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Levy extension debate ongoing as Edmonton council considers motions on OEG deal
Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Calgary Herald

time5 days ago

  • Business
  • Calgary Herald

Levy extension debate ongoing as Edmonton council considers motions on OEG deal

City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG). Article content The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core. Article content Article content Article content Two motions on the table Article content Article content The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL. Article content If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision. Article content A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments. Article content OEG projects at the centre of dispute Article content The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package. Article content Article content While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community. Article content Article content Supporters urge action Article content Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away. Article content Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown. Article content 'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.'

Levy extension debate ongoing as Edmonton council considers motions on OEG deal
Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Edmonton Journal

time5 days ago

  • Business
  • Edmonton Journal

Levy extension debate ongoing as Edmonton council considers motions on OEG deal

Article content City council is considering two motions that could delay a decision on extending Edmonton's community revitalization levy (CRL), as debate continues Friday amid uncertainty over whether the province will approve the plan without including two controversial projects tied to Oilers Entertainment Group (OEG). The extension of the CRL would allow the city to borrow against future tax revenue until 2044, funding major revitalization projects in the city's core. Article content Two motions on the table The first motion, introduced during Friday's public hearing, would refer Bylaw 21158 back to administration and direct the mayor to seek written confirmation from the Government of Alberta on which of the listed catalyst projects must be included for the province to support the revised CRL. If no response is received by July 31, administration is to return with the bylaw as currently drafted for a final council decision. A second motion, added during the debate, would also refer the bylaw back — this time directing administration to return after council has considered the master agreement between the City of Edmonton and OEG. The agreement outlines the terms of their public-private partnership and is central to understanding the commitments tied to the proposed developments. OEG projects at the centre of dispute The moves come as councillors continue to grapple with public and political pressure around the $624-million Downtown revitalization package. Article content While the proposal includes a broad range of projects, from transit infrastructure and attainable housing incentives to the Winspear Centre expansion, the two OEG-related projects, a $250-million event park and infrastructure for the Village at Ice District, have divided council and the community. Supporters urge action Despite the controversy, supporters of the bylaw continued to make their case during Friday's public hearing, with speakers urging council not to let the momentum for Downtown revitalization slip away. Joumana Ghandour, general manager of the Westin Edmonton, called the bylaw 'a smarter, more affordable way to revitalize our core,' emphasizing the economic ripple effect of cultural and public-space investments Downtown. 'Projects like the Winspear expansion and Oilers Fan Park aren't just cultural venues. They're drivers of Downtown's comeback directly impacting my day-to-day business,' she told council. 'Any further delay risks losing hard-won momentum, and with it the surge in potential occupancy for my business, jobs, investment and community vibrancy that this development will deliver.' Article content Similar support came from Beryl Bacchus, executive director of iHuman Youth Society, who highlighted the impact spaces like the Winspear Centre have on at-risk youth. 'It is more than a concert hall. It's a gateway to connection, culture and understanding,' she said. 'Being a friendly neighbour means more than just sharing space. It means opening doors for young people from marginalized, computed communities.' Viet Nguyen, founder of Boodang Music Canada, said Downtown Edmonton's lack of flexible outdoor event spaces is frustrating 'not just for us, but for the hotels, restaurants and shops that depend on those thousands of visitors.' 'On a festival weekend, we bring up to 7,000 to 10,000 people a day. That kind of foot traffic is rare in most Canadian cities outside of Toronto or Vancouver, and it makes a tangible difference,' he told council. 'So saying no to investment isn't a strategy.' Article content Cheryll Watson, chairwoman of the Downtown Revitalization Coalition, echoed that sentiment, urging council to rise above ideology. 'Unfortunately, the majority of the speakers opposed to this decision have not had the benefit of being educated about how this proven investment mechanism works,' she said. 'What we need from council right now is not ideology, but sound investment judgment.' What the CRL has funded so far Created in 2015, the CRL allows the city to borrow against projected increases in property taxes in a defined area to help fund strategic redevelopment. The current CRL is set to expire in 2034. The proposed 10-year extension would push that to 2044, allowing the city to finance new 'catalyst' projects and finish existing ones. City administration said the CRL has already helped drive more than $4.7 billion in private investment Downtown, including three new office towers and thousands of residential units. But with construction costs rising and post-pandemic recovery stalling, officials argue additional investment is needed to maintain momentum. Article content However, councillors including Andrew Knack and Michael Janz have previously pushed back against the inclusion of the OEG projects, questioning whether public funds should be used to support private developments linked to a billion-dollar company. That's the heart of the current motion — to determine whether the province's support is conditional on the full slate of projects or, if some, like the OEG developments, could be removed without sinking the deal. Previously, administration cautioned that changing the project list could restart the entire provincial approval process, potentially delaying implementation and putting the extension at risk. Kalen Anderson of BILD Edmonton Metro told council on Thursday that the deal 'is a package. Picking and choosing pieces could cost us the whole thing.' Awaiting further clarification The province has already amended regulations to extend the CRL through 2044 and updated its guidelines to allow for the inclusion of the new projects. However, no formal statement has been made on whether all the projects listed in Schedule A must remain intact. Article content Latest National Stories

Debate rages at city hall over Oilers event-park funding in hearing on future of tax levy
Debate rages at city hall over Oilers event-park funding in hearing on future of tax levy

CTV News

time6 days ago

  • Business
  • CTV News

Debate rages at city hall over Oilers event-park funding in hearing on future of tax levy

Edmonton city council is divided over a directive from the province to use money from a special tax levy on projects on land owned by the Oilers. It was the Edmonton Oilers arena debate all over again at city hall on Thursday with a slightly different flavour. Most city councillors and business leaders agree a special tax program in the core is vital for the future prosperity of downtown. The sticking point is a directive from the provincial government to spend tens of millions of public dollars to build projects on land owned by the Oilers. City councillor and mayoral candidate Andrew Knack wants to halt a $250-million event park beside Rogers Place, the home of the Edmonton Oilers. The Oilers Entertainment Group (OEG), which owns the site, is using it as their outdoor Fan Park. The event park is listed as one of the so-called catalyst projects city money would help fund through the downtown Community Revitalization Levy (CRL). 'I do support downtown revitalization, but I will not support a bad deal,' Knack, who represents the west-end Ward Nakota Isga, told media on Thursday morning. 'We don't even know if we need an event park yet ... there's just this assumption that something new and shiny will solve everything.' Event park rendering Conceptual rendering of the event park in downtown Edmonton. (Oilers Entertainment Group) The CRL was introduced in 2014 as part of the deal to build Rogers Place, which opened two years later with a final price tag of $613.7 million. The city paid $312 million of it in cash and through the levy, the team paid $165.5 million and the rest came via a ticket surcharge, the federal government and MacEwan University. The home arena of the Oilers opened in 2016, replacing Rexall Place, following years of debate and negotiation after Daryl Katz bought the National Hockey League team in 2008 from the Edmonton Investors Group for a reported $200 million. As the area within its boundary is redeveloped, the CRL is meant to reinvest that extra tax revenue into downtown. City staff have crunched the numbers and say extending the 20-year levy by an extra decade is worthwhile. Event park site The site of the proposed downtown Edmonton event park, right, that's currently being used by the Oilers Entertainment Group as its Fan Park, with Rogers Place in the background on June 26, 2025. (CTV News Edmonton) 'It is a comprehensive approach to developing downtown Edmonton, encompassing underground utilities, beautification of our streets and parks, creation and expansion of event spaces, improvement to transit stations and incentives for attainable housing,' Brett Latchford, the city's director of strategy and emerging economy, said at Thursday's public hearing. Kris Sims, the Alberta director of the Canadian Taxpayers Federation, drove to Edmonton from Lethbridge to express her concerns about the deal along with those from several others. 'That's fine, go ahead and revitalize the downtown … but why are you tying it to one element of corporate welfare?' Sims said. 'That is not fair, and it's not right.' The provincial government has final say over the CRL. Municipal Affairs Minister Dan Williams says it won't be approved unless it includes the event park and site servicing for the housing planned north of Rogers Place. The province said it would contribute more than $100 million for those projects. CRL hearing People in attendance for a public hearing at Edmonton city hall about the future of the downtown Community Revitalization Levy on June 26, 2025. (Jeremy Thompson/CTV News Edmonton) Mayor Amarjeet Sohi said he understands why Edmontonians are upset but believes the deal would fall apart without the event park, which he says would be a major missed opportunity for downtown. '(The province is) a major funder of this, a major enabler of this plan, so they're definitely going to have a say in this,' Sohi told media between hearing sessions. 'Anyone who believes that we can find $175 million of new revenue or $103 million of grant funding I think is not living in reality.' A representative of the Oilers Entertainment Group (OEG), which operates Rogers Place and the Ice District plaza as well as the NHL team among other sports and entertainment enterprises, said the corporation is proud of its contributions to the CRL. Edmonton Rogers Place downtown skyline spring/summer overcast An aerial image of Rogers Place in downtown Edmonton on June 17, 2025. (Cam Wiebe / CTV News Edmonton) 'It has been a powerful tool for revitalizing Edmonton's downtown core and helping to strengthen our education, arts, housing, and business districts,' Tim Shipton, OEG's executive vice-president of external affairs, said in a statement to CTV News Edmonton. 'The CRL has supported critical public infrastructure, attracted billions in private investment and created safer, more vibrant spaces for all Edmontonians. The MOU (memorandum of understanding) signed with the city and province represents a transformational city building opportunity, focused on additional housing when it's needed most, and a one-of-a-kind community event facility with vibrant public realm spaces — developments that will not just benefit downtown, but the city as a whole.' The public hearing is expected to be held all day Thursday and Friday. Edmonton city council Edmonton city council on June 26, 2025. (Jeremy Thompson/CTV News Edmonton) Michael Janz, the city councillor for south-side Ward papastew, told CTV News Edmonton he believes the deal isn't really about downtown, rather how a 'provincial tax grab' is going to be distributed, asking would it 'go back to Edmontonians, or is it going to go to one private business?' 'We don't even know the other options, because this was decided behind closed doors in a private negotiation between one business and our premier with the city of Edmonton along for the ride,' Janz said. 'When you can't walk away, when you're being told you have to accept this deal on terms acceptable to the OEG, that's not a negotiation.'

Opinion: Extending downtown CRL comes at too high a cost for Edmonton
Opinion: Extending downtown CRL comes at too high a cost for Edmonton

Edmonton Journal

time6 days ago

  • Business
  • Edmonton Journal

Opinion: Extending downtown CRL comes at too high a cost for Edmonton

Article content In their June 23 op-ed in support of the City of Edmonton extending its Community Revitalization Levy (CRL) for another decade, Annette Trimbee (MacEwan University) and Carolyn Campbell (NorQuest College) extoll what they see as the benefits of the proposed CRL extension for students at their respective campuses. What they fail to mention, however, is that at the core of the proposal is a backroom deal being foisted upon the city by Premier Danielle Smith. The deal would hand Darryl Katz and the Oilers Entertainment Group (OEG) $102.8 million from the extended CRL to expand their for-profit real estate and entertainment empire downtown.

Funding for $250M event park next to Oilers arena tied to future of city tax levy
Funding for $250M event park next to Oilers arena tied to future of city tax levy

CTV News

time24-06-2025

  • Business
  • CTV News

Funding for $250M event park next to Oilers arena tied to future of city tax levy

One Edmonton councillor is questioning why the city should pay, through a tax levy, for a portion of the downtown event park project announced earlier this year by the province and the organization that runs the Edmonton Oilers. The Oilers Entertainment Group (OEG) along with the Alberta government and the City of Edmonton originally laid out plans for the $250-million permanent fan park facility adjacent to Rogers Place in February after the province laid bare spending details in its annual budget. The province has committed nearly $130 million to the Ice District projects if the city pitches in millions of public dollars through the downtown Community Revitalization Levy (CRL). The future of the CRL is a topic of discussion at Edmonton city hall, where council is considering a 10-year extension of it. Since 2015, the CRL has funded parks, infrastructure upgrades and other so-called catalyst projects downtown. The city says they've helped generate nearly $5 billion-worth of public and private investment and development, including Rogers Place, towers downtown and LRT expansion. Fan Park The Oilers Fan Park down the street from Rogers Place on Friday, Feb. 28, 2025. (Jeremy Thompson/CTV News Edmonton) But after the pandemic interrupted that momentum, business leaders and downtown boosters say an extension of the CRL is vital. 'We're talking about $550 million in tax uplift that is coming that would be lost without the extension,' Doug Griffiths, the president and chief executive officer of the Edmonton Chamber of Commerce, told media on Monday. The permanent event park plus site servicing for homes north of the arena are all on land owned by the OEG. But Griffiths says discussion over the extension of the CRL 'is not about the fan park – one councillor is making this about the fan park – this is about downtown Edmonton and the entire city's fiscal sustainability over the next 20 years.' 'If we want to have a conversation about how to maximize public dollars for public benefit, let's have that in public, but this is not it.' — Michael Janz That councillor is Michael Janz, who says the provincial government and the OEG 'setting up this deal, and then sharing it with Edmontonians … is not how this should go.' 'If we want to have a conversation about how to maximize public dollars for public benefit, let's have that in public, but this is not it,' he told media. The representative for the south-side Ward papastew says the decision over the event park funding should be put to residents in a referendum, separating it from the debate over the CRL, a tax program he otherwise calls beneficial as it would help fund projects such as transit, bridges and beautification efforts along Jasper Avenue. 'The owners can pay for it themselves,' Janz said. 'They don't need Edmontonians to pay for this. We have a lot of other priorities that we need to pay for.' Coliseum The Coliseum in Edmonton in a file photo (CTV News Edmonton.) In a statement to CTV News Edmonton on Monday afternoon, Dan Williams, Alberta's minister of municipal affairs, said the province 'remains committed' to the memorandum of understanding (MOU) it signed with the city regarding the event park funding, which is tied to other funding for city projects, including housing and the demolition of the Coliseum. 'As part of the MOU, we would extend Edmonton's community revitalization levy, which would play a key role in ensuring expanding housing options in downtown and that Edmontonians have year-round access to incredible sports, cultural events, entertainment, and much more,' Williams said. The event park is expected to be the focus of a public hearing on extending the CRL Thursday at city hall.

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