Edmonton Council Set to Debate $250 Million Fan Park Agreement

Edmonton’s city council is poised to debate a significant agreement involving a permanent fan park, as discussions gain momentum ahead of a crucial vote. The proposed deal involves the city, the province, and the Oilers Entertainment Group (OEG) and is set for deliberation at the council meeting on March 15, 2024. If approved, the fan park, located adjacent to Rogers Place, will have a projected budget of $250 million.

The fan park is intended to accommodate up to 2,500 individuals for various events, including concerts and community gatherings. OEG asserts that the facility will enhance the downtown entertainment landscape and has received endorsements from local stakeholders, such as the Winspear Centre.

Prior to this discussion, council members voted to extend the downtown Community Revitalization Levy (CRL), enabling the city to access funds for its share of the project. This extension allows the city to borrow against anticipated CRL revenue, expediting the financing process. Only one additional council approval will be necessary before construction can commence.

Opposition and Support Among Council Members

The fan park proposal has sparked debate among council members, particularly regarding the timing of the discussion close to the upcoming election. Mayoral candidate Andrew Knack has voiced opposition, expressing discomfort with the rapid progression of the deal. “Why the rush?” Knack questioned, emphasizing the need for all council candidates to clarify their positions on the agreement publicly.

In contrast, fellow council member Tim Cartmell, who is also pursuing the mayoral position, has expressed support for the agreement. Another councillor, Michael Janz, attempted to call for a referendum on the deal but was unsuccessful. Janz highlighted concerns about potential conflicts of interest, suggesting that any campaign contributions from entities benefiting from the fan park should be disclosed.

Key Components of the Agreement

The proposed agreement comprises three key components, all of which are interlinked. The first element is the fan park itself, estimated to cost no more than $250 million. It will not only serve as a venue for entertainment but also allocate programming time for community groups, fostering local engagement.

Secondly, the agreement aims to revive the Village at ICE District project, which has been stalled due to various factors, including a sluggish downtown real estate market and safety concerns. OEG and the Katz Group previously requested a five-year moratorium on development plans. Under the new agreement, infrastructure will be upgraded, allowing for the construction of approximately 354 residential units by the end of 2028, with an additional 420 units contingent upon market demand.

The final component involves the demolition of the aging arena on the Exhibition Lands, previously known by several names, including Northlands Coliseum and Rexall Place. The province has committed to contributing a maximum of $55 million towards the demolition costs, while the city will allocate at least $35 million for public enhancements in the area. If the council approves the deal, demolition is slated to begin in summer 2026.

The agreement mandates that all three components must be approved collectively; partial approval is not an option. Funding for the project will be divided among the three parties, with $128.4 million from the province, $102.8 million from the city, and $87 million from OEG-affiliated companies.

As the council prepares for the upcoming debate, the fan park’s projected completion is set for 2029. The land for the fan park is valued at $42 million, but the city intends to purchase it from OEG for $20 million if all deal conditions are satisfied.

A memo from the city underscores the anticipated economic benefits, asserting that the fan park will contribute to downtown revitalization and vibrancy. It also emphasizes the intention to construct the facility to high standards, ensuring it harmonizes with surrounding landmarks.

Future operational costs are a consideration as well, with discussions around implementing a ticket surcharge for events at the fan park. The formula for this surcharge will be based on annual attendance and event forecasts submitted by OEG, ensuring that the financial responsibilities of maintaining the facility are adequately addressed.

As the council meeting approaches, the decision on this ambitious project is poised to shape Edmonton’s urban landscape for years to come.