Edmonton needs new arena: NHL commissioner Bettman

 

 
 
 
 
Edmonton Oilers owner Daryl Katz, left, and National Hockey League Commissioner Gary Bettman watch the game between the Edmonton Oilers and Atlanta Thrashers in Edmonton February 19, 2011.
 

Edmonton Oilers owner Daryl Katz, left, and National Hockey League Commissioner Gary Bettman watch the game between the Edmonton Oilers and Atlanta Thrashers in Edmonton February 19, 2011.

Photograph by: Larry Wong, edmontonjournal.com

EDMONTON — If the citizens of Edmonton want their city to be major league and competitive for big-time concerts and other events, then the city needs a new arena, NHL commissioner Gary Bettman restated Saturday.

The timing of Bettman’s visit, rather than the content of his message, is what is noteworthy here.

“Not only am I supportive, it’s obviously essential that the Oilers have a new arena,” Bettman said between periods of the Oilers 5-3 victory over the Atlanta Thrashers. “And actually it’s (also) essential that the City of Edmonton have a new arena, as well.

“This building is obviously outdated and for this city to continue to attract concerts, family shows, conventions, having a new state-of-the-art arena is important.

“Equally important, this team, the Edmonton Oilers has to have a new arena. There’s no question about it, they’re not going to stay in this building.”

Bettman has been a steadfast supporter of Oilers owner Daryl Katz’s efforts to spearhead construction of a new downtown arena, as would be expected. He visited

Edmonton and the Oilers game on his way to Calgary for today’s Heritage Classic between the Montreal Canadiens and the Calgary Flames at McMahon Stadium.

The city administration will report to council on March 2 on a variety of concerns brought forward at a meeting on Jan. 17. But the key issue with the project remains whether council is prepared to approve a funding formula for the arena, estimated to cost $450 million.

Katz has pledged to spend $100 million to help construct the arena and another $100 million for the surrounding office, commercial and retail development.

Council has also discussed imposing a ticket tax to contribute $125 million, and may seek provincial

approval for a Community Revitalization Levy (CRL) that would raise as much as $160 million.

Katz and the Oilers insist they will not play in Rexall Place beyond the expiration of the current lease in 2014, and Bettman lent his voice to that pledge on Saturday.

“This is not comparable to what our teams typically play in, anymore,” Bettman said. “The revenue streams are not comparable to what goes on in new arenas.

“This building, by any standard, is antiquated and outdated. For a team to be competitive across the board, including its revenue streams, it needs to be in a competitive arena, and this one isn’t.”

Bettman added that “for a market of this size, what (Katz) is doing borders on being generous, as opposed to being an investment.” He said in a small-market city like Edmonton a mix of public and private money is necessary to make the project sustainable.

Bettman added he does not believe the city or the team would let things get to the point where the club would consider leaving Edmonton. He said he believes everyone agrees all parties agree that the team and the city need a new building.

“It’s just a question of getting it right,” Bettman said.

Getting it right has proven to be a thorny process, though.

“We appreciate the Commissioner’s comments and his support for the project,” said Bob Black, executive vice-president of sports and entertainment for the Katz Group. “We continue to work with City Administration to settle on a financial framework that serves the City and ensures the Oilers’ long-term sustainability in Edmonton.

“We sincerely hope we can make some significant progress in our talks in the next short while. Time is the enemy and we need a deal with the City very soon to ensure we have a new building before our lease expires in 2014, to lock down pricing before the predicted escalation in labour and materials prices and to capitalize on the numerous expressions of interest we have received from prospective tenants and partners for the district.”

jmackinnon@edmontonjournal.com

jmackinnon@edmontonjournal.com

Twitter.com/rjmackinnon

Check out my blog, Sweatsox, at edmontonjournal.com/blogs

 
 
 
 
 
 
 
Edmonton Oilers owner Daryl Katz, left, and National Hockey League Commissioner Gary Bettman watch the game between the Edmonton Oilers and Atlanta Thrashers in Edmonton February 19, 2011.
 

Edmonton Oilers owner Daryl Katz, left, and National Hockey League Commissioner Gary Bettman watch the game between the Edmonton Oilers and Atlanta Thrashers in Edmonton February 19, 2011.

Photograph by: Larry Wong, edmontonjournal.com

 
 
 
 
 
 
 

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