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Edmonton’s Upcoming Fiscal Black Hole
Edmonton needs a new hockey arena about as much as an elephant needs that desperately sexy pair of high heels. Before breaking metaphorical language any further, lets look at the price tag for this boondoggle in waiting. Thanks to the Edmonton Journal for the numbers.
All in, $601 million. That breaks down as:
– Arena construction, $480 million
– Winter Garden pedestrian bridge across 104th Avenue, $53 million
– Arena land, $25 million
– Community rink attached to arena, $21 million
– Pedestrian corridor through the arena, $15 million
– Link to MacEwan LRT station, $7 million
$601 million so we can have rubber disk chasing in our downtown core. I know I am terribly excited over the entire notion. What is even more exciting is who gets to pay for these shiny new elephantine high-heels.
– The city: $219 million ($140 million for the arena, $25 million for the Winter Garden, $25 million for the land, $15 million for the pedestrian corridor, $7 million for the LRT and $7 million for the community rink).
– Katz Group: $143 million ($115 million for the arena, $28 million for Winter Garden).
– Ticket buyers, through a surcharge: $125 million.
– The province: $107 million ($100 million for arena, $7 million for community rink).
– The feds: $7 million for rink.
What is interesting to me, and by “interesting” I mean peeved, is that I fall into three categories that are donating to the Rubber Disk Arena construction fund. I reside in Edmonton and thus pay municipal taxes, Edmonton also happens to be in Alberta thus I pay provincial tax aaaaaand Alberta happens to be in Canada and ‘Lo I also pay federal taxes.
Therefore, I get to pay $335 million while the dude that owns the team chips in $143 million to build a house for his team and he will get to keep all the revenue generated once the Rubber Disk Arena is built. I need to get on the same plan as the Edmonton Oilers Owner; you know the one where you get to use public money to take the majority of risk and build stuff that will make me money once its built.
As the person indirectly responsible for funding this bedazzling misadventure, it would be sensical to point out that if private industry wants to build a new Rubber Disk Chasing Emporium, they should damn well pay for it themselves and not expect the public to fund their private ventures.
(ed. Very proud not to have used the words “fucking insane waste of public money” in this article.)
Edmonton taxpayers are going to be fleeced without affection or mercy by the Katz Group. This has been in the cards since this atrocious deal was pre-approved last year. Having done some reading though, we can still pull out of this money trap and it looks as if Katz is giving us the golden ticket out. Tony Caterina said in today’s Edmonton Journal:
“The company’s new demands aren’t just for more capital dollars and an ongoing $6-million subsidy for the proposed arena, Coun. Tony Caterina said.
“They don’t want to pay taxes,” he said. “They want help now in operating the arena. They want a guaranteed subsidy. They want the city to be their tenant in a major office building. They want the casino licence.” These were the requests presented behind closed doors last week in a meeting Caterina said should have been public.
“If everybody knew exactly what these new positions were, I think everyone would have seen it as council saw it, which is very unreasonable.”
You don’t say.
This entire arena process has been about trying to get the best possible terms for the legalized blackmail of the the city of Edmonton from Day 1. Otherwise Katz and company are going to move the team. Good. Go. There are myriad of other city projects that actually help the city that need funding, the LRT, Low Income housing, road repair are all in need of more cash. If Katz wants to have a new arena, he can pay for it himself.
The other option is that the city of Edmonton builds and OWNS the arena and gets ALL of the revenue benefits from the complex, plus rent from Oilers.
I’m not hearing a lot from the usual right-wing suspects about the arena because, of course, socialism for the rich is just fine. If this was funding a school or a woman’s shelter I’m sure the hemming and hawing would already be loud and clear, building toward the usual “fiscal crisis” Armageddon they manufacturer when tax dollars are spent on the disadvantaged.
Woo! It is lock out time for the NHL and not a moment to soon. The great showdown between millionaires is about to begin supported by the gullible hockey fan. Just take in the love they have for fans as they gouge you for parking, beverages and food. Oh and ever higher ticket prices, let us not forget that.
“Damage from another lockout will occur almost immediately, and there is no telling how jilted fans and sponsors will react to another shutdown, especially if it stretches through the fall and into the winter.
Management’s latest offer has a short shelf life. Once the lockout begins, Bettman says the economic damage would cause owners to offer players a less beneficial deal.
Players currently receive 57 per cent of hockey-related revenue, and the owners want to bring that number down as far as perhaps 47 per cent — which is an increase from their original offer of 43 percent.
“The fact is, we believe that 57 per cent of HRR is too much,” Bettman said.
The union offered a deal based on actual dollars, seeking a guarantee of the $1.8 billion US players received last season. Annual industry revenue has grown from $2.1 billion to $3.3 billion under the expiring deal.
Players are concerned management hasn’t addressed the league’s financial problems by re-examining the teams’ revenue-sharing formula. Having made several big concessions to reach a deal in 2005, the union doesn’t think it should have to make more this time after record financial growth.”
It is you, the fan, paying for all these rubber disk chasers and yes you might be pissed off now, but you’ll come crawling back and they *KNOW* that. Maybe this time they won’t spread rice on floor before you prostate yourself once again to the hockey gods, and you’ll be happy.
bleatmop
Mystro
The Arbourist
Dead Wild Roses 
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