The Arena Games Must Stop Now
The arena issue has always been an odd news item, but things really got turned on their head this week with a couple examples of astoundingly bad public relations manoeuvring by the Katz Group.
First, the news came out on Thursday that the Katz Group has been looking at locations outside of downtown, such as the Enoch reserve, in the event negotiations with the city break down. Which they already have—we’ll come back to that later.
Then on Friday CBC reported that the Katz Group phoned provincial MLA offices and offered to help provide information to constituents about possible provincial funding for the arena. If nothing else, this is a clear sign that the Katz Group has shifted its focus to the provincial level. Given that pretty much every PC leader candidate has shot down the idea of provincial funding for a downtown arena it’s a tough sell, but we can’t blame them for trying.
There’s a reason for these desperate moves—negotiations between Council and the Katz Group have been a complete failure thus far. City Council wasn’t comfortable with either killing the project or ponying up and approving it outright, so they basically passed the buck up to the provincial government in the hopes they’d put up the missing $100million and save the city and Katz Group the trouble of actually negotiating. The provincial government has at no point said they were willing to provide the money, but I guess Stelmach’s “no” looked a little bit like “maybe” when compared to the federal government’s “NOOOOO” spelled out in ten-foot flaming letters.
The Katz Group’s decision to say they are looking at other sites in the capital region was a terrible idea. First, they’ve said from the start that this project is about revitalizing downtown, and this move makes it all look like a smokescreen. Second, they wouldn’t get the $125m the city has already pledged to the project. So, did they even need this money if they say they can build elsewhere without it? More likely, it’s another in a long line of bluffs, including the trip to Quebec City, claim that the Oilers are losing money, and threatening to move the team. These sorts of moves are quickly burning up the Katz Group’s goodwill with the public and council.
Council and the Katz Group need to call mulligan right now and draw up a new plan that doesn’t involve waiting for provincial money that may or may not ever come. In my opinion there’s no politically tenable way for the city to kick in more money without a corresponding taxpayer benefit. It’s obvious the Katz Group wants all the revenue of the arena to themselves—who wouldn’t? But they need to realize that if they can’t make the whole payment then they can’t take the whole profit. Maybe it’s time to consider going halfsies with the city—halve the costs and halve the profits.
It’s time for Mr Katz to realize that 50% of something is more than 100% of nothing.
I agree, it seems like Katz has made some poor PR decisions. I also agree that Katz will have to find a way to share revenues if they are expecting public money.
[...] Charrette has a good discussion of the recent arena news. You’ve probably heard by now that the Katz Group is now on record saying they would consider [...]
All of Katz’s moves seem to be about holding a gun to the city and Oilers fans. He’s saying: “pony up, or else.” That puts the city in an awkward position: pleasing Oiler fans AND taxpayers who could care less about a downtown arena.
I think its a political smokescreen. However, from a business sense and not a ‘downtown revitalization’ scenario it could be good for Katz. If they are serious about moving to Enoch they may be able to get some federal cash and the returns on a casino on reserve could be more lucrative. Plus, no need for an extra $100M soley for the area…
[...] In their effort to secure more than $225 million in public funding for their proposed Katz Downtown Arena, the Katz Group has proven that even billionaires can buy bad political advice. [...]
Every single facet of this discussion has gone wrong. From the Katz Group, to the City, to the “engaged citizens” screaming NIMBY during public consultations. There isn’t a single group who can hold the blame for this turning into a shit show. At least the provincial and federal governments have been clear and direct. And, in turn, efficient.
This whole situation makes me sad. Funding and revitalization issues aside, I think a downtown arena would be great for the city. It’s pathetic that so many individuals who all champion Edmonton as a “world-class city” can’t come together and find a way for us to have nice things.
I do believe a new arena is required, but have never been sold on the sleazy politics involving the mayor, the katz/mandel tag team, location, back room deals, Northlands attacks or indeed even a discussion about the need for a new arena.
At this point in time there is a very simple solution to the entire problem.
The city builds the entire arena (possibly with Northlands assistance), but with Northlands operating it on the city’s behalf, and the old place becomes a secondary rink for junior hockey etc. but most concerts etc get moved to the new arena.
The city (taxpayers) then owns, operates (under contract) and profits from these operations
Katz then can arrange a sweetheart “no loss to city” lease with the owners (city/northlands)
Remember, besides the above issues and the lastest double dealing from Katz, it is simple to prove he has been lying about losing money. IF he was losing money then the NHL would be sending him cash and not the Oilers sending the league cash.
And that is how simple is it to see through the Katz/Mandel agenda
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