on time andbudget, but city council cannot ignore the gaping $32-million hole in the Rogers Arena plan any longer.

When councillors initially approved the controversial arena project in 2013, they expected the province to pitch in, but after being turned down several times, Mayor Don Iveson said the city should bear the cost.

"We should have all seen this coming," Iveson told councillors Tuesday.

The Capital Region Board supported the city'sapplicationfor a $25 million grant under the province's RegionalCollaboration Program, but the province never approved it.

Ivesonsaid he doesn't want to waste political capital by asking the new NDP governmentfor the money.

"It's just not the right foot to start off with this new government," he said.

Iveson suggested political goodwill with premier-designate RachelNotley and her new government would bebetterspent working toward the city charterand improvements to the YellowheadTrail.

He suggested the city use the downtown community revitalization levy(CLR) to make up the missing millions, which includes $25 million for the arena itself and $7 million for the community rink.

The CRL is collected fromaportion of downtown property taxes, which will be used to pay for certain projects in the core.

"Compared to allthe other things we might do, like use other grants and not be able to fund another project, or just borrow generically and not through the CRL, this is far and away the most financially efficientway for us to bridge this $32 million gap," Iveson said.

Coun. Mike Nickel said he doesn't want any more city money going toward the arena, since his constituents made their opinion clear to him during the last municipal election.

"There was quite a bit of anger at the doors about the whole arena deal from start to finish," he said.

"All the people I was doorknocking said, 'Put no more money into it. That's it, we're done.'"

Nickel said councillors should not make a decision until they know where Rachel Notley stands on the issue. He doesn't think the government will be offended if thecity should ask.

"I think the province takes a much broader perspective," he said.

He said the city should "ask everybody" who might be able to plug the $32-million hole includingthe Katz Group, whichhas contributed $1.4 billion toward the arena district.

The mayor said he has no plans to "shake them down" for more money, referring to the Oilers owner.

"A deal is a deal, and we signed a deal," Iveson said.

Councillors will make a decision about the arena funding in the fall.